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The Food Safety and Standards Authority of India (FSSAI) plans to raise the bar on food safety regulations and penalise companies that fail to comply. Union Minister for Food Processing Industries Chirag Paswan announced the move on May 16 at the News18 Powering Bharat Summit. “FSSAI monitors food products, and we’re working to match global standards,” Paswan said. “We’re making the rules stricter so companies can’t misuse advertisements or take shortcuts to grow in India. Violators will face strong penalties.”

Dairy Analogues Under Regulatory Lens

On April 16, FSSAI released draft amendments proposing tighter regulations for dairy analogues — plant-based or synthetic products designed to mimic traditional dairy. These changes, open for public feedback for 60 days, aim to prevent the misleading sale of these alternatives as genuine dairy products. The move follows recent media reports that exposed deceptive practices by several manufacturers, sparking concerns about consumer rights and transparency.

India Aims to Become Global Food Basket

When asked about concerns over potential tariff reductions on Indian food products under international trade deals, Minister Paswan acknowledged the sensitivity of such negotiations. However, he emphasized India’s capability to meet both domestic and global food demands. “We don’t need to depend on other nations for resources. India can feed the world,” he said.

Simplifying GST for Food Products

Paswan also addressed the need to streamline the Goods and Services Tax (GST) structure on food items. He expressed his intent to act as a bridge between the government and the food industry. “I’ve recommended changes to GST from time to time and will continue to do so,” he said. “The goal is to find a middle ground that benefits both sides.” Currently, different versions of the same food item attract varying GST rates. For example:

• Loose popcorn is taxed at 5%
• Popcorn with salt and spices is taxed at 12%
• Popcorn with sugar draws an 18% GST

Such inconsistencies have triggered industry demands to simplify the indirect tax regime. Paswan confirmed that discussions are underway to rationalize GST rates across food products.

Source: Money Control