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Guwahati: The Food Safety and Standards Authority of India (FSSAI) has asked e-commerce Food Business Operators (FBO) to categorize food products on their platforms.
The Ministry of Health and Family Welfare, in collaboration with FSSAI, has shed light on the lack of standardization surrounding the term "health drink" under the Food Safety and Standards Act and its regulations. This development comes as part of FSSAI's ongoing efforts to rectify misclassifications and bolster consumer confidence in the burgeoning e-commerce food market.
Entrepreneurs operating e-commerce platforms for food products in Guwahati have welcomed this regulatory intervention, emphasizing its significance in the Direct-to-Consumer (D2C) space. Speaking to Business North East, one entrepreneur hailed the move as a "welcome step," highlighting the importance of providing accurate information to consumers to enable informed decision-making.
"As sales through e-commerce platforms and brand websites are increasing in the D2C space, it is important to bring such platforms under regulations," the person said. "The idea is to provide adequate information to the consumers so that they can make well-informed choices without encountering misleading information."
Furthermore, entrepreneurs stressed the role of categorization in distinguishing unique products, particularly ethnic and regional recipes, within the market. They expressed optimism regarding the potential expansion of the categorization system to accommodate diverse offerings.
Another entrepreneur commented, "I feel the categorization will further increase considering the few unique ethnic and regional recipes that are not yet defined and are becoming a popular choice among consumers."
According to the entrepreneurs, categorization always helps unique products be differentiated from others in the segment.
Another entrepreneur comments, "So this new notification from FSSAI is a good sign for those businesses that are focused on being transparent with customers. He further presses on the importance of transparency in categorizing brands and products, highlighting past instances where companies misled customers.
Meanwhile, the FSSAI has highlighted instances of misclassification, particularly concerning products licensed under 'proprietary food', which have been erroneously labeled as 'health drink' or 'energy drink' on e-commerce platforms. In response, FSSAI has urged e-commerce FBOs to promptly rectify these misclassifications by relocating such products to appropriate categories as outlined by existing regulations.
FSSAI, through X, said, that the term 'energy drinks' is exclusively applicable to products licensed under specific categories outlined in the Food Category System (FCS). This corrective action aims to ensure clarity and transparency regarding the functional properties of products.
Business North East spoke to the Founder and Director General of the Federation of Sweets and Namkeen Manufacturers from Mumbai Firoz H. Naqvi on it. He said "Clear directives from FSSAI are essential, considering industry perspectives too. Clarity upfront can prevent mid-way interventions. A balance of FSSAI and industry opinions is crucial for effective regulation.”
