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Losing out on eating, selling quality food
ET Bureau | August 12, 2025 5:00 AM CST

Synopsis

FSSAI surveys reveal that a significant portion of India's prepared food fails to meet quality standards, exacerbating food insecurity due to pre-existing production losses. This substandard food limits India's global trade integration and necessitates protective tariffs, further impacting nutrition and economic productivity. Addressing this requires capacity building, stringent enforcement, and adaptation to evolving food habits.

New Food Safety and Standards Authority of India (FSSAI) surveys show that the proportion of prepared food not meeting its standards is typically around 20%. This food isn't necessarily unsafe for consumption, but it does not reach thresholds set by the regulator. Yet, it represents a very big number in terms of the food being consumed countrywide and, seen in conjunction with India's very high loss and quality erosion at the production stage, contributes unduly to food insecurity. India is especially vulnerable to food waste because of high incidence of hunger. Loss of food at either production or consumption stage places an additional cost on the environment through inefficient use of land and water. Over time, these externalities can add up to a bigger bill than the immediate waste of food.

The other dimension to substandard food is the restrictions it imposes on market access. Since national food benchmarks are consistently beyond reach for a large segment of domestic producers, India loses its capacity to integrate into the global trade in food both at the production and consumption stages. Higher standards in destinations where India can export its agricultural surplus serve as non-tariff barriers. This causes a policy reflex to protect India's food market through tariffs, adding another pressure point to the country's food security. The consequent nutrition deficiency affects overall economic productivity. Solutions to the issue of food quality have to traverse a wide range, from capacity building to stringent enforcement. Responses must adapt to changing food habits as income levels rise.

Improving quality of prepared food has linkages to its production and storage. Enforcement capacity needs to be built up so that regulators can show results in a steady lowering of the proportion of substandard food. Having a steady number denotes a failure of processes and policing.


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