Chiefs of Food Cos Lobby for Faster Approvals

NEW DELHI

Call on regulator to settle issues that delay product approvals and lead to differences of opinion

The heads of a bunch of food companies met the food safety regulator last week, in what seemed like a high-level lobbying aimed at settling issues that delay product approvals and lead to skirmishes between the firms and authorities.

GlaxoSmithKline Consumer Healthcare managing director Zubair Ahmed, Coca-Cola India president Venkatesh Kini, Kellogg MD Sangeeta Pendurkar, Cargill India MD Siraj Chaudhry , Mother Dairy MD S Nagarajan, Ferrero Group India head Luigi Oddone and McCain Foods MD Vikas Mittal were a part of the delegation that met Food Safety and Standards Authority of India (FSSAI) Chairman K Chandramouli and other officials.

The meeting that saw so many heads of companies coming together indicates the importance of product approvals for these companies at a time when they are seeing signs of a turnaround in the market after a two-year slump.

The meeting was kept under wraps until now, with the companies unwilling to discuss the topic on record because of the sensitivity of matters over food regulations and product approvals. Chandramouli confirmed the meeting.

“It was an exchange of ideas and information ... everyone had suggestions and points of view. I had not met many of the CEOs earlier, so they came to meet me. Product approval was one of the issues discussed,“ he told ET.

Usually, the corporate affairs representatives of these firms meet FSSAI officials to settle issues.

“We are implementing the food safety standards on a huge scale for the first time in the country. It is a big challenge and there are also litigations, but ultimately, it is for the benefit of the consumer,“ he said, explaining the reasons for delayed approvals.

One of the officials with direct knowledge of the discussions said while various aspects were discussed, emphasis was on allowing the companies to quickly take their new products to the market.

“The India heads also wanted to assure FSSAI that they are aligned with the food regulator in addressing food safety and quality,“ this person said. “There's an urgent need for quick approvals at a time when product innovation gives a huge competitive edge,“ another official said. “A lot of investment goes in research and development, which companies want to fast track, but are stuck at the regulator because clearances are taking too long.“

The relationship between food and drug firms and FSSAI hasn't always been smooth, with frequent conflicts over new product approval as well as imports and new labelling rules.

In April this year, FSSAI blocked a consignment of syrups meant for Tata Starbucks, which led the coffee chain to approach the Bombay High Court for relief.

Last year, on the eve of Diwali, consignments of leading gourmet chocolate importers such as Mars, Godiva, Guylian and Lindt were stopped by the regulator.

FSSAI had said the imported products didn't contain India-specific labeling, and that the importers had merely pasted local stickers on products that were supposed to sell in overseas markets.

Maharashtra-based Vital Nutraceuticals and the Indian Drug Manufacturers Association had filed a petition saying that FSSAI didn't have the power or authority to issue advisories as it amounted to amending regulations framed under the Food Safety and Standards Act 2006.

The Bombay High Court called FSSAI's advisory unlawful and gave a verdict in favour of the drug firm, which the regulator has challenged in the Supreme Court.

A couple of months ago, FSSAI told importers of canola oil not to import the edible oil under the brand name, stating that every container must be labelled “imported rapeseed-low erucic acid oil“.