Food and beverage companies see red over FSSAI roadblocks near schools

The prohibition of the sale of ‘unhealthy’ food and beverages in and around schools has angered packaged food and beverage companies who fear that sales will fall.

Rules issued by the Food Safety and Standards Authority of India (FSSAI) ban the sale of items containing excess salt, sugar or saturated fat —  among other ingredients – within a 50 metre radius of a school or similar educational institute or hostel from July, 2021.

Only ‘healthy’ boiled or steamed snacks will be allowed, along with cereals and pulses-based idli, upma, poha, khandvi, and dhokla etc.

Apart from banning the sale of ‘unhealthy’ snacks, the FSSAI has also prohibited the promotion of such snacks through product marketing, free coupons, school supplies, educational materials, signboards or on vending machines.

 The sale of other foods around schools has also been restricted. The list includes ice cream, sweets, canned or preserved vegetables, meat, fish, pulse-based snacks, nuts, white bread and biscuits.

With nearly all types of packaged food and beverages excluded or heavily restricted, the rules will impact all key fast moving consumer good companies ranging from Hindustan Unilever, ITC, and Nestle to Britannia, PepsiCo and Coca-Cola. 

 While the companies have yet to make a formal representation, sources said all leading food makers are holding discussions to finalise what action to take. Most of them have already pledged to cut down the level of added salt, sugar and saturated fat in their offerings by 10-25 per cent by 2023.

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Their alternative proposal is expected to focus on these changes and will probably be put forward through the CII and FICCI.

 Traders, however, have already started making representations to the government. The Confederation of All India Traders (CAIT), in a letter to Health and Family Welfare Minister Harsh Vardhan, has urged him to cancel the new rules. 

 CAIT argues that the 50-metre radius around schools will hit millions of traders who ‘will lose more than 75 per cent of their business amounting to about 15 trillion a year’. 

The rules are not only ‘barbaric’, added CAIT, but also contravene Prime Minister Narendra Modi’s call for vocal on local and Atmnirbhar Bharat.  

“Snatching the business of small and tiny traders shows non-sensitivity of government officials who are not sparing any effort in destabilising domestic trade in the country. FSSAI is an autocratic body that never consults stakeholders before bringing any rules or regulations,” said Praveen Khandelwal, secretary general of CAIT.

 According to Anurag Katriar, president, National Restaurant Association of India, while the FSSAI initiative is welcome in principle, it may be poorly implemented.

 “Conceptually, we are fully in support of promoting healthy food to school kids but these regulations will not serve the purpose. Banning anything within a certain area is an arbitrary decision and won’t stop children consuming unhealthy items”, said Katriar.

The FSSAI has also specified periodic surveillance and monitoring of vendors by local level food inspectors to check that the rules are being obeyed. 

Apart from the respective school authorities, the state food authority, the department of school education, and municipal corporations, local panchayats and local bodies will ensure compliance.

CAIT has cried foul, saying this will lead to the harassment of traders and make their businesses unviable.  

According to Arbind Singh, national coordinator, National Association of Street Vendors of India, if small vendors are harassed or impacted in terms of loss of business, then it will take up the issue.  “We have already had a round of discussions on the new rules but, for now, we have decided to wait and watch,” he said.