India tightens proposed food warning labels in setback to industry

By Reuters News

By Aditya Kalra

- India toughened its stance on proposed warning labels for packaged foods on Wednesday, saying products high in salt, sugar or fat would carry red warning symbols even if only one of those ingredients exceeded limits, dealing a setback to the $100 billion industry.

The move abandons an earlier plan of the Food Safety and Standards Authority of India which would have included warnings only when two ingredients breached thresholds.

That plan was criticised by activists and health experts as being too lenient, prompting the Supreme Court of India to question the approach.

Warning labels will now be rolled out in a single phase, the FSSAI told the Supreme Court in a filing dated Wednesday, which is not public but was seen by Reuters.

"FSSAI proposes to adopt a single-phase approach ... Furthermore, where only one nutrient of concern is present, the corresponding nutrient shall be indicated in the hexagon," the court filing said, referring to the red warning symbol which will have a white square background.

India's food and drinks market is one of the fastest-growing for foreign players including Nestle, Unilever ULVR.L, Mondelez MDLZ.O and Mars, whose food products compete in a thriving industry that includes big Indian firms.

The nationwide debate on food safety has intensified since Reuters reported last month that India's government opted ​for a weaker labelling regime after lobbying by Coca-Cola KO.N and groups backing Nestle NESN.S and PepsiCo PEP.O which argued warning labels were ineffective. Many companies, however, have implemented such measures voluntarily in European markets.


Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.
The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.
 

Cryptocurrency-related content is intended solely as news and market commentary. Crypto Derivatives are not available to Retail clients registered with Capital Com (UK) Ltd.