In big food importers’ row with FSSAI, small businesses suffering most

THE deadlock over failure to obtain product approvals for imported foods by importers from authorities concerned, leading to holding up of several consignments at various ports and airports across the country, seems to have affected small-time F&B importers the most.

In fact, many of these small businesses have suffered such losses that they are on the verge of downing their shutters.

Best before date

For most of them, apart from stuck investment, the key issue is that F&B items being perishable they are of no use after the best before date. Mitesh Trivedi, who is based in Anand, Gujarat, and is managing director, Rands Multibiz Pvt Ltd, is facing a similar situation. Last September, he started importing Jaguar, an energy drink, from the United Kingdom. 

Stuck at Mumbai port

Since then, his consignment, worth Rs 6.5 lakh, is stuck at the Mumbai Port. Trivedi explains, “My product is still stuck at the Mumbai Port, and the reason they cite for it is product approval. FSSAI does not approve of the product I have imported from the United Kingdom.”

He adds, “One can of Jaguar costs me Rs 95. I placed an order worth Rs 6,50,000, and spent Rs 3,50,000 for transportation and other purposes. A consignment of the energy drink worth Rs 6,50,000 is stuck at the port.” Trivedi rues, “It would continue to be stuck unless the Supreme Court lifts the stay order on product approvals.

Expiry in Feb 2015 

The product is slated to expire in February 2015. In the fight between the regulator and bigger importers, I stand to lose Rs 10 lakh.” He concludes, “Running the business in these circumstances has become very difficult. Many small importers, including myself, have given up and wound up their businesses.”

Review is on

Meanwhile, a source at FSSAI, on the condition of anonymity, states, “The ministries of health and food processing industries are currently in the process of reviewing the role of the apex food regulator regarding the long delays in product approvals. It would take them some time to review it.”

He points out, “Earlier, Mumbai High Court quashed the FSSAI advisories, terming them unlawful. But later, FSSAI moved the SC, and obtained a stay order until October 2014.”