How and why food companies by-pass food laws?

How and why food companies by-pass food laws?

Recently many food related scandals have emerged in food world related to Big Brands and Big MNCs. Issues related Horse meat, stale meat, melamine, wrong labeling, etc. are common. It means it is a global phenomenon, so Indian consumers have to remain vigilant. 

I am not sure how much and what authorities can do, because till date they are not able to develop a food safety authority on which stakeholders can trust. 

The biggest question is with all the might of knowledge and resources why these companies are on the wrong side of the law?

There can be only two reasons:

1. Either their quality control systems and control of supply chain is very weak and their vendors are smart and able to supply them inferior materials and paid for the same by these big brands?

2. Another option is there is unwritten understand between buyers and suppliers to mix the ingredients and they will look the other side as long it is benefiting them.

What is the way out?

Following questions needs to be answered?

1. What all tests they were conducting on their raw materials and who all were doing it?

2. Have these companies cancelled the supply arrangement with their vendors those who re supplying them substandard material?

3. Have they taken legal action against the vendors? If not, why? because vendors may expose the buyer and their intentions.

4. Have they taken action against concerned department Head (not junior staff, they will follow what boss will say), under whose supervision substandard product was accepted and used?

If there is no action on above points, the message is clear that this is well planned activity and it is not exception, it was part of the unwritten policy.

Why Companies do these activities?

Answer is simple.

1. If law does not allow any ingredient, but it is required either to improve the sensory properties of the product like look, colour, smell, taste, etc. of the product to get customer attention and to increase market share.

2. Another reason is to improve profitability in the product category.

It can be either of these two or both of them.

How they do it?

The first job of quality control person and legal experts in the companies is to identify loopholes in the law which can be exploited for their benefit. Otherwise, when these companies hire best brains and still they land up in problems with law. Why? Something is wrong somewhere.

The fact is manipulation in food industry is global phenomenon.

Some of the classical examples are:

Some loopholes in the law acts as facilitators:

1. Misuse of clause "Carryover effect" - If law does not permit any additive like colour or MSG or sweeteners. Companies ask vendors to mix it, so that they can explain to authorities that they never purchased or used it.

2. Wrong classification: Like added Milk Solids - Milk Solid can be carbohydrate like lactose, or it can be protein or fat. In the name of milk solids what is added to the product now no one knows.

3. Allowed to use terms which are unknown to consumers like E numbers- when there is enough space to print Brand names in large fonts, pictures of celebrities, product claims, schemes, etc why vital information cannot be printed. This is nothing by lack of understand of legal authorities how business works. If there is no space of labels, companies must be forced to print all the ingredients in advertisements which is not less the font size used for the product claims used in the advertisements in any form either print, outdoor or in TV media, or in any form.

4. Most Nutritional Labeling is fictitious - Why there is no nutritional database of products sold in India by brands. When other countries can do it India can also do it.

5. No mention of allergens: Why this is missing from the food laws. Is this not important for public health? Why, in last 68 years, we are not able to make this small notification?

6. In the name of new convenient products substandard products are introduced in market: Classic example is dairy whitener and blended oils. It is nothing but milk powder with added sugar. Now sugar is sold at the rate of milk powder under new name called dairy whiteners. Low cost edible oils are mixed with high cost oil and sold as healthy options. There is large scale use of maltodextrin in milk powders and Corn syrup in honey. Who is checking them?

7. Also track where edible oil tankers are going on daily basis. Who is using and how? Many such edible oil tankers goes to the places which are sources of synthetic milk.

Consumer is ignorant and not willing to learn as well:

I request you all, please read the label and make the list of the products and also mention MRP and see what you are buying in the name of brand and marketing. I am not saying it is illegal as long it is under the law, but are these fair deals for consumers. "Jago Grahak Jago"

How to address these problems?

Fix the loopholes in the laws and relevant regulations.

1. Industry Associations should be made accountable for their members' commitment to national laws - Industry associations should be asked what actions they have taken against companies violating national laws and found guilty, because these associations in fact advocate concessions and privileges for their member companies. Peer pressure will help in rectifying the situation.

2. Food recalls should be advertised by the concerned department in all newspapers and TV channels to protect public health, wherever company is selling the product. Cost of advertisement should be recovered from the company responsible for making bad product. This will also put pressure on companies to take extra precautions in making products.

3. Most Consumer helpline or care numbers are non-functional: Why no action is taken against companies in this regard. Most of the phone numbers are non-functional or placed on fax machines. Authorities must develop a system to ensure that consumers should be able to get acknowledgement number for the complaint or query filed to the company for follow up, like Police department issues complaint number when you dial 100.

These steps can act as deterrence for the bad products coming to market provided our food safety departments are managed efficiently and no officer is using these clauses to arm twist the companies for personal gains. The fact is every retailer knows 'how to manage food safety officers'. Currently there are many complaints about many state authorities because they are asking speed money for issuing licenses to the food companies. On the other hand government is extending the deadline for implementation.

Is government serious about food safety?

Why government can't make inspectors accountable to issue licenses to all food operators by certain date, like bank managers operated for Jan-dhan accounts. After issuing the license if anyone found not meeting the law, cancel the license and stop the operations in factory like it is done by pollution department.

If regulators can't fix their own departments how they will fix the problems in Industry. This itself is a big question.

Can Modi Government identify the solution to this problem? Time will tell, till then...

"Jago Grahak Jago"