Food companies, restaurants, and quick-commerce platforms may face higher compliance costs and operational delays as the Food Safety and Standards Authority of India (FSSAI) expands regulatory scrutiny across the food supply chain, Jefferies said in a report.
The report said the regulator's approach is shifting beyond individual products to cover advertising claims, labelling, product authenticity, online listings, storage conditions, and food safety practices.“Food regulation is expanding from products to the entire value chain,” Jefferies said, adding that enforcement was intensifying as companies strengthened audits, documentation, and internal controls.
According to the report, more than 150 notices have reportedly been issued to leading food, beverage, dairy, and nutraceutical companies over misleading advertisements, false claims, and labelling violations. Several companies have responded by withdrawing claims, revising labels, removing products from platforms, and discontinuing advertisements.
A key area of regulatory focus is the proposed introduction of front-of-pack warning labels for packaged foods high in sugar, salt and fat. The proposed system includes prominent red hexagonal labels that could affect product packaging, marketing strategies and reformulation decisions.
However, the brokerage cautioned that the expanding regulatory requirements could have implications for supplies, compliance costs and operational efficiency across brands and platforms. - ANI
