The Hindu Business Line : Small, medium food processors concern over new food law

They fear that high costs involved in adhering to the law's stringent demands on quality control would impact them adversely, leading to loss or closure of several units.

The law that brings 13 food legislations under a common umbrella has been under the scrutiny of the small and medium scale food processors from the time it was tabled in Parliament in 2005, with this section asking for specific amendments to safeguard the rights of the small processors as well as the farmers who supply raw material. Appeals by the food processors' associations to amend certain sections in the Bill before it was tabled before Parliament last month went in vain.

"Though we are glad about the unification of the laws, there are certain adversary clauses in the legislation. These could lead to closure of units particularly in the tiny, small and medium scale enterprises, besides providing a major setback to the growth of food processing in the country," said Mr Subodh Jindal, member and ex-President, All-India Associations of Food Processors. Though several amendments were made in the food law before it was passed, the small and medium sector claims that those specific to them were excluded. Though Government's hold on the central advisory body was decreased, it still has a larger representation than the industry.

The Referral Laboratory would still be given preference over the Accredited Laboratory, if both showed variable results in the sample testing of food.

Mr Jindal said the current legislation favoured the big processors. "Though the regulatory powers of the law has been given to an autonomous body, the Food Safety and Standards Authority, the ultimate power still rests in the hands of the Ministry of Health. The law is pro big processing companies who can afford to buy expensive machinery to check their product quality. Smaller processors will get ousted," said Mr Jindal.

Small processors were completely dependent on indigenous raw materials and farm products for processing, thus generating employment indirectly, he said. Big players, in contrast, often import raw material. He felt that the current legislation could lead to a gradual curtains down for small processing plants, with small farmers, unable to sell their produce, also impacted.

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