The Hindu Business Line : Traceable food

THE TRANSFORMATION OF the country's burgeoning food market is well reflected in the rapid expansion of trade volumes and the improved types, varieties, quality and presentation of food. The removal of quantitative restrictions on imports and exports four years ago threw up a further challenge to domestic producers and food inspectors alike. Rising foreign direct investment in food processing is testimony to the potential of this sector. However, some of the food laws enacted several decades ago — the Prevention of Food Adulteration Act, 1954 and the Prevention of Food Adulteration Rules, 1955 — are clearly out of tune with current market conditions. What has not changed is the lax enforcement of laws that leave consumers short-changed. The proposed single statute relating to food — the Food Safety and Standards Bill — that seeks to set scientific standards for food articles and regulate their supply chain, is, therefore, overdue. It is, however, in danger of getting watered down.

The industry fears that some of the provisions will add to costs and hurt the country's trade prospects. But a close look would show that these fears are misplaced or exaggerated. One such provision is the `traceability' norm whereby the food business operator is obliged to identify the supplier of food or raw material/ingredient. Such operators are required to have in place systems and procedures which allow for this information to be made available to the competent authority on demand. Also, to advance consumer welfare and safety, the food placed on shop shelves is to be so labelled as to facilitate traceability — the key to identifying contaminants. In recent years, and especially after the outbreak of the Mad Cow disease, consumers are becoming increasingly wary of what they eat and are demanding appropriate labelling of food. Labelling and traceability have become issues of great import for food manufacturers in most developed economies. Exports to the European Union, for instance, have to conform to labelling and traceability standards on genetically-modified foods. Food producers are falling in line because of rising consumer awareness.

In India the situation remains different. The fragmented food production facilities, the long supply chain and the non-uniform quality of raw material and ingredients are cited for food manufacturers' reluctance or inability to agree to labelling and traceability provisions. Indeed, exactly for this reason does the imposition of traceability norms make safety sense for consumers and commercial sense for producers. Food product manufacturers must shorten the supply chain by establishing backward linkages. One sensible way is contract farming whereby the manufacturer has full control over the quality of raw material right from the point of its production. Food exporters will in any case comply with global labelling standards and make full disclosure. So there is no reason to treat the domestic consumers any differently. The Food Safety and Standards Bill should be enacted as a pro-consumer legislation to provide increased transparency, better food safety management systems, and scientific standards. It would be a pity if the policy-makers succumbed to sectoral pressure.

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