New fssai new Rule : Who are the real targets ?

The Background :-

The fssai, has come out with a new rule that every Packaged Drinking Water producer must add minimum  amount of calcium & magnesium in their produce. The limits have been specified by them like 20-75 mg/ltr for calcium & 10 to 30 mg/ltr for magnesium. The highlights of this rule are :-
  • These rules are made after the push of NGT (National Green Tribunal) in 2019.
  • This is the 4th & final extension given to all Packaged Drinking Producers.
  • This has to be implemented from January 1, 2021.
  • All majors (the Brands) are said to be ready, which contribute to almost 60% of the market share still 

There are certain questions came to my mind ....

Whom are they targeting exactly ?


I have observed everytime, when a rule is created, its to target some particular segment within the sector itself. The key issues are identified, and , with the help of certain associations & govt bodies, these issues are identified. Then the action is formed & implemented.

What may be the key issue here ?


If it is the Water Quality (retention of minerals), then why the BIS doesn't make it compulsory. The BIS is the main licensing authority. There are 6000 + units all across India who possess a BIS license, and it's mandatory & fairly descriptive that fssai compliance. 

Is it to get more units registered with fssai ? The fssai license is also a compulsory thing in addition to the BIS. However, many units (almost75%) do not possess an fssai license. These all are from the inorganized sector- the nobrands. Is it to get them under fssai ?

Is it to just satisfy the Green Tribunal ? As mentioned in point 2, if it was that serious, they would really make amends in the BIS rules. However, there is no news from them. The NGT has been shouting quite a loud from last couple of years. Is it just to give them some consolation ? 

Shall we be observing a Price Hike ? The Packaged Drinking Water Bottle MRP looks to be settled at Rs.20 , quite for some time now. Is there an overall, well justified plan to take it to Rs.25 or Rs.30 ? The Industry has incurred some major losses during the Covid-19 period & has been reporting these losses. Is it an all-industry combined action-plan to justify the "would-be" price hike ?

Reduce the "Duplicators" ?

This is an other challenged by this industry, if more rules are imposed, there will be lesser people who may dare to duplicate without license.

WHO connected guidelines

Has WHO issued more guidelines after Covid in particular ? This rule may be in line with implementing them.

Favoring the NMW

NMW means the Natural Mineral Water segment. It has rich content of minerals, naturally. The price is like heaven for these bottles. Right from the Himalayan to the Veen, these waters are heavily charged, almost 5-10 times than them. This rule benefits them, that's for sure.

Points to make ...


  1. The rule seems to be good/ok. However, challenge is the implementation. The inorganized sector doesn't seem to care about the basic value principle of this industry : Offering Hygiene. To really make them aware on their principle value is a major thing. 
  2. Who are those "purifying companies" which Bisleri says, who are doing excessive filtration ? If we observe all packaged Water companies (bisleri & others) have a TDS count of 30-72 for final water. And they too implement the RO process, which itself setup to remove the TDS - Total Dissolved solids from the source water.
  3. A technical point : There are many other minerals, with which the water quality is observed. Just increasing the Calcium & Magnesium ....will it balance the Water Quality ?

Conclusion

Let's welcome the rule, as it is created after numerous amends from time to time, after being reviewed by several scientists, industry experts. With a very clear & assertive mindset, we should always look at the positive outcomes of the rule. That's an assertive thought.

No comments:

Post a Comment

Most Recent Post

Is it advisable to maintain separate business accounts for various purposes ?

I have seen many businessmen have separate accounts for  GST/Non-GST Transactions 100% Cash Transactions It's very difficult to keep rec...