India tightens proposed food warning labels in setback to industry

India has tightened its proposed warning labels for packaged foods, a move that will impact the $100 billion industry. The Food Safety and Standards Authority of India (FSSAI) now plans to include red warning symbols for products high in salt, sugar, or fat, even if just one of those ingredients exceeds limits. This approach marks a departure from FSSAI's earlier plan, which would have required warnings only when two ingredients breached the set thresholds.

The stricter policy was criticized by activists and health experts as being too lenient, leading the Supreme Court to question its approach. The new warning labels will be implemented in a single phase, as stated in a filing to the Supreme Court, though the document itself remains confidential. The FSSAI states that only the nutrient causing concern will be highlighted in the hexagon-shaped red warning symbol, which has a white square background.

India's food and drinks market, particularly valued by foreign players such as Nestle, Unilever, Mondelez, and Mars, could be affected by this stricter labeling regime. The debate surrounding food safety has been growing since Reuters reported last month that India's government had opted for a weaker labelling regime, following pressure from Coca-Cola and groups supporting Nestle and PepsiCo, who argued that warning labels were ineffective. However, many companies have already adopted such measures voluntarily in European markets.