Disgruntled consumers who have felt short changed by companies gradually reducing quantities in packaged essential articles while holding on to prices, have help in hand.

The Government is planning to crack down on the practice by plugging a loophole in the current packaging laws which allowed companies to do this.

The fine for violating the Legal Metrology (Packaged Commodities) Act is also being hiked from the current token Rs 5,000 to a more serious Rs 1 lakh.

The Department of Consumer Affairs has issued a gazette notification to this effect.

Earlier, manufacturers could get away with odd measures provided a declaration to this effect was carried on the pack.

The new rules would come into effect from July 1, 2012, after which certain specified commodities under 19 categories would have to be packed for sale, distribution or delivery in standard quantities as prescribed in the Government notification.

These categories include baby food, weaning food, biscuits, bread, uncanned packages of butter and margarine, cereals and pulses, coffee, tea, edible oils, vanaspati, ghee, butter oil, milk powder, non-soapy detergent powder, powdered rice, flour, atta, rawa and suji , salt, soaps, aerated soft-drinks, non-alcoholic beverages, mineral water and drinking water, cement in bags and paint varnish.

“However, to ensure companies don't suffer losses on account of their old packaging material stock, enough time has been extended to companies to exhaust their present inventory and switch to the new regimen by July next,” said an official from the Department of Consumer Affairs.

On the other hand, fast moving consumer goods companies which have been relying on reduced measures to deal with rising inflation and input costs are not pleased.

“Given the FMCG companies price points currently operating in the market, the Government cannot expect companies to not opt for reduced grammage as it would mean companies increasing prices to price points like Rs 6 or Rs 7 which would not work given the issue of convenience and scarce supply of low denomination coins for change,” said Mayank Shah, Group Product Manager, Parle Products Ltd.

Meanwhile, packaging industry experts believe the new norms would see companies initially taking a hit in their margins and look for new ways to offset the impact on costs.

Mr Thomas Cherian, CEO, Flexible Packaging India Pvt Ltd, a subsidiary of Essel Propack, which supplies packaging material to FMCG companies including P&G, Hindustan Unilever Ltd, Emami and Britannia, said, “The pressure of cost containment would increase. It could also give impetus to some innovative packaging solutions presently on the drawing board.”

> manisha@thehindu.co.in

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