Post Maggi blues: All F&B product launches on hold

If food and nutraceutical companies, tired of the long wait to get their products approved by the national regulator, were rejoicing at the new-found freedom to go to the market when they pleased, they have got it all wrong. The Food Safety and Standards Authority of India (FSSAI)'s August 26 circular, stating it was no longer possible for the regulator to continue with the process of product approvals, was not meant to be a signal for free-for-all launch, it is learnt.
Without spelling it out, that circular was about indefinitely putting on hold all product launches, a cause of worry, a source pointed out. The notification followed a Supreme Court order questioning the approval procedures of the regulator.
In such a scenario, the FSSAI headquarters here, a hub of frenetic activity during the summer months leading up to the Maggi noodles ban, is quieter. After the attention it drew from the case linked to Swiss food major Nestle, the corridors of the regulatory office now have closed-circuit television cameras at various angles. The controversy regarding alleged corruption by some FSSAI officials added to the urgency of installing those around the building.
ROADBLOCK

• FSSAI officials are busy framing regulations
• These include restarting the process of product approvals
• An official said that could take another year and till then, there could be no product launch unless it was approved earlier
• So far, 362 standards have been prescribed by the regulator
• FSSAI plans to standardise another 300 within a year
•  Under the Food Safety and Standards Act, proprietary foods like noodles, pasta & mayonnaise can be launched only with approval

As for the real business they are there for, officials are busy moving files on framing regulatory frameworks that might bring a semblance of order to the food sector, including resuming the process of product approvals. But that would take time, perhaps another year or more. Till such time, there can be no product launch unless it was approved earlier, said an official.
Under the Food Safety and Standards Act, every non-standardised or proprietary food such as noodles, pasta, mayonnaise, sauces and syrups can be launched only with the regulator's approval. So far, 362 standards have been prescribed, and the regulator has plans to standardise another 300 within a year, a step that could ease the burden on food companies, as the number of approvals required will go down significantly. Approvals are not required for standardised products.
"Section 22 of the Act is clear… The August circular of FSSAI did not change the provisions,'' the source said. If anybody releases any product that is poorly covered under Section 22, enforcement agencies are authorised to destroy, confiscate or remove those. The recent controversy around Patanjali atta noodles not having FSSAI approval has brought the subject to focus once more.
FSSAI, which has even discussed the option of refunding the approval fee, currently at Rs 25,000, in case of delay in clearance, has often found applications lacking data on shelf life stability. Estimates suggest a large majority of applications do not mention "for how long a product will remain good". For now, the food sector is worried as to how long the indefinite hold-up would continue in product launch.
According to an executive linked to the beverage sector, the regulatory body has been left without a well-laid guideline. The change in top ranks of the FSSAI has added to the confusion, he said. Yudhvir Singh Malik, who was chief executive during the Maggi probe, was shifted to Niti Aayog as additional secretary. Former agriculture secretary Ashish Bahuguna was brought in as chairman after the post had been vacant for long. "The current deadlock over issuing product approvals and launch of new products by companies is going to persist for a few more months," he said.
"We are in complete darkness,'' said another executive from the sector. The whole system is vague and blurred for us now, he pointed out. Yet another top food company official referred to "lack of enough dialogues between the company and the regulator" as the primary cause of worry.