The “inspector raj” needs to be abolished in favour of a “registration raj,” according to food processing minister Harsimrat Kaur Badal.NEW DELHI: An "inspector raj" has engendered so much fear among packaged food companies that it's stalling overseas investment, killing innovation and threatening the government's Make-in-India initiative, said food processing ministerHarsimrat Kaur Badal.
That's robbing the country of the job and income-creating potential of an industry growing much more rapidly than manufacturing or agriculture, Badal told ET in an interview, while acknowledging that she's sympathetic to the severe constraints facing the Food Safety and Standards Authority of India (FSSAI). The regulator is at the centre of a controversy sparked by its ban on Nestle India's Maggi noodles in June.
Since then regulators elsewhere have deemed Maggi noodles made in India safe, casting doubt on the tests that led to the local ban. Badal declined to comment on the Maggi noodles controversy. Badal is the first minister in the Narendra Modi government to be openly critical of the effects of regulatory overreach.
India could attract overseas investment worth billions of dollars, helping both farmers and consumers if companies get the right environment and are allowed to self-certify compliance, she said. The "inspector raj" needs to be abolished in favour of a "registration raj," according to the minister.
NEGATIVE FEEDBACK
Companies are opting for other countries to invest in because of negative feedback on India, she said, adding that the climate of fear was so pervasive that even industry lobby groups are reluctant to raise the matter fearing a regulatory backlash.
"In the current environment, no one can say how long it will take to get approval, so these projects were not coming to India," she said. "Now we see this inspector raj. Companies are petrified of their reputation. Further, industry associations also don't want to come to forefront as they feel they will be targeted." Manufacturers find it difficult to deal with the FSSAI because of the red tape involved, Badal said, calling for well-defined, transparent and rational norms that should be effectively implemented with exemplary punishment for defaulters.
BONDUELLE, AMY'S KITCHEN INTERESTED
The $2 billion, French processed vegetables company Bonduelle and US-based Amy's Kitchen, which specialises in organic, non-genetically modified food, are among those keen to invest in India and make it a hub for regional operations as they look beyond their saturated, ageing Western markets, Badal said.
"If we really want to make Make in India successful, then we have to adopt international standards which are not (based on) product approval but ingredient approval," Badal said. "We approve the ingredients and let the industry play along within the norms. The industry should voluntarily be responsible and we do the checking."
TRANSPARENCY NEEDED
Badal said she has raised the issue with the prime minister and the health minister and has received positive responses. She sought a balance between industry-friendly norms and food safety. "The main issue is ensuring safe healthy food for consumers... but in the name of assuring healthy food there should be no harassment and there should be clear-cut transparent systems which are mandatory and which are implemented to ensure that this is there," Badal said. "I think in all this we have missed something.
We don't have protocols for testing. Every lab has its own way of testing. Manufacturers don't know what is the way it needs to be tested." Innovation is being curbed because of a process that takes "forever," she said. The food processing industry can be a "game changer" for both farmers and consumers because it gives producers a better price and ensures that people get hygienic, safe food at affordable prices.
"I don't think this industry should be harassed. Yes, standards should be maintained. No one is going to be spared if they are providing non-hygienic or poisonous food to consumers. There will be no compromise on that," she said. "But in the name of food safety, you cannot bring back inspector raj, where inspectors are now beginning to harass the industry saying that they are getting tests done with some content found in their products. Both need to go hand in hand and both are equally important."
CHALLENGES FOR FSSAI
She said FSSAI had a "humoungous task" as it was dealing with thousands of applications but companies faced a tough time in getting approvals.
"There were plenty of complaints from across the country. With the kind of innovations, now there are hundreds of types of cakes, biscuits, bread, juices, lassi. Is it possible in a country like ours where every second new things are being innovated, to get product-to-product approval? It is not humanly possible," she said. "All of them come to FSSAI for approval and there are six scientists working on testing. It is not humanly possible."
India needs to take a cue from standards overseas that are based on approval for ingredients. Companies register themselves and pledge to follow the rules.
"It should be voluntary," she said. "And if they are not following norms, they should be penalised so strongly that no one should have the guts to do anything wro
Since then regulators elsewhere have deemed Maggi noodles made in India safe, casting doubt on the tests that led to the local ban. Badal declined to comment on the Maggi noodles controversy. Badal is the first minister in the Narendra Modi government to be openly critical of the effects of regulatory overreach.
India could attract overseas investment worth billions of dollars, helping both farmers and consumers if companies get the right environment and are allowed to self-certify compliance, she said. The "inspector raj" needs to be abolished in favour of a "registration raj," according to the minister.
NEGATIVE FEEDBACK
Companies are opting for other countries to invest in because of negative feedback on India, she said, adding that the climate of fear was so pervasive that even industry lobby groups are reluctant to raise the matter fearing a regulatory backlash.
"In the current environment, no one can say how long it will take to get approval, so these projects were not coming to India," she said. "Now we see this inspector raj. Companies are petrified of their reputation. Further, industry associations also don't want to come to forefront as they feel they will be targeted." Manufacturers find it difficult to deal with the FSSAI because of the red tape involved, Badal said, calling for well-defined, transparent and rational norms that should be effectively implemented with exemplary punishment for defaulters.
BONDUELLE, AMY'S KITCHEN INTERESTED
The $2 billion, French processed vegetables company Bonduelle and US-based Amy's Kitchen, which specialises in organic, non-genetically modified food, are among those keen to invest in India and make it a hub for regional operations as they look beyond their saturated, ageing Western markets, Badal said.
"If we really want to make Make in India successful, then we have to adopt international standards which are not (based on) product approval but ingredient approval," Badal said. "We approve the ingredients and let the industry play along within the norms. The industry should voluntarily be responsible and we do the checking."
TRANSPARENCY NEEDED
Badal said she has raised the issue with the prime minister and the health minister and has received positive responses. She sought a balance between industry-friendly norms and food safety. "The main issue is ensuring safe healthy food for consumers... but in the name of assuring healthy food there should be no harassment and there should be clear-cut transparent systems which are mandatory and which are implemented to ensure that this is there," Badal said. "I think in all this we have missed something.
We don't have protocols for testing. Every lab has its own way of testing. Manufacturers don't know what is the way it needs to be tested." Innovation is being curbed because of a process that takes "forever," she said. The food processing industry can be a "game changer" for both farmers and consumers because it gives producers a better price and ensures that people get hygienic, safe food at affordable prices.
"I don't think this industry should be harassed. Yes, standards should be maintained. No one is going to be spared if they are providing non-hygienic or poisonous food to consumers. There will be no compromise on that," she said. "But in the name of food safety, you cannot bring back inspector raj, where inspectors are now beginning to harass the industry saying that they are getting tests done with some content found in their products. Both need to go hand in hand and both are equally important."
CHALLENGES FOR FSSAI
She said FSSAI had a "humoungous task" as it was dealing with thousands of applications but companies faced a tough time in getting approvals.
"There were plenty of complaints from across the country. With the kind of innovations, now there are hundreds of types of cakes, biscuits, bread, juices, lassi. Is it possible in a country like ours where every second new things are being innovated, to get product-to-product approval? It is not humanly possible," she said. "All of them come to FSSAI for approval and there are six scientists working on testing. It is not humanly possible."
India needs to take a cue from standards overseas that are based on approval for ingredients. Companies register themselves and pledge to follow the rules.
"It should be voluntary," she said. "And if they are not following norms, they should be penalised so strongly that no one should have the guts to do anything wro
No comments:
Post a Comment