Need to regulate ultra-processed foods with stricter labelling: Economic Survey

The Economic Survey on Friday called for stringent front-of-the-pack labelling for brands producing ultra-processed foods (UPFs) in India, saying such products affect public health and productivity.

The UPFs include drinks, chips, chocolate, candy, ice-cream, sweetened breakfast cereals, packaged soups, chicken nuggets, hotdogs and other such stuff which are produced after multiple processes.

Addressing reporters, Chief Economic Adviser (CEA) V Anantha Nageswaran said the UPFs could have a negative effect on realisation of the country’s demographic dividend. “It is a Rs 2.5-lakh crore industry built on hyper palatability of food items and misleading advertisements, celebrity endorsements and missing or obscure labelling on packages.”

He said the UPFs were directly associated with exposure to cancer, respiratory, cardiovascular and gastrointestinal health problems. “Poor dietary intake unfortunately is also associated with adverse mental health. And most UPF brands target children and adolescents,” he said. The CEA emphasised the need to arrive at a “quick resolution on the issue pertaining to front-of-the-pack labelling which has been happening in fits and starts in this country”.

“This is not just purely about consumer information and fair disclosure. It has got long-term implications for realising our demographic dividend and productivity of our youth. More particular variables have a big implication for mental health. Those who rarely use smartphones, those who are close to their friends and relatives and those who basically have social connection and physical activity and who consume healthy foods, they have a very high mental score,” he said.

He said unhealthy eating habits affect a person’s mental health, while limiting his productivity. Stressing the private sector’s attitude towards the UPFs, he said it was the area where it could contribute a lot. “In general workplace culture, private sector’s attitude towards the UPFs, prioritising medium term over short term, all these considerations will eventually determine whether India’s wanted demographic dividend actually materialises or not,” he said.

The Economic Survey said the Food Safety and Standards Authority of India could consider bringing the UPFs under regulation with a clear definition and standards, including stricter labelling.

It added that the Health Ministry should urgently define nutrient thresholds for sugar, salt and saturated fats to regulate advertising, adopt front-of-the-pack warning labels and impose stricter marketing restrictions on unhealthy foods, especially those targeting children under 18.

A 22-country study had established that self-regulation had not been very effective in this regard, the survey said, calling for improved monitoring of branded products to ensure compliance would help build consumer confidence.