Times b2b HomeTimes b2b Home
 
       
 
    Channels
Cover Story
DEC - JAN 2003 
 
>>
>>
>>
>>
>>
>>
>>
>>

   


Is The Order Ready?

A year after the roadmap to modern, integrated food law was drawn up in the Union Budget, we  still remain way off the goal. Amitava Sanyal looks at the chequered path of the legislation that promises to pick the country's food industry from the pickle it's in

The Indian food industry agrees with Charles Dickens’ Mr Bumble – the law is an ass. Sample this: Not only are we laden with a variety of antiquated laws but many of them don’t often agree with others. It often takes up to two years to walk a new product through the central food standard authorities, and there’s no appellate authority to contest the final ruling. We have also signed a multilateral agreement at the World Trade Organisation that requires harmonisation of the food laws by October 2004 – and that’s still a dream. The list goes on.

“About 3,000 cases are pending for several foreign food companies. They are suffering because of these laws,” says NM Kejriwal, Vice President and Treasurer, International Life Sciences Institute, India.

The confusion also came under the public gaze with the bottled water saga, when the Union ministries of Consumer Affairs, Health and Food Processing had to get into the unenviable act of clearing the air when an NGO stirred a hornet’s nest by claiming that it had found pesticide residue in some samples that it tested.

“In addition to various provisions, there are amendments and additions or deletions every now and then, which appear in the Government Gazette. When one wants to have a look at the standards, there is no one authentic publication of the Government. The US and UK food legislations are published by government agencies and are available for sale at one point,” points out Dr Jagdish Pai, Head of Department, Food & Fermentation Technology Division, Chemical Technology Department, University of Mumbai.

There’s more, points out Dr Pai. “As per the WTO provisions, the food standards applicable to products crossing international boundaries will be the Codex (Codex Alimentarius, authored by the Food and Agriculture Organization and World Health Organization), and not the local food laws. This will mean that an imported product can contain something that is permitted by the Codex, but not on the permitted additives’ list under the Prevention of Food Adulteration (PFA) Act.”

The new recipe
In the previous Budget, it all seemed to be happening. The industry heaved a sigh of relief when the then Finance Minister, Yashwant Sinha, declared that a modern integrated food law would be instituted in place of the existing multiplicity of regulations for food standards. A Group of Ministers (GoM) was formed under the express orders of the Prime Minister to take forward the process of drafting the new law. The bogey juddered at the very onset as the chairmanship of the GoM was passed around among several ministries – from commerce to finance, and finally, law.

Cut to the chase. A year has passed by and the GoM has met only once – that too as late as January 27. And thanks to the latest reshuffle in the Union council of ministers, we have new faces in the GoM, including a new Law Minister. The draft legislation that is being debated needs the assent of the GoM on several issues to hasten the Cabinet, and thence, the Parliament. Before the reshuffle, a tentative date had been fixed in early February for the next GoM meet, but that date is history and we don’t have another yet.

But not all is lost. The integrated food law, interestingly, found mention in the Presidential address to the joint session of Parliament at the beginning of the Budget Session on February 17,2003. If nothing else, it indicates the seriousness that the Union Government is investing in the new law. A senior government official even said that if he could help it, he would have the Bill tabled before the current (Budget) Session of Parliament was through.

It has to be admitted that despite the political ennui, some ground has been covered. The relevant industry associations – Confederation of Indian Industry, Confederation of Indian Food Trade and Industry (CIFTI), All India Food Preservers’ Association and the likes – have submitted a concept paper on integrated law. The Government has introduced what one official calls “a good balance between industry interests and consumer needs”. A few issues that the GoM wanted ironed out by the respective Secretariats – of the Law, Commerce, Agriculture, Health and Family Welfare, Consumer Affairs and Food Processing Ministries – have been dealt with.

We have borrowed one of the most important clauses from the US Bio-terrorism Law – the application of capital punishment for those indulging in a “deliberate attempt to cause death”. This would be a remarkable first for the food laws in the country

But the (PFA) Department in the Health Ministry queered the pitch late last year by proposing amendments to the PFA Act, a longstanding demand of the industry. The Food Processing Ministry, the Secretariat for the new Law, steadied the ship by positing that since we were headed for an integrated law, amendments to old ones would be totally redundant.

That’s because the integrated law seeks convergence among the existing regulations for food standards – the PFA Act, 1954, PFA Rules, 1955, the ssential Commodities Act, mandatory certification including Food Products Order, the Milk & Milk Products Order and the likes. Amendments would also be made to rules governing Agmark and Bureau of Industrial Standards to remove mandatory certification in relation to Food Articles from these.

The law also has to contain the necessary legal provisions regarding labelling. Hence, the Standards of Weights & Measures Act, 1976, the related Packaged Commodities Rules, 1977, the Standards of Weights & Measures (Enforcement) Act, 1985 and Infant Milk Substitutes and Feeding Bottles Act shall have to exclude all products covered under the new law.

A key point in the new scheme of things would be the setting up of an autonomous Food Regulatory Authority of India (see box ‘The new food administration’). The Authority would coordinate and supervise the implementation of the new law and formulate rules and procedures for the future. A Council for Food Standards, which would have a much larger representation of all stakeholders, would be in charge of recommending the key mandatory minimum food safety standards and regulations to the FRAI.

With the ball in the Government’s court at the moment, the industry is concerned about the punitive elements that would be introduced – it wants a “grading of violations” to avoid harassment in the field. Partha S Mukherjee, Vice President of CIFTI and Director (Legal & Corporate Affairs) at Glaxo SmithKline Beecham Consumer Healthcare, says that “It is the punishment angle that concerns us. We should also look closely at the case for vertical standards (essential compositional standards for selected foods) against horizontal ones. We are for having an appellate authority outside the courts.”

The Government, on its part, assures adequate safeguards too. The new law wouldn’t allow anyone to be prosecuted unless an appeal panel has gone into the case at the state level. Inspectors too can be reprimanded for indulging in deliberate harassment.

The body that would put the new law into practice would be the proposed Food Safety Administration. It would monitor all matters relating to food safety and enforcement of it. Most importantly, it is this body that would ensure compliance in each state.

Well that takes care of the promised ‘integration’ of the laws. What about the ‘modernisation’ underwritten alongside? Food safety is a growing concern the world over, and to facilitate trade, the Indian authorities have to conform to global standards. For one, the new law has gleaned from the Food Standards Code in Australia and New Zealand, a region with which India’s food trade amounted to almost $250 million in 2001-02. The result: “unsafe and unsuitable food” has replaced “adulterated”, an archaic term in the modern food phraseology. Even for the concept paper, industry members looked at the codes published in the European Union and Malaysia, among others.

Interestingly, another piece of legislation that our mandarins have drawn from is the Bio-terrorism Law (Public Health Security and Bioterrorism Preparedness and Response Act), introduced in US in 2002. From this has come one of the most interesting clauses – the application of capital punishment for those indulging in a “deliberate attempt to cause death”. This would be a remarkable first for the food laws in the country. The European Union is still weighing such a step.

To the table?
So far, so good. But whither hence? Where is the industry headed in the absence of a definite timeline to the whole process? None of the officials TFPJ spoke to had that answer.

“If nothing is announced in this Budget, we will go to the Prime Minister. Nothing is likely to happen without his intervention,” says Mr Kejriwal, a senior member at the All India Food Preservers’ Association.

The top brass at the Food Processing Ministry remains tight-lipped about the timeline, saying that much is in the hands of the new Law Minister, Arun Jaitley.

Over to Mr Jaitley.

 


Copyright © Bennett Coleman & Co. Ltd. • All rights reserved • Disclaimer
Other Times Group Sites - The Times Of India | The Economic Times | ET Invest | ETintelligence | Femina | Filmfare | Navbharat Times | Times Classifieds | Property Times | Education Times | Maharashtra Times | Responservice | Indianadsabroad | Jobs & Careers | Times Multimedia