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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. Jefferies also highlighted a shift in the treatment of quick-commerce and e-commerce platforms, which are increasingly being viewed as accountable participants in the food supply chain rather than passive intermediaries. Proposed requirements could require platforms to display expiry dates, manufacturing details and batch numbers on their applications. They are also expected to face greater scrutiny over seller verification, product information and storage conditions at dark stores. Restaurants, quick-service restaurant chains, cloud kitchens and hotels are facing tighter checks on hygiene, calorie disclosures, menu labelling and licences. The report said more than 30 notices had reportedly been issued to food service establishments, including major restaurant chains. Other areas under scrutiny include dairy products, health supplements, alcoholic beverages and pan masala packaging. Jefferies noted that proposed restrictions on selling analogue paneer under the name paneer could also affect the dairy sector. The report said food companies and restaurant chains were expanding compliance teams, internal audits, training programmes and quality-control processes. Organisations with robust process frameworks & faster corrective-action capabilities are likely to be better positioned as compliance expectations continue to rise, Jefferies said. However, the brokerage cautioned that the expanding regulatory requirements could have implications for supplies, compliance costs and operational efficiency across brands and platforms. (ANI)
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