May 22, 2015

Several items of top food companies fail to meet norms of regulator


The Food Safety & Standards Authority of India (FSSAI) rejected the applications on account of assessment of risk or safety, according to a statement on the regulator’s website.


NEW DELHI: The national food regulator has rejected scores of product approval requests by Tata Starbucks, Ferrero, FieldFresh Foods, Kellogg and McCain, among others, saying they were unsafe, and pulled up companies for trying to seek unfettered passage for their merchandise using the 'Make in India' platform.
The Food Safety & Standards Authority of India (FSSAI) rejected the applications on account of assessment of risk or safety, according to a statement on the regulator's website.
Applications by Tata Starbucks that were disallowed include over 30 variants of puddings, sauces, mixes, syrups, tea and coffee. For Tata Starbucks, the local joint venture of the world's largest coffee chain, this was possibly the single biggest set of product approval requests that was rejected by the regulator in one go.
Other products that were rejected include McCain's battered pepper and cheese bites, Venky's chicken Arabic-style kofta and crispy chicken burger patty.
Also rejected were Kellogg's Special K-red berries, Del Monte's egg mayonnaise/salad dressing variants, natural vinegar and a proprietary hot sauce, and Ferrero Rocher's proprietary milky and cocoa spreads with cereals and milk chocolate."Starbucks is committed to complying with the regulations in every market we operate in. In India, all of the products and ingredients that we serve are safe," a Tata Starbucks spokesperson said in an email response. "FSSAI has not raised any questions on the safety of our products."
This is not the first time that Tata Starbucks has had a problem with FSSAI. Last April, the regulator blocked a consignment of syrups, which was released after the cafe chain moved the Bombay High Court for relief.
Emails sent to spokespersons of Ferrero, Kellogg and FieldFresh Foods (a venture between Del Monteand Bharti Enterprises), elicited no response till the time of going to press. McCain India could not be reached for comment.
Separately, the regulator pulled up companies for criticising how it functions and trying to take advantage of the government's 'Make in India' initiative, which encourages local manufacturing. There have been skirmishes between FSSAI and companies over holding back approvals for the import of some products, including chocolates and liquor. Companies have also been critical of the tardy pace of processing applications.
REGULATOR'S OPEN LETTER
"Most food business operators, especially the aggrieved ones, appear to be swearing by the hon'ble PM's 'Make in India' initiative, conveniently forgetting that it is also accompanied by the words 'zero defect and zero effect'," FSSAI Chief Executive Officer YS Malik said in a tersely worded open letter to food & beverage firms on May 11, which was posted on the website. "The extent of unilateral condemnation of a sector regulator by the people whom it is meant to regulate has been unprecedented for some time in the past."
Malik said the system of product approval has been projected as a highly contentious issue. "There are a number of reasons for the industry's anguish...I do not wish to be drawn into the debate about the merits of product approval, especially proprietary food, at this stage," he said in the letter. Malik could not be reached for comment. 
The notice lists applications received by the food regulator which have been rejected "on assessment of risk and safety of the proposed products by the product approval and screening committee and the scientific panel", according to the FSSAI statement. The products are a combination of imported and locally made ones. The list is updated as of April 30, 2015. Each of the products was rejected in the month of April. 
"The approval requests have been pending for a while now. We had factored in that the approval could take even more time so we moved on with our other products," said the CEO of one of the companies whose product approval request was rejected, asking not to be identified. 
Another company official said that although the decision can be challenged in court, it is a long-drawn process. "We would not want to get into those issues. Product approval, as it is, is so slow that we end up losing the competitive edge despite thoroughly researching these products," the official said. 
'NO SIGN OF SELF-REGULATION' 
Malik also states that some firms conceded they were not aware of the details required to be submitted for safety/risk assessment, while others blamed their staff who committed "silly" mistakes and still some others said they needed proper advisory support. He mentioned that the quality of applications for product approvals leaves a lot to be desired. 
The food regulator conducts tests of random samples and in the case of imported products, checks them at ports. The FSSAI official said in his letter that companies often find it convenient to draw parallels with the US Food & Drug Administration or the EU regulatory system, "little realising that self-regulation is rather compelling in those economies, thanks to a very conscious and aware consumer base, coupled with an effective and responsive legal system". 
"Conversely, the Indian consumer is much less aware and largely gullible, and we carry the constraints of our legal system. We often see the misleading claims and ads but one is yet to see any visible signs of self-regulation," the letter adds. 
Last year, the CEOs of foods firms including GSK Consumer Healthcare, McCain, Coca-Cola, Kellogg, Cargill, Mother Dairy and Ferrero Group met the FSSAI brass to lobby for faster product approvals. 
An industry veteran said that when consumption of everyday grocery products is beginning to show signs of revival after a decade-long slump, faster product approval gives firms a competitive edge and higher consumer traction.

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