Keeping close watch on online food biz: Maha FDA commissioner

The Food and Drug Administration (FDA) is keeping a close watch on the online food business and has taken several steps to ensure compliance in Maharashtra, a senior state official Tuesday said. "We are keeping a close watch on the online food business and has taken several steps to ensure compliance in the state," the state's FDA Commissioner Pallavi Darade said.

Addressing a gathering at the CII Ice Cream Industry Conclave, Darade said, "In the last few months, we conducted raids at almost 350 outlets of online food delivery sources and found out that almost 112 of them are operating without licenses. Many of them are operating out of unhygienic places. We have filed 200 such cases against them." These actions would benefit the consumers in the long-run, she added.

With the Rs 15,000 crore ice cream industry expected to grow steadily at 15-20 percent over the couple of years, there is a need to deliberate on the dynamics and scope of growth of the industry, she said. "The Food Safety and Standard Act is relatively new and the number of regulations on the number of products have come in play as on 2011 and are at par with the world standards," Darade said.

Speaking at the event, Vadilal Industries managing director Devanshu Gandhi said that despite the large population base, the Indian per capita consumption of ice cream is considered to one of the lowest with just 400 ml. "Compare this with China at 3000 ml and the US at 22000 ml. However, with several favourable factors like affordability, increase in disposable income and booming middle class, this could soon change," he said.

Gandhi further said that there is also a need for increasing the awareness of this sector. "The total advertising spends across various platforms is to the tune of Rs 60,000 crore, out of which the share of the FMCG sector is almost 30 percent. However, ice Cream industry spends less than Rs 200 crore in advertising for its products," he added.

Gandhi also pointed out that ice creams are not considered in the same basket as the other dairy products like cheese and butter. "The ice cream industry is taxed higher. We have to pay GST at 18 percent while other dairy products are taxed at 12 percent," he added..