Regulator whip may hit food product launches

NEW DELHI: This festive season, you may have to struggle to find some new variants of your favourite chocolate, cookies or even sauces. After the Maggi saga, the market is expected to see less number of food product launches even as the food safety regulator maintains a tight scrutiny of what is already on the shelves. 

Market sources and industry executives say in the absence of clarity in the food safety regulation, many companies are holding back new launches as well as supplies of existing products. 

This comes in the wake of Food Safety and Standards Authority of India (FSSAI) refusing approvals for several new variants of top brands in the packaged food segment even as many others in segments like macaroni, pasta, sauces etc. continue to be under stringent check. 

Over the past few months, many products including those from Tata Starbucks, Venky's and McCain Foods had to exit the market following the regulator's crackdown, which started with recall of all nine variants of Maggi instant noodles after many state food regulators alleged the popular snack of contained added monosodium glutamate (MSG) and excess of lead. 

While Nestle is contesting the regulatory order in court, the packaged food industry as a whole is complaining that the regulator is circumventing its purview. The industry has also expressed qualms about the failure of the government and the regulator to communicate with the manufacturers on required labeling and standards, the basis for rejection of many food products in recent past. 

Moreover, the industry claims the testing facilities used by the regulators are not at par with their products and that is the reason many of these products which have failed testing in one state have got a clean chit from another.

"The looming uncertainty has not only impacted the existing products in the market but also many new product launches. Companies have put their product launches on hold because any enforcement has the potential to do a significant damage to their brands and products," a senior industry executive, who is also part of All India Food Processors' Association, said. 

Branding is a very essential component of the packaged food product market and companies do not want to risk that, especially in cases where the product is yet to be launched. "Maggi is an apt example. All such food products are sold based on their brand value which is attached to trust on quality. Any kind of regulatory action has the potential to harm that trust," says another executive. 

However, FSSAI officials say the testing facilities are accredited. Brushing aside concerns about less number of products entering market, regulatory officials say only quality products should be available for consumers. It has also come out with new regulations and standards to bring in more clarity. 

While both packaged food industry as well as food regulations are at a nascent stage in India, it may take a while before consumers can taste choicest delicacies.