Rajit Punhani flags surge in ultra-processed food consumption, pesticide-linked trade setbacks and dairy quality concerns, urging structural policy reforms
India needs a fundamental rethink of both its dietary patterns and food production systems, the chief executive of the Food Safety and Standards Authority of India (FSSAI) has said, warning that rising consumption of ultra-processed foods, pesticide-heavy farming and supply chain gaps pose growing risks to public health and economic sustainability.
Speaking at the ICPP Conference in Delhi, FSSAI CEO Rajit Punhani said increasing consumer demand is driving supply-side distortions. “I get trolled a lot whenever I talk about the consumer… but when there’s an increase in consumption and demand, production is bound to respond,” he said.
Demand Pressures Distorting Supply
Punhani cited the example of artificially ripened mangoes to illustrate how unseasonal demand can affect food quality. “If there’s an increase in demand for mangoes in March or April, you are bound to get artificially ripened mangoes,” he said, adding that producers and the food industry inevitably respond to market demand, often more cohesively than consumers.
Ultra-Processed Foods: Affordability Challenge
On ultra-processed foods, Punhani identified affordability as a key structural driver.
“It’s extremely cheap. You get a packet of biscuits for five rupees, which becomes very attractive for low-income families,” he said, questioning how policy can reverse the trend so that healthier food becomes more affordable than unhealthy alternatives.
India recorded the fastest growth in ultra-processed food sales globally between 2006 and 2019, with market value rising from USD 0.9 billion to nearly USD 38 billion — a nearly 40-fold increase.
Convenience categories such as instant noodles and ready-to-eat meals have seen the fastest expansion, growing at a compound annual rate of 16.7 per cent, reflecting shifting lifestyles and consumption patterns.
Call for Policy, Not Just Criticism
Punhani urged policymakers and researchers to focus on systemic solutions rather than criticising industry.
“Instead of criticising and saying that we are promoting ultra-processed foods, how do we create an ecosystem that discourages their consumption?” he said.
He also cautioned against overlooking the role of food processing in supporting farm incomes. “Food processing provides significant income to farmers, which cannot be ignored,” he added.
India’s 2025 Economic Survey has proposed a “health tax” on ultra-processed foods, though no implementation roadmap has yet been announced. Meanwhile, FSSAI’s front-of-pack labelling proposal — aimed at warning consumers about high sugar, salt and saturated fat content — continues to face industry resistance.
Pesticide Use Hurting Export Competitiveness
India’s position as a leading spice exporter is increasingly under pressure due to quality concerns. The country faces over 200 consignment rejections annually due to pesticide residues, contamination and labelling issues.
In 2024 alone, more than 1,200 alerts were issued against Indian spices on the EU’s food safety system, leading to estimated losses of around USD 200 million.
“A lot of the pesticides we use are not recognised by the EU, which impacts our global trade,” Punhani said. He noted that while India chairs the Codex committee on spices under the Codex Alimentarius Commission, global benchmarks continue to be heavily influenced by Western standards.
Dairy Sector Faces Structural Imbalances
Highlighting challenges in the dairy sector, Punhani pointed to a widening demand-supply gap as a driver of quality risks.
“Demand far outweighs supply, creating incentives for adulteration,” he said, adding that the high price of milk compared to adulterants encourages malpractice.
He also flagged concerns over antibiotic use in cattle and poor-quality animal feed as contributing factors. In response, FSSAI has launched a nationwide enforcement drive against adulteration and misbranding of milk and milk products, including paneer and khoya.
Under a 2026 mandate, all milk collection centres must be equipped with testing kits, while dairy operators are required to maintain digital logs of supply batches for regulatory oversight.
Infrastructure Gaps and Consumer Awareness
Punhani also highlighted deficiencies in cold chain infrastructure, which continue to affect food quality and lead to losses, particularly in perishable categories.
He stressed that long-term change will depend on shifting consumer behaviour. “Unless there is greater consumer awareness about consumption patterns, the sustainability of good-quality food will remain a challenge,” he said.
