The Aakhya Weekly #106 | The Labelling Makeover

In Focus: Unveiling the Truth on Your Plate: FSSAI's Bold Move to Reshape Food Labelling in India

By Aradhana Gupta

In a groundbreaking move that promises to revolutionize how Indians perceive their packaged food, the Food Safety and Standards Authority of India (FSSAI) has proposed a significant overhaul of nutritional information labelling. The proposal, which aims to display total salt, sugar, and saturated fat content in bold letters and larger font sizes, marks a pivotal shift in India's approach to food transparency and public health. As the nation grapples with a rising tide of non-communicable diseases (NCDs), this decision could be the beacon that guides millions of consumers towards healthier food choices. But what does this mean for the average Indian consumer, the food industry, and the broader landscape of public health policy?

The Silent Epidemic: India's Battle with NCDs

The FSSAI's decision to amend the Food Safety and Standards (Labelling and Display) Regulations, 2020, comes at a critical juncture. India, like many developing nations, is witnessing a rapid increase in lifestyle-related diseases. According to the World Health Organization, NCDs account for 63% of all deaths in India, with dietary factors playing a significant role. This statistic underscores the urgency of the FSSAI's initiative.

The existing regulations, while comprehensive, have been criticized for their complexity and lack of consumer-friendliness. For instance, the current format, with its dense, technical language and small print, often leaves consumers bewildered. Terms like "per 100 grams," "daily value," and "serving size" can be confusing for the average shopper, making it difficult to quickly assess the nutritional quality of a product. Moreover, the absence of clear and prominent indicators of key nutrients such as sugar, sodium, and saturated fat obscures the overall health impact of a food item. This lack of clarity hinders consumers from making informed choices based on their dietary needs and health goals. The proposed changes aim to address these concerns by making crucial nutritional information more prominent and easily understandable. This shift aligns with global trends towards more transparent food labelling, reflecting a growing awareness of the link between diet and health.

As Hippocrates, the father of modern medicine, once said, "Let food be thy medicine and medicine be thy food." This ancient wisdom resonates strongly with the FSSAI's current efforts to empower consumers through information.

Decoding the Label: What's New?

The FSSAI's proposal goes beyond mere aesthetics. By mandating that the per-serve percentage contribution to Recommended Dietary Allowances (RDAs) be displayed in bold for total sugar, saturated fat, and sodium content, the authority is empowering consumers to make informed decisions quickly. It transforms the food label from a cryptic document into a clear, actionable tool.

This move could potentially spark a domino effect across the food industry. As consumers become more aware of the nutritional content of their food, there may be increased pressure on manufacturers to reformulate their products to reduce levels of these "nutrients of concern." This could lead to a surge in healthier options, driving a market shift towards products that align with consumer demands for transparency and well-being.

Moreover, the clarity of this new labeling system could encourage consumers to explore a wider range of products. Armed with knowledge, they can identify healthier alternatives, potentially leading to a more diverse and balanced diet.

Learning from the World

India's journey towards improved food labeling is not isolated. It draws inspiration from successful global initiatives. Several countries have implemented innovative strategies to enhance food transparency. The United Kingdom’s traffic light system, for instance, uses color-coded labels to quickly convey the nutritional profile of a product. While simple, it has proven effective in guiding consumers towards healthier choices.

Australia and New Zealand’s Health Star Rating system offers another approach. By assigning a star rating based on overall nutritional quality, it provides a rapid comparison tool for consumers. This system incentivizes manufacturers to improve their product formulations to achieve higher ratings.

Chile's pioneering approach to front-of-pack labelling, implemented in 2016, serves as a particularly relevant case study. The country mandated black warning labels on foods high in calories, saturated fats, sugar, and sodium. This resulted in a 23.7% decrease in the purchase of sugary drinks over an 18-month period. The drastic reduction in sugary drink consumption serves as a testament to the power of clear, impactful labeling.

The Digital Frontier: Technology and Nutrition

The digital frontier offers immense potential to transform nutrition education and consumer behavior in India. QR codes on product packaging could serve as gateways to detailed nutritional information, personalized dietary recommendations, and interactive educational content. Imagine scanning a code and instantly accessing expert advice on how a product fits into your diet or discovering delicious recipes using that item. Mobile applications, synchronized with wearable devices, could track dietary intake, and physical activity, and offer tailored guidance. This data-driven approach would empower individuals to make informed choices while providing valuable insights for public health initiatives and product development. However, challenges such as the digital divide, data privacy, and standardization must be addressed to fully realize this vision. 

Challenges and Opportunities

The FSSAI's proposal to revamp nutritional labelling in India is a double-edged sword, presenting both significant challenges and promising opportunities. At the forefront of these challenges is the potential resistance from the food industry. Manufacturers may struggle with the increased costs of redesigning packaging and reformulating products to meet new standards. This financial burden could potentially be passed on to consumers, raising concerns about food affordability and accessibility.

However, this challenge also presents a unique opportunity for innovation within the food sector. Forward-thinking companies could gain a competitive edge by developing healthier alternatives that not only comply with new regulations but also cater to an increasingly health-conscious consumer base. This could spark a wave of research and development in food technology, potentially leading to breakthroughs in creating nutritious yet palatable food options.

The enforcement of these new regulations across India's vast and diverse landscape presents another significant hurdle. Ensuring uniform compliance from multinational corporations to small local vendors will require a robust and well-coordinated enforcement mechanism. This challenge underscores the need for capacity building in regulatory bodies and widespread awareness campaigns.

While the focus on sugar, salt, and saturated fat is crucial, there's a valid argument for a more holistic approach to nutritional labelling. A comprehensive system that also highlights positive nutrients like fiber, protein, and essential vitamins could provide a more balanced picture of a product's nutritional value, encouraging consumers to make choices based on overall nutritional benefits.

Beyond the Label: Cultivating a Health-Conscious Society

The success of this labelling overhaul hinges not just on the clarity of information provided, but also on the ability of consumers to interpret and act on this information. This necessitates a multi-pronged approach to cultivating a health-conscious society, with education playing a pivotal role.

Integrating food literacy into school curricula could foster a generation of informed consumers adept at reading and interpreting food labels. This educational initiative should extend beyond schools to reach adults through community programs, workplace wellness initiatives, and public health campaigns. The media, both traditional and social, can be powerful allies in this educational endeavor, creating engaging content that explains the new labelling system and its importance.

Government support is crucial in this transition. Public education campaigns need to be complemented by economic interventions, such as subsidies for healthier foods and taxes on unhealthy options, to shape consumption patterns effectively. Strict regulations and robust enforcement mechanisms are also necessary to ensure industry compliance.

A New Chapter in India's Nutritional Story

The FSSAI's proposed changes to nutritional labelling represent a significant leap forward in India's fight against NCDs and its commitment to public health. By prioritizing transparency and consumer empowerment, these reforms have the potential to reshape India's food landscape.

As Mahatma Gandhi said, "It is health that is real wealth and not pieces of gold and silver." Similarly, the FSSAI's initiative is not just about labels; it's about investing in the health and future of a nation.

As we await the public consultation process and the final implementation of these changes, one can't help but wonder: how will this nutritional transparency transform our relationship with food? And more importantly, are we ready for the truth that will be unveiled in bold letters on our favorite snacks and staples? India's quest for better health has commenced, presenting every citizen with an opportunity to actively engage in a transformative and nutritious journey.

Top Story of the Week

Karnataka Govt Mandates Kannadigas in Private Jobs

The Karnataka cabinet recently approved the draft State Employment of Local Candidates in Industries, Factories, and Other Establishments Bill. This legislation mandates that 50% of managerial positions and 70% of non-managerial roles in the private sector, including the IT industry, be reserved for Kannadigas.

Furthermore, the bill mandates a 100% reservation for Kannadigas in Group C and D positions within private industries. The objective is to ensure Kannadigas are not deprived of employment opportunities and can lead comfortable lives in their home state. In scenarios where adequate local candidates are not found, establishments can seek relaxation; however, the proportion of local candidates must be above 25% for managerial positions and 50% for non-managerial roles.

The Karnataka Government’s move was opposed by Industry heads and Industry bodies such as NASSCOM and the Federation of Karnataka Chamber of Commerce and Industry (FKCCI) who expressed concerns about the potential repercussions, such as a shortage of skilled labour, which could significantly affect tech companies and eventually drive businesses to relocate. This shift might hinder progress, deter investment, and stifle startups, especially as more global firms consider investing in the state. The government has assured extensive consultations with all stakeholders to balance the interests of both industries and constituents of Karnataka.

Government Implements Uniform 5% IGST on Aircraft Parts

The Union Government is set to streamline the tax landscape for the aviation sector by implementing a uniform Integrated Goods and Services Tax (IGST) rate of 5% on all aircraft and engine parts, effective July 15, 2024. This move follows the 53rd GST Council meeting's recommendation to standardise the tax on imports of parts, components, testing equipment, tools, and toolkits for aircraft, regardless of their HSN code. This decision is expected to significantly cut operational costs, address tax credit issues, and attract investment. With projections indicating the Indian Maintenance, Repair, and Operations (MRO) industry becoming a $4 billion market by 2030, this move is poised to contribute to this robust ecosystem. 

Previously, the sector grappled with varied GST rates of 5%, 12%, 18%, and 28% on different aircraft components, leading to an inverted duty structure and GST accumulation in MRO accounts. The new policy eliminates these complexities, fostering a more efficient tax environment, while aiding growth promotion in the MRO sector. The ministry is confident that this initiative will drive innovation, support sustainable growth, and advance India's journey towards becoming Atmanirbhar.

A Few Good Reads

• Miren Lodha writes how FM Sitharaman can draw the roadmap for India’s manufacturing growth in sunrise sectors in the Budget.

• Surabhi Malhotra and Shubhra Jha explain how heatwaves are evaporating the right to play. 

• Srikanth Vishwanathan and VR Vachana view why our large cities need metropolitan governance.

• Shrayana Bhattacharya argues how public policy impacts personal choice and social ties.

• Auguste T. Kouame views logistics as key for India as a business destination