Industry Associations should change in National Interest

Why always blame the Government?

Many Industry Associations have to change their approach in National Interest

After IB report on foreign funded NGOs, it is high time to relook at other stakeholders involved in policy making bodies. 

Concerns to be addressed by Industry Associations are:

• Who is making adulterated food or importing sub-standard foods? Government or Private sector. 
• Why samples passed by many private laboratories failed in International markets?
• Why HACCP certificates and quality certificates are issued without proper systems in place?
• Why Junk foods are promoted at the cost of health of people even after their brand ambassadors said they don't believe that these products are good for health. 

Why no action was taken by Industry Associations against members importing sub-standard foods and offering sub-standard or food adulterated foods. 

Association may say they are not prosecuting agencies, but the question is are they advocating and promoting agencies for the same organizations.  As citizen, I find some arguments of Industry associations are quite disturbing.

I am sharing some live situations with you all based on my experience with Industry Associations and various authorities in last 30 years.

Let me share experience of Food Sector:

Before 2001,  Industry associations played very important role in sharing industry practices with policy makers, but after liberalization and after the spread of internet some where associations failed to catch with changing technologies and aspirations of citizens of India. They reduced themselves to just event management organizations, because now policy makers use internet to source all relevant information from all over the world. Very often Industry associations are in dilemma whether to support the demand of domestic Indian industry or to support large importers those who pay good amount of membership fee.

Skill development and innovations are major challenges for growth in future but nothing was done in these areas to make India, global economic power like China.

If this the duty of government to ensure skilled manpower for Industry and promotion of innovations in Industry, than what is the role of Industry associations.  I feel, NASSCOM has done better job than other large associations in making India leader in their areas of Interest.

Even for industries skill development, associations expect tax payers money should be used. Why little profit can't be invested for these vital activity. It will be useful to understand the role of industry associations in Indian context. So far associations demanded concessions and tax incentives, at a time when country needs more resources to develop food security, basic health services and education system. They never demanded domestic standards to be made better so that quality of life can improve in India. They always seek concessions.

Rich section of society is lobbying to make more money at the cost of poor citizens and not even willing to undertake CSR activities seriously.  

Live Example:

When Food Safety and Standards Authority of India (FSSAI) is doing great job in preventing substandard products, those do not meet Indian food laws, to enter into India, many industry associations are demanding dilute Indian laws so that India can become "Dustibin of the World". They are willing to please their members at the cost of national interest. Can they do this in USA or Europe. INDIAN LAWS must have same respect what is there for EU and US laws in world trade.

As Hon'ble Prime Minister Sh. Modi ji said, we are the largest democracy and the largest market of the world. We should talk with level of strength and respect. "Bharat ko ankh mila ke baat karni hogi, ankh jhuka kar nahin". We all have to ensure that this happens.

Let the world follows and respects Indian Laws, if they want to deal with India, like they respect their own laws. FSSAI is doing right thing by telling the world respect laws of India.

Why we should follow defective food laws of the world?

Why we should follow laws blindly which failed to prevent obesity, life-style diseases, another problems in population in US and EU.  Failure of food laws in those countries is helping only junk food industry and pharma industries at the cost of their own citizen’s health and they call it ‘development and growth’. If food laws were good and effective in those countries, why there is obesity problem and other health problems related to food. It means their laws have some serious deficiencies which is hurting consumers. Any doubt?

Are we willing to follow these failed approaches of EU, US and other countries? It is high time we should not follow those systems which failed their own citizens and were not able to protect their health. The only segment which flourished in those countries is junk food and pharma industry at the cost of public health.

Let us Learn from the climate change case, first the western world promoted wrong and highly polluting technologies, now they are realized their mistake and focusing on clean technology. In place of accepting their role in creating pollution in the world, they are forcing developing countries to stop development because this will lead to pollution and global warming. 

Similarly, they want to promote “JUNK FOODS” and when population will suffer and then they will talk about India should buy "patented drugs" to treat the citizens and then they will talk about “SENSIBLE FOODS”.   Can’t we learn from others’ mistakes?

Development of Food Industry:

Food industry development is important but not at the cost of consumers health and national interest. If there is any difference of opinion in any segment of society, let us discuss that as well. Choice is important but in that case enough warning should be on labels.

It is good to know that FSSAI has taken initiatives to address the grievances of food processing industries to address issues related to FSS Act.  Good effort but benefit of this good initiate is not reaching the industry.

Example: What all transpired in the meetings were not circulated by any leading Industry associations to wider industry mainly micro-small and other industries in remote areas? Consumers also wants to know, what was the agenda, what was the discussion and who presented what agenda item, etc.

I am sure this was not the spirit of policy makers with which FSSAI initiated these dialogues.

Now the Questions are:

• Who will communicate what was the agenda of the meeting?

• Who should be accountable for dissemination of Minutes of Meetings between Industry and FSSAI?

• Who all attended the meeting from Industry on behalf of SSI, Medium Scale Industry, Indian Large Scale Industry, Traditional food industry, Commodities, MNC, etc.

Why Sectoral Associations are more relevant in today’s context in place of general "all-purpose" associations?

Due to advancement of science and technology, agriculture and food industry has become very technical and complicated in nature. Every sector has its own issues. My humble request to authority is, kindly invite the relevant sector industry association which are leading that Industry sector. Please do not depend on those associations where food industry is just one of the annexure as part of their agenda that too under compulsion. To test the reality, find out what is the staff strength and resource allocation for food processing sector by these association. 

On the other hand, food industry will be lifeline for rural economy and urban consumers in coming days. This needs due understanding and attention by all.

Example of sector associations are given below, please invite them as well, for meaningful discussions:

• Edible Oils: Solvent Extractors Association of India

• Dairy: Indian Dairy Association

• Livestock Products: CLFMA of India

• Bakery: Biscuit Manufacturers Association

• ICMA : Indian Confectionery Manufacturers Association

• Sugar : Indian Sugar Mills Association

• Ice cream: Ice cream Manufacturers Association

• Packaging: Packaging Association

• Spices: Spice Association

• State Associations: Every state has Industry Association.

• Agrochemicals MRLs: Crop Care Federation of India

• Tea: Associations affiliated with Tea Board

• Coffee: Associations affiliated with Coffee Board

• CPAI - Commodity Association

• Rice: Rice Millers Association

• Wheat: Roller Floor Milling Industry Association

• Women Entrepreneurs: They should be invited.

These sectors are also contributing very meaningfully in nation building. Many of them DO NOT produce junk foods at all, even in worst case they are nutritionally superior products compared to junk food industry. The current representation of Industry associations do not understand these sectors and do not represent these sectors at all.

Serious Issues in Authorities and Industry Interface:

Today, India cannot be represented by same associations in all meetings irrespective of subjects, with same set of people in every meeting on every agenda with no technical background on the subject.

FSSAI and other authorities should rectify the situation in national interest.

I understand many people will not like note of mine, but should I please my friends or should I think what is good for INDIA. At the risk of making many friends upset, let me say, it is high time to rectify the situation and meetings should focus on how to improve the quality of food in India in place of seek concessions or how to dilute enforcement of food laws of India. 

Who is giving suggestions to change the laws?

We have seen IB report on foreign Funded NGOs. What about Industry representatives in policy making bodies? Do they have consumer and national interest in mind? Are the keen to ensure safe food for all? 

Please think about the following: 

• Pl. check the background of industry representatives and their technical expertise. Are they technically competent to contribute in the matters related to food science and technology under Food Laws with having technical qualifications or they are just their for doing lobbing with authorities.

• FSSAI is not a lobbing platform; these issues need high level of technical skills. Every department should seek the CV of all representatives from Industry otherwise only rich and powerful industries will get place on high table with policy makers.  Is this fair in democracy?

• Who should rectify the situation? What is the role of government departments in getting MSME industries on discussion table, when we talk of supporting resource poor industry sectors?

• We give subsidies to MSME to develop but no platform to hear their voice in policy making bodies so that they can express their challenges and issues. This must change. 

• Should money and size be the sole criteria to be on high table with authorities? Who will protect interest of Small and Medium industries in remote areas? 

• Under WTO, Codex has mandate to organize capacity building program for under developed countries. What about FSSAI? There should be initiative by FSSAI and all policy making bodies to encourage Small and medium industry and other sectoral and regional industry associations to participate in policy making bodies. Currently, this is missing from the system. This is against the spirit of democratization and inclusive approach of decision making process.

I need your attention on these issue.

Challenges before policy makers:  

Authorities may say that we had invited them but they don't come what we can do? How many associations we should invite? Other administrative limitation are also there.

I agree, take an example, FSSAI with the help of MFPI take these issues as challenge and decide how to address these issues. MFPI as development agency should spend time and energy in creating organizational capabilities in MSMEs.

Information technology and internet can be used for webcasting the discussions or video conferencing can be used to connect with associations in far off places.

Approach and Working system of the associations should be to address these challenges of SMEs to make them competent to address the aspirations of Consumers and food safety, not to dilute the standards.

Industry Associations also have limitation:

Unfortunately, functioning of Associations also has inbuilt limitations. Associations are in market to collect membership fee and sponsorship fee, for their own survival. They are also competing with other industry association to occupy the high table with authorities. This helps them in getting more members. They also need big corporates to fund their activities because only large companies can pay large amounts. Cost of servicing small members is also very high. That is why large associations don’t want too many small members. That is why major time and energy of these associations goes in generating revenues through exhibitions, seminars and conferences. When it comes to committees, Whoever pays or can pay gets the high table and also gets the time to convey their "views and messages" to audience in seminars and conferences and also  with ministers and authorities in meetings. 

With invention of internet and IT, when all information is freely available on internet, many such associations have reduced themselves to either club culture for rich and mighty members and event management companies for rest. IN MANY CASES, COMPANY INTERESTS ARE PROJECTED AS AN INDUSTRY ISSUE.  Unless authorities will not take the initiatives to check this trend, inclusive growth will not happen. How to ensure inclusiveness in decision making process is up to authorities and their approach.

Please also appreciate, all industry association have their own agenda. Large corporates will try to influence the agenda of Associations in their favor, because all associations are technically lobbying bodies, they are not development agencies. They never talk about what is good for consumers and ask government to be tough with offenders unless it hurts the commercial interest of members.  So please don't expect that they should be doing justice to all. "Might is right” or “Money makes the mare go" works in Association.  Proof should be to check how many times they took action against repeated offenders of the law by disqualifying their memberships. Pl. don't ask them, check the records.

The way forward:

It is high time to make decision making process and discussions more open and inclusive.

You should also fix the accountability of all representatives about the facts they present to authorities. As we all know "Half-truth leads to Mahabharath". That is why there is always a conflict within different stakeholders because of lack of trust among each other.

Can we ensure “Satyamev Jayate”?

I am placing some suggestions for your consideration and discussions:

1. Ensure that if any association which is not sector specialist association, must include representatives of the sector whose agenda is in discussion and also include SME, traditional food industry, MNC, regional association and small retailers representatives, not just in name but also with credentials. Otherwise, don’t get surprised if an MNC manufacture representative can come on behalf of small retailers’ representatives or local traders’ association or a junk food company will represent farmers association just because they can pay for membership or sponsorship.

2. Before meetings, all participants should declare their areas of interest and they should also indicate which sector or agenda they are representing on behalf of which sector and what is the technical qualification of representative in the subject to ensure competency of the representatives. This will force Industry associations to send right people for the meetings. Example: Can a person with non-science background with 30 years’ experience in corporate lobbying is suitable to discuss issues on enzymes or food additives?

3. When we are asking every government officer to disclose their assets to ensure transparency and accountability, why we can't ask industry and NGO representatives to disclose their technical qualification and competency in national interest so that meaningful discussions happens in meetings, not just lobbing to dilute the laws.

4. WTO agreement says, only competent person should be authorized on technical subjects. Competent person with qualification and with experience in areas of expertise. There is NO mention of word "experience" at all. Example: Person can be graduation pass with 30 years’ experience in doing lobbying in food industry be more competent than food technologist with 3 years’ experience in the right department. Unless you ask CV or technical qualification how you will come to know about this? Reason: If competent person gives wrong statement or evidence, he can be made accountable because he claimed he is competent by credential. Ignorant person will always hide behind benefit of doubt. Think about it please.

This is what WTO is also saying that under TBT and SPS Agreement that technical competency is precondition, not experience. Nowhere experience word is used in WTO Agreements. Pl. do internet search to confirm this. It is technical competency which counts.

Role of NGOs:

This rule should also apply to NGOs. After IB report, foreign funded NGOs should be out of committees, we have seen their motives in nation building. Why we can't encourage locally funded NGOs. NGO representatives should also have technical competency. Emotions can't substitute facts.

Many competent professionals can be part of NGOs, if they want to engage them. Authorities should also fix criteria for NGOs participation as well. This will help in getting the direct interface with the concerned stakeholders and industry. This will help in building direct linkage with wide range of issues faced by society and industry. They will feel relevant in discussion process and in nation building.

Resource Poor Association with Credibility and Competency needs support of concerned departments.

• Why only people with resources should be encouraged?
• Who will encourage people with fewer resources but good talent?
• Should we ensure or encourage "reservation" to encourage MSME sector to participate in technical meetings. This will improve their confidence.

If required bigger hall can be used in any association building or in any government building or in any collage. These meetings can be on weekends to have proper participation, if required. 

Webcasting option and video conferencing option should also be explored.  

The proposed suggestions will make FSSAI more inclusive and the address the criticism about functioning of FSSAI will go down drastically, because when wider audience will see how FSSAI functions then criticism of FSSAI by vested interest will be meaningless.

For FSSAI when it comes to Food Quality and Safety, "INDIA FIRST" is and should be the motto, others can wait.

As citizen, I am sure FSSAI is doing in preventing sub-standards food entry into India and will do what is in the interest of INDIA and Indian Consumers. 

Continuous Capacity Building within FSSAI and within Industry Associations is also an important agenda to ensure the credibility of these organizations. 

As a consumer, I want a strong Food Safety Authority to protect me and my well-wishers from substandard, adulterated and junk foods.  ​ 

When you see their representation, Very often it appears that Industry Associations are cross-roads. The logical question that emerges is -  what is more important for them...their members' interest or or their country's interest. The way they argue tells, who is closer to their heart.

Will Industry Associations help us in getting safe and wholesome food without any worry of adulteration and hidden information from labels.

What is your opinion? 

Pl. share your views in the comments section below.