PRS LEGISLATIVE BRIEF

Food Safety and Standards Bill, 2005

By consolidating several different laws for the food sector, the proposed bill seeks to
establish a single reference point for all matters relating to food safety and standards. The
scientific development of the food processing industry is also sought. M R Madhavan and
Kaushiki Sanyal present a legislative brief.
HIGHLIGHTS OF THE BILL

The Food Safety and Standards Bill, 2005 consolidates eight laws governing the
food sector and establishes the Food Safety and Standards Authority (FSSA) to
regulate the sector.
FSSA will be aided by several scientific panels and a central advisory committee
to lay down standards for food safety. These standards will include specifications
for ingredients, contaminants, pesticide residue, biological hazards and labels.

The law will be enforced through State Commissioners of Food Safety and local
level officials.

Everyone in the food sector is required to get a licence or a registration which

would be issued by local authorities.

Every distributor is required to be able to identify any food article to its

manufacturer, and every seller to its distributor. Anyone in the sector should be
able to initiate recall procedures if he finds that the food sold had violated
specified standards.

KEY ISSUES AND ANALYSIS

The organised as well as the unorganised food sectors are required to follow the
same food law. The unorganised sector, such as street vendors, might have
difficulty in adhering to the law, for example, with regard to specifications on
ingredients, traceability and recall procedures.
The Bill does not require any specific standards for potable water (which is
usually provided by local authorities). It is the responsibility of the person
preparing or manufacturing food to ensure that he uses water of adequate quality
even when tap water does not meet the required safety standards.

The Bill excludes plants prior to harvesting and animal feed from its purview.
Thus, it does not control the entry of pesticides and antibiotics into the food at its
source.

The power to suspend the license of any food operator is given to a local level
officer. This offers scope for harassment and corruption.

It appears that state governments will have to bear the cost of implementing the
new law. However, the financial memorandum does not estimate these costs.

PART A: HIGHLIGHTS OF THE BILL [1]

Context
The food sector in India is governed by a multiplicity of laws under different ministries. A number of
committees [2], including the Standing Committee of Parliament on Agriculture in its 12th Report
submitted in April 2005 [3], have emphasized the need for a single regulatory body and an integrated food
law.
The Food Safety and Standards Bill, 2005, aims to integrate the food safety laws in the country in order to
systematically and scientifically develop the food processing industry and shift from a regulatory regime to
self-compliance. As part of the process of consolidation, the Bill proposes to repeal eight existing laws
related to food safety*.

Key features

Regulatory authority
The Bill proposes to establish the Food Safety and Standards Authority of India (FSSA), which
would lay down scientific standards of food safety and ensure safe and wholesome food. The
FSSA would be assisted by a Central Advisory Committee, a Scientific Committee and a number
of Scientific Panels in specifying standards. The standards would be enforced by the
Commissioner of Food Safety of each state through Designated Officers and Food Safety Officers.
Table: Composition of FSSA

The FSSA would consist of a Chairperson and 18 members. The Chairperson would be either an
eminent food scientist or a civil servant not below the rank of Secretary. Seven of the members
would be ex-officio, not below the post of Joint Secretary, from various ministries. Five members
would be appointed by rotation every three years from the states and Union Territories. The
Authority would have two representatives each from the food industry and consumer
organizations, one food technologist, and one member from a farmers' organization.

Standards for Food Articles

The Bill prohibits the use of food additives, processing aid, contaminants, heavy metals,
insecticides, pesticides, veterinary drugs residue, antibiotic residues, or solvent residues unless
they are in accordance with specified regulations. Certain food items such as irradiated food,
genetically modified food, organic food, health supplements and proprietary food cannot be
manufactured, processed or sold without adhering to specific regulations.

The Bill makes it mandatory for the distributor of a food article to identify the manufacturer and
the seller to identify either the manufacturer or the distributor of a food item. Every packaged food
product has to be labelled as per regulations in the Bill. The packaging and labelling of a food
product should not mislead consumers about its quality, quantity or usefulness.

Food Recall Procedures

The Bill has special provisions for food recall procedures. If a food business operator (i.e., anyone
owning or carrying out a business relating to food) considers that a food item is not in compliance
with the specified standards, he has to initiate procedures to withdraw the food in question and
inform the competent authorities.

Enforcement
Every food business operator is required to have a licence in order to operate his food business.
Petty manufacturers who make their own food, hawkers, vendors or temporary stall holders do not
require a licence. Instead, they need to get their businesses registered with the local municipality
or Panchayat.
The Bill empowers the FSSA and State Food Safety Authorities* to monitor and regulate the food
business operators. The Commissioner of Food Safety of each state appoints a Designated Officer
(DO), not below the level of Sub-Divisional Officer, for a specific district whose duties include
issuing or cancelling licences, prohibiting sale of food articles that violate specified standards,
receiving report and samples of food articles from Food Safety Officers and getting them
analysed. The DO also has the power to serve an 'improvement notice' on any food operator and
suspend his license in case of failure in compliance with such a notice. The DO also investigates
any complaint made in writing against Food Safety Officers. Food Safety Officers are appointed
for a specified local area and their duties include taking samples of food articles, seizing food
articles that are of suspect quality or inspecting any place where food articles are stored or
manufactured.
The State Commissioner, on the recommendation of the Designated Officer, decides whether a
case of violation would be referred to a court of ordinary jurisdiction or to a Special Court. Cases
relating to grievous injury or death for which a prison term of more than three years is prescribed
are tried in Special Courts.
The Bill provides for a graded penalty structure where the punishment depends on the severity of
the violation. Offences such as manufacturing, selling, storing or importing sub-standard or
misbranded food could incur a fine. Offences such as manufacturing, distributing, selling or
importing unsafe food, which result in injury could incur a prison sentence. The sentence could
extend to life imprisonment in case the violation causes death. Petty manufacturers who make
their own food, hawkers, vendors or temporary stall holders could be fined up to Rs 1 lakh if they
violate the specified standards.
In order to judge cases related to breach of specified regulations, the state government has the
power to appoint an Adjudicating Officer, not below the rank of Additional District Magistrate.
Any person not satisfied by the decision of an Adjudicating Officer has the right to appeal to the
Food Safety Appellate Tribunal (or to the State Commissioner until the Tribunal is constituted).
The Tribunal enjoys the same powers as a civil court and decides the penalty in case of noncompliance with the provisions of the Act.

Finances
The Financial Memorandum of the Bill estimates that an expenditure of Rs 10 crore is required to
establish the FSSA. The amount includes non-recurring capital expenditure of Rs 3 crore and

further recurring expenditure of Rs 7 crore per annum towards salaries, allowances, rent for office
accommodation etc.
PART B: KEY ISSUES AND ANALYSIS

Objectives of the Bill

The main objectives of the Bill are: (a) to introduce a single statute relating to food, and (b) to
provide for scientific development of the food processing industry. The Bill aims to establish a
single reference point for all matters relating to food safety and standards, by moving from multilevel, multi-departmental control to a single line of command. It incorporates the salient
provisions of the Prevention of Food Adulteration Act 1954 and is based on international
legislations, instrumentalities and Codex Alimentarius Commission [4] (Codex).

Scope
o

Organised vs. Unorganised Sector

There could be a case for a separate regulation for the unorganised sector. Given that the
unorganised sector includes a large number [5] of street food vendors, hawkers,
temporary stall holders etc., application of the same law as for the large scale industries
may be unrealistic, especially in the short term. Also, requirement of registration and
powers given to local level officials to penalise infringement of required standards may
lead to corruption. Some of the issues faced by vendors are addressed in the National
Policy on Urban Street Vendors, 2004 formulated by the Ministry of Urban Development
and Poverty Alleviation. [6]
Food hawkers in India are generally unaware of food regulations and have no training in
food-related matters. They also lack supportive services such as water supply of adequate
quality and rubbish disposal systems, which hamper their ability to provide safe food. [7]
If such facilities were provided to food vendors, as has been done in countries such as
Malaysia and Singapore [8], India might be more successful in ensuring that this sector is
able to maintain acceptable standards of hygiene and cleanliness.
The Bill makes provision for graded penalties where offences like manufacturing, storing
or selling misbranded or sub-standard food is punished with a fine and more serious
offences with imprisonment. For instance, the penalty for manufacturing or selling substandard food extends to Rs 5 lakh, while for misbranded food, it extends to Rs 3 lakh.
The Bill also makes provision for compensation in case of injury or death of the
consumer. The street food vendors and hawkers can be fined up to Rs 1 lakh. The fines
might prove to be debilitating for the unorganised sector and small scale enterprises,
whereas such penalties might not be an effective deterrent for large companies.

Potable water
Though standards are specified for water used as an input in manufacture/preparation of
food, the Bill does not require any specific standards for potable water (which is usually
provided by local authorities). Thus, it is the responsibility of the manufacturer to ensure
that clean and adequate quality water is used even when tap water does not meet the
required safety standards. This could be a tall order given the scale of operation of small
food enterprises and street food vendors. Cost of preparing food could also rise if each
vendor or manufacturer has to invest in water purification systems.

Definitions

Some terms in the Bill have not been defined. This could create confusion and require
interpretation by the courts in case of dispute.
The Preamble as well as Clause 16 (1) refer to 'safe and wholesome food' for human consumption.
However, 'wholesome' or 'safe' have not been defined in the Bill.
The Bill also mentions certain terms like 'Food Safety Management System' whose definition calls
for adoption of 'Good Manufacturing Practices', 'Good Hygienic Practices' and 'Hazard Analysis
and Critical Control Point'. However, it is not clear from the Bill what these terms imply and
whether the Codex definition of such terms is to be followed.
In the Bill, 'Contaminant' is defined as 'any substance, whether or not added to food, but which is
present in such food as a result of production, manufacture, processing, preparation'. The Codex
guideline, on the other hand, defines contaminant as 'Any substance not intentionally added to
food, which is present in such food as a result of the production' (emphasis added). The omission
of the phrase 'not intentionally' from the definition in the Bill could result in cases where yeast
added to bread might be called a contaminant.

Implementation and enforcement

o Managing Pesticide Residue
The Bill excludes plants prior to harvesting and animal feed from its purview. Any
harmful input (such as pesticides in vegetables or antibiotics in animal feed) that could
affect the safety standards of food products are not effectively covered. Therefore, the
onus for ensuring that pesticide residue is within acceptable levels lies with every
manufacturer/vendor.
o

Traceability
As per Codex guidelines, traceability covers the whole chain from the farm to the
consumer. However, in India, many items such as grain and vegetables are sold at mandi
(wholesale) markets. If a food product contains grain or vegetables with pesticides above
the permitted level, it would not be possible to trace back the contaminant beyond the
mandi. This makes it difficult to take any corrective action.

Testing Facilities
The Bill states that samples of food articles would be sent for testing to various
accredited laboratories. It also stipulates how many samples should be taken. However,
shortage of testing laboratories and equipment [9] might hamper the implementation of
the Bill. [See the section on Finances below].

Promote or Penalise
The Bill aims to provide for a 'systematic and scientific development of the Food
Processing Industry'. However, the thrust appears to be on penalising offenders of food
safety standards rather than providing support to improve their systems. Given the limited
capital of many small scale food processors, there is a possibility that noncompliance
could be due to lack of technical standards. Thus, there may be a case to provide support
for improving systems within a reasonable timeframe, failing which penal action may be
initiated.

Penalty Provisions

The DO has the power to issue an 'improvement notice' to any food operator, and suspend
his license in case of non-compliance. Such power at the local level offers scope for
harassment and corruption.
o

Consumer Safeguards
The Bill provides a safeguard for consumers with a provision for Food Recall Procedure.
It states that if a food business operator considers that a food item which it has processed,
manufactured or distributed is not in compliance with the Act, it shall immediately
initiate procedures to withdraw the food in question and inform the competent authority.
The Bill however does not require the food business operator to inform consumers about
a product recall, especially if some of the products have already been sold.

Safeguards for Food Businesses

The Food Safety Officer, while taking food samples for analysis, has to give one part of
the sample to the food business operator to make available to the authorities. Providing
the food business operator with the right to get the sample tested independently from an
accredited laboratory could reduce opportunities for harassment and corruption.
Any customer can get an article of food examined by a Food Analyst. If this sample is
found to be in violation of specified standards, penal action can be initiated. This power
in the hands of the customer can be misused.

Labelling
The Bill does not specify details about labelling, and leaves it to the regulations which
will be issued by the FSSA. However, there is a view that certain items are important
enough to be specified in the Bill such as labels identifying Genetically Modified food
and labels detailing nutrition content in packaged food.

Composition of the FSSA

There are two issues relating to the composition of the FSSA. The first issue relates to the
representation of the Authority. One could argue that there should be a wider representation from
various industry sectors (such as fruit and vegetables; meat and poultry products; milk and milk
products; marine products; pickles and jams) as well as from restaurants and street vendors. A
counterpoint is that a regulatory body should not have direct representatives from the businesses
that it regulates in order to reduce possibility of conflict of interest, and there should be only
independent experts and civil servants in the Authority (similar to regulatory bodies such as
Securities and Exchange Board of India, Telecom Regulatory Authority of India, and Insurance
Regulatory and Development Authority). Similar arguments can be made with respect to the
composition of the Central Advisory Committee, which comprises two representatives each from
the food industry, consumers, agriculture, and relevant research bodies in addition to all 35 state
Food Commissioners.
The second issue is whether all members should be whole time members, given the substantive
nature of the responsibilities. This applies, in particular, to the central government representatives
who are ex-officio members with additional responsibilities.

Finances
The Financial Memorandum of the Bill estimates non-recurring capital expenditure of Rs 3 crore
and further recurring expenditure of Rs 7 crore per annum towards salaries, allowances, rent for

office accommodation etc. The Bill mentions that the FSSA would charge a fee from licensed food
operators and accredited food laboratories. However, the question remains whether the funds
would be sufficient to maintain the infrastructure required to implement the provisions of this Bill,
which include setting up laboratories, training food safety officers and running awareness/training
programmes for food business operators and consumers.
The Financial Memorandum does not specify whether the cost of implementing and enforcing the
provisions of the Bill would be different from the existing system under the Prevention of Food
Adulteration Act of 1954 (PFA Act). A comparison of the cost of enforcement under PFA Act and
the new system proposed by this Bill would be useful in estimating the net cost implications of
this Bill.
It appears that the cost of enforcement would be borne by state/Union Territories governments. It
would be useful to estimate the cost that would be incurred by state governments for setting up the
required system.
M R Madhavan and Kaushiki Sanyal 19 Feb 2006
M R Madhavan and Kaushiki Sanyal are researchers with Parliamentary Research Service, a unit of the
Center for Policy Research in New Delhi. PRS is an independent initiative to make the process of lawmaking in India more transparent, better informed and participatory. PRS has drawn upon, and gratefully
acknowledges, a number of experts and stakeholders who generously shared their opinions on this Bill.
Written comments on the Bill from PL Kaul (All India Food Processors' Association), Bejon Misra
(Consumer Voice) and Malini Rajendran (Federation of Hotel and Restaurant Associations of India) are
available with PRS.
Notes
1.

2.

This Brief has been developed on the basis of the Food Safety and Standards Bill, 2005 introduced
in Lok Sabha on August 25, 2005. The Bill has been referred to the Standing Committee on
Agriculture (Chairperson: Prof. Ram Gopal Yadav) which is scheduled to submit its report to
Parliament by February 21, 2006.
In 1995, the Ministry of Health constituted a Task Force under the chairmanship of E.S.
Venkataramaiah. In 1998, the Prime Minister's Council on Trade and Industry appointed a Subject
Group on Food and Agro Industries.

3.

A similar recommendation was made by the Joint Parliamentary Committee on Pesticide Residue
in and Safety Standards for Soft Drinks, Fruit Juices and Other Beverages, constituted in 2003.

4.

The Codex Alimentarius Commission was created in 1961/62 by Food and Agriculture
Organization (FAO) and the World Health Organization (WHO) of the United Nations, to develop
food standards, guidelines and related texts such as codes of practice under the Joint FAO/WHO
Food Standards Programme. The main purpose of this Programme is to protect the health of
consumers, ensure fair practices in the food trade, and promote coordination of all food standards
work undertaken by international governmental and non-governmental organizations.

5.

For instance, Kolkata has approximately 1.3 lakh street food vending stalls according to Indira
Chakravarty and C. Canet, Street Food in Calcutta, FAO/Rome, 1995 (see study at
http://www.fao.org/docrep/W3699T/w3699t06.htm)

6.

The Policy aims to promote an environment for earning livelihoods to street vendors while
ensuring absence of congestion and maintenance of hygiene. This is proposed through a
combination of creation of hawking zones, fee-based regulation of access (instead of discretionary
licenses), legalising their status, promoting self-compliance and setting up participatory
mechanisms with representation from vendor organisations, police, local residents etc.

7.

Refer Indira Chakravarty and C. Canet, referred in Note 5

8.

Sharit K. Bhowmick, Street Vendors in Asia: A Review, (Economic and Political Weekly), May 28June
4,
2005,
pp.
2259-60
(see
http://www.wiego.org/papers/2005/unifem/4_Bhowmik_Asian_Hawkers_EPW.pdf)

9.

Vision, Strategy and Action Plan for Food Processing Industries in India Vol.1, pp 73-74, Prepared
by Rabo India Finance Pvt. Ltd. for Ministry of Food Processing Industries, GOI, April 2005. (see
http:// mofpi.nic.in/visdoc/volume1.pdf

Food Safety Standards and Codex

India has made significant strides over the past several decades in food production and in
the export and health sectors. India is number one in the production of milk, sugarcane,
cashew and spices and the second largest producer of rice, wheat, pulses, fruits (after
Brazil) and vegetables (after China). But the share of the global export basket is less than
three per cent. There are several key issues that require attention. These include the lack
of institutional coordination, a shortage of technical skills and equipment, the lack of
updated standards, an absence of a responsive monitoring system, the lack of awareness
of safety and quality control issues on the part of the food handlers in the organized and
unorganized sectors of this industry, an increasing incidence of food-borne diseases, the
emergence of newer vibrant pathogens, the entry of Genetically Modified (GM) food and
an increased import of food products following the setting up of the WTO. The base for
research and development as well as for up-to-date information systems is weak and also
requires support. There is a further need for a quick flow of information from the
Center to states and vice-versa.
Why food safety standards required?

International food trade is a highly complex, technical and administrative operation

involving the global movement of a very large quantum and variety of food. Food
production is scientifically-based. It is possible to transport food over long distances to
arrive at its destination in a wholesome condition, without an appreciable loss of quality.
Consumers worldwide now have access to a wider variety of high quality food in greater
quantities than ever before. Two other developments have also contributed significantly
to the increase in both, the quantity and variety of food moving in international trade. The
first has been the dramatic increase in the number of countries, especially developing
countries, involved in the production of food for export. The second has been the
internationalization of food tastes and habits. The first is associated with economic
development, commercial strategy and the acquisition of valuable foreign exchange. The
second is associated with the people of different countries developing a liking for each
others food.
In order to be a successful food exporter, a country must produce food that is acceptable
to consumers in other countries and which complies with the statutory requirements of
the importing countries. Compliance with the statutory or mandatory requirements of
importing countries is an unavoidable and essential prerequisite to successful and
profitable food export. However, compliance is becoming increasingly demanding
because of the preoccupation of the world community with food safety. In addition, an

increasing number of importing countries are demanding agreed inspection and

examination procedures as well as certification by the governments of exporting
countries that products are in compliance with the quality and safety requirements.
What is Codex Alimantarius Commission?
The Codex Alimentarius (meaning Food Code or Food Law in Latin) is a collection of
food standards, Codes of Practices and other recommendations presented in a uniform
way. Codex standards, guidelines and other recommendations ensure that food products
are not harmful to the consumer and can be traded safely between countries.
In the post-World War years of the 1940s and 1950s, the situation led to a plea from both,
exporters and governments, to harmonize national food laws and regulations of all
countries so as to free-up trade. Several unsuccessful attempts were made to standardize
food internationally and, thereby, harmonize food requirements globally. Finally these
attempts lead to the establishment of the Codex Alimentarius Commission (CAC) in 1962
by the Food and Agriculture Organization of the United Nations (FAO) and the World
Health Organization (WHO) to implement the joint FAO/WHO Food Standards Program.
In brief, the purpose of the Program is to protect the health of consumers, ensure fair
practices in the food trade and coordinate international food standardization work. The
CAC is an intergovernmental body, with 168 Member Governments.
General Overview of Codex:
The Codex Alimentarius Commission (CAC) provides global leadership in every aspect
of food standardization and coordinates and crystallizes expert opinion and evidence
relating to consumer safety and practices in the production and sale of food. It is now
customary for food legislators, controllers, scientists, consumers and traders everywhere
to ask the question, before making decisions: What does Codex have to say on the
matter?
Food safety standards are defined in the World Trade Organizations (WTOs) Agreement
on the Application of Sanitary and Phytosanitary Measures (SPS) as those relating to
food additives, veterinary drug and pesticide residues, contaminants, methods of analysis
and sampling, labeling, and codes and guidelines of hygienic practices. Codex food
safety standards are to be used as the reference point for the World Trade Organization in
this area.
Food hygiene has been a major area of activity of the CAC since the Commissions
establishment. The Codex Committee on Food Hygiene, hosted by the Government of the
United States, was established in1963. As food hygiene is best regulated at the production
and processing stage in the exporting country, the Committees main outputs have been
codes of hygienic practices rather than end-product microbiological standards. Taking
this philosophy a step further, the CAC has adopted the Guidelines for the Application of
the Hazard Analysis Critical Control Point (HACCP) System through its Committee on
Food Hygiene. In doing this, it has recognized the HACCP as a tool to assess hazards and
establish control systems that focus on preventive measures, instead of relying primarily
on end-product testing.

National Codex Contact Point (NCCP)

The National Codex Contact Point is the central point for liaison between Codex national
authorities in Member Countries and the Codex Secretariat at the FAO Headquarters. It
serves as the initial recipient of Codex documents, publications and other
communications; maintains a library of Codex standards, Codes of Practice and
guidelines, together with associated documents and, where appropriate, initiates positive
action to stimulate the knowledge of, and interest in the aims, objectives and work of the
CAC and its subsidiary bodies.
National Codex Committees (NCC)

National Codex Committees have been established in many Codex Member Countries to
provide a forum for the discussion of Codex issues, draft standards, Codex and other
documents and establish a national position on all matters discussed within Codex. They
supplement the work of the NCCPs and seek the involvement of all stakeholders,
including government institutions, academia, industry and consumer organizations
HACCP
HAZARD ANALYSIS CRITICAL CONTROL POINT (HACCP)
Hazard Analysis and Critical Control Point (HACCP) is a process control system
designed to identify and prevent microbial and other hazards in food production. It
includes steps designed to prevent problems before they occur and to correct deviations
as soon as they are detected. Such preventive control system with documentation and
verification are widely recognized by scientific authorities and international organizations
as the most effective approach available for producing safe food.
HACCP involves a system approach to identification of hazard, assessment of chances of
occurrence of hazards during each phase, raw material procurement, manufacturing,
distribution, usage of food products, and in defining the measures for hazard control. In
doing so, the many drawbacks prevalent in the inspection approach are provided and
HACCP overcomes shortcomings of reliance only on microbial testing.
HACCP enables the producers, processors, distributors, exporters, etc, of food products
to utilize technical resources efficiently and in a cost effective manner in assuring food
safety. Food inspection too would be more systematic and therefore hassle-free. It would
no doubt involve deployment of some additional finances initially but this would be more
than compensated in the long run through consistently better quality and hence better
prices and returns.

HACCP CERTIFICATION
BIS offers two Certification schemes to the food industry.
i) HACCP Stand-alone Certification against IS 15000:1998
ii) HACCP based Quality System Certification provides for two Certification through one
audit Certification of Quality System against IS/ISO 9000 and Certification of HACCP
against IS 15000:1998
HOW TO OBTAIN LICENCE?
Establish a documented quality system and /or HACCP implementation plan and ensure
its effectiveness.
Submit application on prescribed proforma (Form IV) along with the questionnaire (Form
XII) and necessary fees to Dy. Director General (of respective region).
Submit the quality manual and/ or concerned documents, when asked for.
Arrange audit by BIS Assessment Team.
Take actions on non-conformities observed by assessment team and get them verified. If
found satisfactory, grant of licence is recommended.
Obtain the License.
The license will enable the company to compete effectively in national and international
markets.
PRINCIPLES OF THE HACCP SYSTEM
The HACCP system consists of the following seven principles:
Principle 1: Conduct a hazard analysis.
Principle 2: Determine the Critical Control Points (CCPs).
Principle 3: Establish critical limit(s).
Principle 4: Establish a system to monitor control of the CCP.
Principle 5: Establish the corrective action to be taken when monitoring indicates that a
particular CCP is not under control.
Principle 6: Establish procedures for verification to confirm that the HACCP system is
working effectively

Principle 7: Establish documentation concerning all procedures and records appropriate

to these principles and their application.
GUIDELINES FOR THE APPLICATION OF THE HACCP SYSTEM
Prior to application of HACCP to any sector of the food chain, that sector should be
operating according to the Codex General Principles of Food Hygiene, the appropriate
Codex Codes of Practice, and appropriate food safety legislation.
Management commitment is necessary for implementation of an effective HACCP
system. During hazard identification, evaluation, and subsequent operations in designing
and applying HACCP systems, consideration must be given to the impact of raw
materials, ingredients, food manufacturing practices, role of manufacturing processes to
control hazards, likely end-use of the product, categories of consumers of concern, and
epidemiological evidence relative to food safety.
The intent of the HACCP system is to focus control at Critical Control Points (CCPs).
Redesign of the operation should be considered if a hazard which must be controlled is
identified but no CCPs are found.
HACCP should be applied to each specific operation separately. CCPs identified in any
given example in any Codex Code of Hygienic Practice might not be the only ones
identified for a specific application or might be of a different nature.
The HACCP application should be reviewed and necessary changes made when any
modification is made in the product, process, or any step.
It is important when applying HACCP to be flexible where appropriate, given the context
of the application taking into account the nature and the size of the operation.
BENEFITS OF HACCP
In addition to assurance of food safety and improved relationship with regulatory
agencies, HACCP provides potential economic benefits, including:
1.

Reduced direct costs by substantially reducing the need to destroy finished product for
food safety reasons.

2.

Enhanced marketability of products, especially in light of increasing concerns for food

safety by domestic and international customers and consumers, and
3.
The significant reduced likelihood of the need for a product recall and a quick,
effective recall if one become necessary.

The Hindu, Today's Paper

NEW DELHI, August 5, 2011

Food Safety Act takes effect from today

Aarti Dhar
Initiating a new era in food safety, the Food Safety and Standards Act of 2006 will
come into force across the country from Friday making it at par with the international
standards. It will ensure improved quality of food for the consumers and censure
misleading claims and advertisement by those in food business.
The Food Safety and Standards Authority of India (FSSAI), established under the
overarching legislation, will lay down science based standards for food items and
regulate their manufacture, storage, distribution, sale and import to ensure availability of
safe and wholesome food for human consumption. As many as 22 States and Union
Territories now have Food Commissioners in place as required under the Act, while seven
are expected to do so by the time it is enforced.
The Food Safety and Standards Act, 2006 which comes into effect five years after it was
passed in Parliament, subsumes various central Acts like Prevention of Food Adulteration
Act of 1954 , Fruit Products Order of 1955, Meat Food Products Order of 1973,
Vegetable Oil Products (Control) Order of 1947, Edible Oils Packaging
(Regulation)Order of 1988, Solvent Extracted Oil, De- Oiled Meal and Edible Flour
(Control) Order of 1967, Milk and Milk Products Order of 1992 and also any order issued
under the Essential Commodities Act, 1955 relating to food. It will ensure prevention of
fraudulent, deceptive or unfair trade practices which may mislead or harm the consumer,
and unsafe, contaminated or sub-standard food.
Talking to reporters here, V.N. Gaur, Chief Executive Officer of FSSAI, said the Food
Safety and Standards Authority will broadly frame regulations to lay down the standards
and guidelines for food items and specify an appropriate system of enforcing various
standards. It will specify mechanisms for accreditation of certified bodies engaged in
certification of food safety management system for food businesses, and procedures for
accreditation of laboratories.
Biological risk
The FSSAI, set up in 2008, will collect and collate data regarding food consumption,
incidence and prevalence of biological risk, residues of various contaminants in foods
products, identification of emerging risks and introduction of rapid alert system. The data
will help in the implementation of the proposed Food Security Bill and also contribute to
the development of international technical standards for food, sanitary and phyto-sanitary
standards.

While the FSSAI will be based in New Delhi, the states will have a Food Safety
Commissioner, and the SDM who will be the designated office at the district level to
issue licenses along with the Food Safety Officers (Food Inspectors) who have been
trained for their new roles.
According to Mr. Gaur, while defining the roles of food business operators and regulator
(FSSAI), the Act has provision for compounding offences (except for which punishment
is prescribed), adjudication and trials in Appellate Tribunals and special courts, including
summary trials. The time limit for prosecutions has also been fixed. The trial has to start
within a year from the date of commission of offence. As of now, more than one lakh
cases related to food standard offences are pending in various courts across the country.
The four major food-testing laboratories have been taken over by the Authority and it is
in the process of acquiring two more. But the bigger challenge before the government is
to upgrade the 72-odd food testing laboratories at the State level which are woefully
inadequate for the modern requirements particularly in the wake of India being a
signatory in the WTO. The Authority proposes to grant Rs. 5 crore each for the
strengthening of these laboratories under the 12 {+t} {+h} Five Year Plan.
Food Quality Problems
Earliest recorded problem
Poisoning through lead water pipes in Rome
Irish potato famine of 1845-46
Fungal disease in potato causes million deaths
Louis Pasteur, 1861.
Develops Pasteurization technique to overcome food spoilage
Later, unhindered development of food science
Until . . .
Rachel Carsons book, Silent Spring
Brought out bad effects of pesticides DDT banned
Microbial, and toxic contamination
Effects of irradiation, and fatty and low-fibre foods
Global Initiatives
While food technology was improving, safety concerns were being raised, and food laws being
enacted
International trade in agricultural commodities and (processed) food products was on the rise since
1950s onwards.
There was a need for Harmonized standards for the traded food products
Response resulted in establishment of
Codex 1962
WTO 1995
ISO 22000
Codex Alimentarius Commission
In Latin, Codex = Law, Alimentarius = Food
Hence, it is a Food Law Commisson
Set up by WHO & FAO in 1962:
World Health Organization
Food and Agricultural Organization
Aim:
To protect health of consumers worldwide
To guide food industry in defining standards

Promote harmonization of standards and facilitate international trade

Standards for labelling, nutritional labelling, and HACCP guidelines drawn in 1981,
1983, and 1993 respectively

Food Safety and Standards Authority of India, New Delhi

A Statutory Regulatory Body under Ministry of Health & Family Welfare, Government of India
Constituted on 5 Sep 2008
Mandate of laying down science based standards for articles of food and to regulate their
manufacture, storage, distribution, sale and import to ensure availability of safe and wholesome
food for human consumption.
Need of the Food Safety and Standards Act, 2006
Multiplicity of food laws, standards setting and enforcement agencies for different sectors of food
Varied Quality/Safety standards restricting innovation in food products
Thin spread of manpower, poor laboratories infrastructure and other resources restricting fixation
of effective standards
Standards are rigid and non-responsive to scientific advancements and modernization
Investor adversary Regulatory Mechanism
Poor Information dissemination level to consumer level
Existing Acts, Rules and Orders

Health & Food Processing

The Prevention of Food Adulteration Act, 1954
Fruits and Vegetable Products (Control) Order- FPO 1955
Meat Food Products Order (MFPO)1973

Consumer Affairs, Food and Public Distribution

Essential Commodities Act, 1955

Bureau of Indian Standards Act, 1986
Standards of Weights and Measures Act, 1976
The Consumer Protection Act, 1986
Standards of Weights and Measures (Enforcement) Act, 1985
Vegetable Products Control Order, 1976
Solvent Extracted Oil, De-oiled Meal and Edible Flour Control Order, 1967
Edible Oils Packaging (Regulation) Order, 1988
Commerce and Industry
Marine Products Export Development Authority Act, 1972
Export (Quality Control and Inspection) Act, 1963
Foreign Trade (Development and Regulation) Act, 1992
The Agricultural and Processed Food Products Export Development Authority Act, 1985

Agriculture and marketing

Agriculture Produce (Grading & Marking)Act,1937

General Grading & Marking Rules 1988
Insecticides Act, 1968
Milk and Milk Products Control Order,1992
Thrust of the New Act
Prevention of Food Adulteration Act, 1954
Fruit Products Order, 1955
Meat Food Products Order, 1973
Vegetable Oil Products (Control) Order, 1947
Solvent Extracted Oil, De-oiled Meal and Edible Flour (Control) Order, 1967

Milk and Milk Products Order, 1992

Any order under Essential Commodities Act, 1955 relating to food

Movement from multi-level and multi- department control to a single line of command
FSSAI as a single reference point for all matters relating to Food Safety and Standards,
Regulations and Enforcement
Integrated response to strategic issues like Novel foods, GM foods, international trade etc
Decentralisation of licensing for food products
Achieve high degree of consumer confidence in quality & safety of food
Effective, transparent and accountable regulatory framework
Investors friendly regulatory mechanism with emphasis on self regulations and capacity
building
Emphasis on gradual shift from regulatory regime to self compliance
Consistency between domestic and international food policy measures with out reducing
safeguards to public health and consumer protection
Adequate information dissemination on food to enable consumer to make informed
choices.
Mechanism for speedy disposal of cases

Structure for implementation of the Act

COURTs

FOOD AUTHORITY
CHIEF EXECUTIVE
OFFICER

EXISTING
ENFORCEMENT

FSSAI
(proposed)
CHIEF SCIENTIFIC
ADVISOR
CHIEF
SURVEILLANCE
OFFICER

CHIEF
ENFORCEMENT
OFFICER
CHIEF,PRODUCT
APPROVALS/ QUALITY
ASSURANCE

CHIEF
MANAGEMENT
OFFICER

STATE
GOVERNMENTs /UTs

ZONAL
OFFICES

ZONAL
DIRECTO
R

COMMISSIONE
R OF FOOD
SAFETY

DESIGNATED
OFFICER
(District level)

CITY/
MUNICIPAL
COMMITTEE
S

HEALTH
OFFICER

OTHER
OFFICERS
FOOD SAFETY
OFFICER
(Local area)

FOOD
INSPECTOR/
HEALTH
INSPECTOR/
SANITARY
INSPECTOR

16

Role of FSSAI and other authorities

Framing of Regulations, Standards and guidelines in relation to articles of food
Guidelines for accreditation of certification bodies/ Laboratories
Scientific advice and technical support to the Central Government and State
Governments in matters of framing the policy and rules in areas related to food safety
and nutrition

Collect and collate data on food consumption, Incidence and Prevalence of biological
risk, Contaminants in food, Residues of contaminants in food and introduction of rapid
alert system
Procedure and guidelines for Risk Analysis methodologies
Creating Information Dissemination Network across the country about food safety
Capacity Building for various stakeholders
Contribute to development of International Technical Standards for food Sanitary and
Phyto-sanitary Standards
Promote general awareness about Food Safety and Food Standards

Preface
India is a signatory to WTO and an active member of Codex Alimentarius commission
and other international treaties governing food trade. According to the constitution of
India and within the framework of international treaties, India is a sovereign nation and
can frame its own regulations to govern its economy and also protect and address its
legitimate interests and concerns as well. Most of the Indias agriculture and food
regulations are inline with international guidelines but may not be the same as their
trading partners including Canada. This study is covering provisions, which are
regulating trade in agriculture and food sector with Canada.
Central as well as state government has authority to frame the laws to protect the interests
of citizens. In most of the cases, central government can frame the laws but
implementation of the law is in the hand of the state governments. At the same time State
governments are also empowered to make similar laws to address the needs of the local
situations.
As far as food trade is concerned, central government has enacted large number of
regulations to monitor the trade practices and quality of the food available to the citizens,
the implementation and enforcement of the law is in the hand of state agencies.
There are many mandatory regulations and voluntary standards in the food trade in India.
While doing trade with India, exporters must understand various legal provisions because
any product sold in India must comply with the legal provisions applicable in India.
In this document we are highlight the regulations and their approach for governing food
import from Canada into India territory.
Various chapters of this document cover specific provisions affecting trade with India.
We are also providing the important website links so that while doing trade with India
exporters must check the latest update on the various provisions in the law.

EXECUTIVE SUMMARY
This Study on Indian Food Laws is prepared on the request of Canadian High
Commission at New Delhi. Great care was taken in its preparation to include the latest
modifications in the laws related to food trade and biotechnology policy. As you know

policies and rules keep changing so this information may not be entirely accurate either
because policies may have changed since the report was written, or because clear and
consistent information is unavailable. It is highly recommended that Canadian exporters
verify import requirements with their foreign customers before goods are shipped. Final
import approval is always subject to the importing countrys rules and regulations as
interpreted by border officials at the time of product entry.
Food Related Laws
All notifications related to trade in food products from and into India are issued by
Director General of Foreign Trade (DGFT). These notifications reflect Export Import
Policy or Trade Policy of India and also the notifications issued by various concerned
departments. It is important to understand overall Import-Export policy of India while
developing trading relations with India in any sector including food products. Currently
there are more than fifteen laws relating to food, which are administered by a number of
different Ministries and Departments of the Government of India. Among the more
important food laws are:
Prevention of Food Adulteration Act (PFA) of 1954 and the PFA Rules of 1955
The objective of this law to protect the nation against impure, unsafe, and fraudulently
labeled foods and is amended from time to time. PFA standards and regulations apply
equally to domestic and imported products. The PFA covers various aspects of food
formulation, food processing and distribution, such as food standard, food color,
preservatives, pesticide residues, packaging and labeling, and regulation of sales. The law
is enforced by the Director General of Health Services, Ministry of Health and Family
Welfare, Government of India (GOI). The PFA focuses primarily on the establishment of
regulatory standards for primary food products, which constitute the bulk of the Indian
diet. The PFA is not always able to keep pace with advances in the food processing sector
because of various social and administrative issues. PFA rules sometimes appear to be
drafted in a manner to establish minimum product quality specifications, such as
prescribing recipes for how food products should to be manufactured. In case there are
scientific reasons to amend the standards, the concerned parties can appeal to have the
PFA Rules amendments. Under PFA, the Central Committee for Food Standards, chaired
by the Director General of Health Services, is the final decision making entity on PFA
rules. The appeals process is cumbersome and time consuming. All imported products
must adhere to the rules as specified in the regulation, including the labeling and marking
requirements.
The Standards of Weights and Measures Act, 1976, and Standards of Weights and
Measures (Packaged Commodities) Rule, 1977
These legislative measures are designed to establish fair trade practices with respect to
packaged commodities. The rules aim to ensure that the basic rights of consumers
regarding vital information about the nature of the commodity, the name and address of
the manufacturer, the net quantity, date of manufacture, and maximum sale price are
provided on the label. Besides Standards of Weights and Measures Act, 1976, and
Standards of Weights and Measures (Packaged Commodities) Rule, 1977, there are

additional labeling requirements for food items covered under the PFA Act and Rules.
The Department of Consumer Affairs in the Ministry of Consumer Affairs, Food, and
Public Distribution is the regulatory authority for the Standards of Weights and Measures
Act, 1976, and Standards of Weights and Measures (Packaged Commodities) Rule, 1977
and subsequent notifications. Importers of packaged food products must adhere to these
acts, including labeling the product. The name and address of the importer, the net
quantity, date of manufacture, best-before date, and maximum sale price must be
included on the label.
The Fruit Products Order, 1955
The fruit and vegetable processing sector is regulated by the Fruit Products Order, 1955
(FPO), which is administered by the Ministry of Food Processing Industries. The FPO
contains specifications and quality control requirements regarding the production and
marketing of processed fruits and vegetables, sweetened aerated water, vinegar, and
synthetic syrups. All such processing units are required to obtain a license under the FPO,
and periodic inspections are carried out. Processed fruit and vegetable products imported
into the country must meet the FPO standards. Please Note: In case of variation in the
product standard between the Fruit Products Order, 1955 and PFA Rule, the PFA rule will
apply.
Meat Food Products Order, 1992
This order administers the permissible quantity of heavy metals, preservatives, and
insecticide residues for meat products. The new regulatory authority for this order is
Ministry of food processing Industries. This order is equally applicable to domestic
processors and importers of meat products. However, its implementation is weak due to
unorganized production in the domestic market and few imports.
Livestock Importation Act, 1898
Under the Livestock Importation Act, 1898, the government laid down procedures for the
importation of livestock and products to India, which is implemented by the Department
of Animal Husbandry and Dairying, Ministry of Agriculture. Under this act, any importer
importing any livestock product needs prior permission based on sanitary status of the
country of origin and type of product.
Milk and Milk Products Order, 1992
This order regulates the production, distribution, and supply of milk products; establishes
sanitary requirements for dairies, machinery, and premises; and sets quality control
standards for milk and milk products. Standards specified in the order also apply to
imported milk products. The Department of Animal Husbandry and Dairying, Ministry of
Agriculture, is the regulatory authority for this order. Plant Quarantine (Regulation of
Import into India) Order, 2003 Under the Destructive Insects and Pests Act, 1914, the
GOI formulated the Plant Quarantine (Regulation of Import into India) Order, 2003. It
was published on November 18, 2003, with the purpose of prohibiting and regulating
imports of agricultural products into India. The implementing agency is the Directorate of

Plant Protection, Quarantine, and Storage, under the Department of Agriculture and
Cooperation, Ministry of Agriculture. Based on the feedback and experience this act is
amended from time to time.
Labeling Requirements for Food Products
Part VII of the PFA Rules, 1955, and the Standards of Weights and Measures (Packaged
Commodities) Rules, 1977, as amended, lay down labeling requirements for all packaged
foods. The label should provide the information related to Name, trade name or
description contained in the package, Name of ingredients used in the product in
descending order of their composition by weight or volume, Name and complete address
of manufacturer, packer, importer, or vendor, and country of origin of the imported food
(if the food article is manufactured outside India and packed in India), Net weight,
number, or volume of contents, Distinctive batch, lot, or code number, Month and year
the product was manufactured or packed, Month and year by which the product is best
consumed, Maximum retail price (MRP).
Where applicable, the product label should also contain the information like, The purpose
of irradiation and license number, in case of irradiated food, Extraneous addition of
coloring matter, Non-vegetarian food (any food which contains whole or part of any
animal including birds, fresh water or marine animals, eggs, or product of any animal
origin as an ingredient, not including milk or milk products), must have a symbol of a
brown colorfilled circle inside a square with a brown outline to be prominently displayed
on the package, contrasting against the background on the principal display panel, in
close proximity to the name or brand name of the food. Vegetarian food must have a
symbol of a green color-filled circle inside a square with a green outline to be
prominently displayed on the package, contrasting against the background on the
principal display panel, in close proximity to name or brand name of the food.
Every package of food which contains permitted artificial sweetener shall carry the label
CONTAINS ARTIFICIAL SWEETENER AND FOR CALORIE CONSCIOUS along
with the name or trade name of the product. There are special labeling requirements for
certain packaged food items, such as infant foods, condensed milk, milk powder, blended
vegetable oils, etc. In the case of imported packaged food, all declarations: 1) may be
printed on a label securely affixed to the package; or 2) may be made on an additional
wrapper containing the imported package; or 3) may be printed on the package itself; or
4) may be made on a card or tape affixed firmly to the package or container and bearing
the required information prior to customs clearance. Labels must be printed in English or
Hindi (Devnagari script). The responsibility for labeling lies with the importer and should
be done before products are presented for custom clearance.
All packaged commodities imported/exported in India should carry the following
declarations:
Name and address of the importer, Generic or common name of the commodity packed,
Net quantity using standard units of weights and measures. If the net quantity of the
imported package is given in any other unit, its equivalent terms of standard units shall be
declared by the importer, Month and year of packaging in which the commodity was

manufactured, packed, or imported, The MRP at which the commodity in packaged form
may be sold to the ultimate consumer. This price shall include all taxes, local or
otherwise, freight, transport charges, commission payable to dealers, and all charges
towards advertising, delivery, packing, forwarding, and the like.
Residual Shelf Life of the Imported Product:
"Imports of all such edible/food products, domestic sale and manufacture of which are
governed by the PFA shall also be subject to the condition that, at the time of importation,
these products are having a valid shelf life of not less than 60 percent of its original shelf
life. Shelf life of the product is to be calculated, based on the declaration given on the
label of the product, regarding the date of manufacture and the due date of expiry."
Requirements Specific to Nutritional Labeling
Implied nutritional and health claims are allowed on food products. However, there are
no statutory nutritional requirements. Manufactured and imported food stuffs claiming to
be enriched with nutrients such as minerals, proteins, or vitamins, should indicate
quantities of such added nutrients on the label. Although there is no official position on
implied and/or health claims, such claims should be able to withstand verification by a
court of law, if challenged.
Packaging and Container Requirements
All weights or measures are to be reported in metric units. Certain commodities can only
be packed in specified quantities (weight, measure, or number). These include baby food,
weaning food, biscuits, bread, butter, coffee, tea, vegetable oils, milk powder, and wheat
and rice flour. Use of materials such as Polyvinyl Chloride (PVC) is not allowed in
packaging in most cities, due to environmental concerns and waste disposal
problems.
Food Additive Regulations
Information regarding permitted coloring matter, preservatives, etc., are provided in
various sections of the PFA Rules, 1955, as amended, which are listed under various
heads of PFA rules like Coloring Matter, Preservatives, Poisonous metal, Anti-Oxidants,
Emulsifying, Stabilizing, and anti-caking Agents, Flavoring agents and related
Substances, Sequestering and buffering agents, Food Additives. Imported processed
foods containing coloring matter, preservatives, food additives, etc. should conform to the
regulations contained in the PFA rules, 1955. PFA Act also prohibits the sale of fresh
fruits and vegetables coated with waxes (both edible and non-edible), mineral oils, and
colors.
Pesticides and Other Contaminants
The PFA Rules, 1955, include a positive list for the presence of pesticide residues in
various commodities and food (manufactured/imported) products, and their respective

tolerance levels. The CODEX MRLs may be accepted for imported foodstuffs only for
those pesticides not included in Indias positive list of pesticides.
Other Regulations and Requirements for Imported Food products
Product registration is not required for imported products. All imported foods are
randomly sampled at the port of entry for their conformity to PFA standards. The
Ministry of Commerce and Industry published a list of high risk food items, imports of
which will be subject to 100 percent sampling with immediate effect. The list includes
edible oils and fats, pulses and pulse products, cereal and cereal products, milk powder,
condensed milk, food colors, and food additives, among other items. The import of
product samples via express mail or parcel post is allowed, contingent on obtaining prior
permission from the Directorate General of Foreign Trade. Mail order imports are not
allowed. Once the products enter the domestic market, they are to be monitored randomly
at the retail/wholesale level by the respective regulatory authorities.
Import of Bioengineered Products:
The Genetic Engineering Approval Committee (GEAC) is the decision making authority
on
allowing
imports
of
bioengineered
products.
Food
ingredients and additives containing bioengineered organisms, shall not be produced,
used, or imported without the approval of the GEAC. All such approvals, if granted, shall
be for a specific period not exceeding four years at the first instance, and renewable for 2
years at a time, subject to terms and conditions.
Product Specific Food Standards
Appendix B of The PFA Rules, 1955 and the Fruit Products Order, 1955, as amended,
contain definitions and specific quality standards for certain food products, such as
processed cheese, ice cream, spice mixes, milk and milk products, infant food, vegetable
oils and margarine, fruits and vegetable products, and basic food items like wheat, rice,
and pulses. Imported products must also meet the specified quality standards as specified
in these rules and orders.
Mandatory BIS Certification on Sensitive Food Products:
Department of Commerce Notification No. 44 (RE-2000)/1997-2002, dated November
24, 2000, requires imports of certain products, including some food products (milk
powder, condensed milk, infant milk foods, milk-cereal based weaning foods) and food
additives, to comply with mandatory Indian quality standards. All manufacturers and
exporters whose products are sold in India are required to register with the Bureau of
Indian Standards.
IPR Protection i.e. Copyright and/or Trademark
Indian law is supposed to provide rigorous protection for copyrighted material. The
Indian
Copyright
Act
of
1957
is
based
on
the
Bern
Convention on Copyrights, to which India is a party. May 1995 and December 1999

amendments
increased
protection
and
introduced
stiff
mandatory penalties for copyright infringement. Trademark protection was raised to
international standards with the passage of a new Trademark Bill in December 1999. It
codified the use and protection of foreign trademarks, including service marks. The
foreign trademarks are recognized in India. Foreign firms can register their trademarks
through a local agent by applying at the office of Registrar of Trademarks. However, it
may take 2-3 years for the trademark to be officially accepted and notified.
Documentation for Import:
Importers are required to furnish an import declaration in the prescribed Bill of Entry
format, disclosing full details of the value of imported goods. This must be accompanied
by any import licenses and phytosanitary certificates (in case of agricultural
commodities), along with documentation such as sales invoices and freight and insurance
certificates. All consignments are required to be inspected prior to clearance. In the
current Customs set-up, appointing a clearing agent avoids delays. The clearance of
imported food products at the port of entry requires a certification from the port health
authority that the product conforms to the standards and regulation of the PFA or other
relevant laws and rules. However, certification is based mostly on visual inspection and
records of past imports, as most ports have very limited testing facilities and storage
infrastructure. Consequently, importers of new products can sometimes face undue delays
in clearing their products. The custom clearance period may vary from one day to one
month, depending on the product and experience of the importer. In case of a dispute or
rejection of the consignment, the importer can file an appeal at the Customs office at the
port of entry.

Chapter 1: General Provisions Regarding Imports From Canada

According to exiting Foreign Trade Policy, the following general provisions will be applicable to all Canadian
traders willing to export to India.
Imports from Canada in to India are free unless regulated
Imports from Canada shall be free, except in cases where they are regulated by the provisions of this Policy or
any other law for the time being in force. The item wise import policy shall be, as specified in Harmonized
Standards for Classification i.e. ITC (HS), published and notified by Director General of Foreign Trade (DGFT),
as amended from time to time.
Compliance with Laws
Every exporter or importer shall comply with the provisions of the Foreign Trade (Development and Regulation)
Act, 1992, the Rules and Orders made thereunder, the provisions of this Policy and the terms and conditions of
any license/certificate/permission granted to him, as well as provisions of any other law for the time being in
force. All imported goods shall also be subject to domestic Laws, Rules, Orders, Regulations, technical
specifications, environmental and safety norms as applicable to domestically produced goods.

Interpretation of Policy
If any question or doubt arises in respect of the interpretation of any provision contained in the Policy, or
regarding the classification of any item in the ITC (HS) or Handbook of Import Export Policy (Vol.1) or
Handbook of Import Export Policy (Vol.2), or Schedule Of DEPB Rate the said question or doubt shall be
referred to the Director General of Foreign Trade whose decision thereon shall be final and binding.
If any question or doubt arises whether a license / certificate / permission has been issued in accordance with the
Policy or if any question or doubt arises touching upon the scope and content of such documents, the same shall
be referred to the Director General of Foreign Trade whose decision thereon shall be final and binding.
Procedure
The Director General of Foreign Trade may, in any case or class of cases, specify the procedure to be followed
by an exporter or importer or by any licensing or any other competent authority for the purpose of implementing
the provisions of the Act, the Rules and the Orders made hereunder and this Policy. Such procedures shall be
included in the Handbook (Vol.1), Handbook (Vol.2), Schedule of DEPB Rate and in ITC (HS) and published by
means of a Public Notice. Such procedures may, in like manner, be amended from time to time. The Handbook
(Vol.1) is a supplement to the Foreign Trade Policy and contains relevant procedures and other details. The
procedures of availing benefits under various schemes of the Policy are given in the Handbook (Vol.1).
Exemption from Policy/ Procedure
Any request for relaxation of the provisions of this Policy or of any procedure, on the ground that there is
genuine hardship to the applicant or that a strict application of the Policy or the procedure is likely to have an
adverse impact on trade, may be made to the Director General of Foreign Trade for such relief as may be
necessary. The Director General of Foreign Trade may pass such orders or grant such relaxation or relief, as he
may deem fit and proper. The Director General of Foreign Trade may, in public interest, exempt any person or
class or category of persons from any provision of this Policy or any procedure and may, while granting such
exemption, impose such conditions as he may deem fit. Such request may be considered only after consulting
Advance Licensing Committee (ALC) and Policy Relaxation Committee.
Principles of Restriction
DGFT may, through a notification, adopt and enforce any measure necessary for:

Protection of public morals.

Protection of human, animal or plant life or health.
Protection of patents, trademarks and copyrights and the prevention of deceptive
practices.
Prevention of use of prison labour.
Protection of national treasures of artistic, historic or archaeological value.
Conservation of exhaustible natural resources.
Protection of trade of fissionable material or material from which they are derived;
and
Prevention of traffic in arms, ammunition and implements of war.

Restricted Goods
Any goods, the export or import of which is restricted under ITC (HS) may be exported or imported only in
accordance with a licence / certificate / permission or a public notice issued in this behalf.
Terms and Conditions of a Licence / Certificate / Permission
Every licence/certificate/permission shall be valid for the period of validity specified in the licence/ certificate/
permission and shall contain such terms and conditions as may be specified by the licensing authority, which

may include:
(a) The quantity, description and value of the goods;
(b) Actual User condition;
(c) Export obligation;
(d) The value addition to be achieved; and
(e) The minimum export price.
Licence/Certificate/ Permission not a Right
No person may claim licence/certificate/ permission as a right and the Director General of Foreign Trade or the
licensing authority shall have the power to refuse to grant or renew a licence/certificate/permission in accordance
with the provisions of the Act and the Rules made there under.
Penalty
If a licence/certificate/permission holder violates any condition of the licence/certificate/ permission or fails to
fulfill the export obligation, he shall be liable for action in accordance with the Act, the Rules and Orders made
there under, the Policy and any other law for the time being in force.
State Trading
Any goods, the import or export of which is governed through exclusive or special privileges granted to State
Trading Enterprise(s), may be imported or exported by the State Trading Enterprise(s) as specified in the ITC
(HS) Book subject to the conditions specified therein. The Director General of Foreign Trade may, however,
grant a licence/certificate/permission to any other person to import or export any of these goods. In respect of
goods the import or export of which is governed through exclusive or special privileges granted to State Trading
Enterprise(s), the State Trading Enterprise(s) shall make any such purchases or sales involving imports or exports
solely in accordance with commercial considerations, including price, quality, availability, marketability,
transportation and other conditions of purchase or sale. These enterprises shall act in a non-discriminatory
manner and shall afford the enterprises of other countries adequate opportunity, in accordance with customary
business practices, to compete for participation in such purchases or sales.
Importer Exporter Code Number
No export or import shall be made by any person without an Importer- Exporter Code (IEC) number unless
specifically exempted. An Importer- Exporter Code (IEC) number shall be granted on application by the
competent authority in accordance with the procedure specified.
Trade with Neighbouring Countries
The Director General of Foreign Trade may issue, from time to time, such instructions or frame such schemes as
may be required to promote trade and strengthen economic ties with neighbouring countries.
Transit Facility
Transit of goods through India from or to countries adjacent to India shall be regulated in accordance with the
bilateral treaties between India and those countries and will be subject to such restrictions as may be specified by
DGFT in accordance with International Conventions.
Actual User Condition
Capital goods, raw materials, intermediates, components, consumables, spares, parts, accessories, instruments
and other goods, which are importable without any restriction, may be imported by any person. However, if such
Imports from Canada require a licence/
certificate/permission, the actual user alone may import such goods unless the licensing authority specifically
dispenses with the actual user condition.

Second Hand Goods

All second hand goods, excepting second hand capital goods, shall be restricted for Imports from Canada and
may be imported only in
accordance with the provisions of this Policy, ITC(HS), Handbook (Vol.1), Public Notice or a
licence/certificate/permission issued in this behalf. Import of second hand capital goods, including refurbished/
reconditioned spares, shall be allowed freely.
Import of samples
Import of samples shall be governed by the provisions given in Handbook (Vol.1).
Import of Gifts
Import of gifts shall be permitted where such goods are otherwise freely importable under this Policy. In other
cases, a Customs Clearance Permit (CCP) shall be required from the DGFT.
Import of Samples and Drawings
Samples of such items that are otherwise freely importable under this Policy may also be imported as part of
passenger baggage without a licence/certificate/permission. Exporters coming from abroad are also allowed to
import drawings, patterns, labels, price tags, buttons, belts, trimming and embellishments required for export, as
part of their passenger baggage without a licence/certificate/permission.
Import on Export basis
New or second hand capital goods, equipments, components, parts and accessories, containers meant for packing
of goods for exports, jigs, fixtures, dies and moulds may be imported for export without a
licence/certificate/permission on execution of Legal Undertaking/Bank
Guarantee with the Customs Authorities provided that the item is freely exportable without any
conditionality/requirement of licence/ permission as may be required under ITC(HS) Schedule II.
Re-import of goods repaired abroad
Capital goods, equipments, components, parts and accessories, whether imported or indigenous, except those
restricted under ITC (HS) may be sent abroad for repairs, testing, quality improvement or up gradation or
standardization of technology and re-imported without a
licence/certificate/permission.
Import of goods used in projects abroad
After completion of the projects abroad, project contractors may import, without a licence/ certificate/
permission, used goods including capital goods provided they have been used for at least one year.
Sale on High Sea
Sale of goods on high seas for import into India may be made subject to this Policy or any other law for the time
being in force.
Import under Lease Financing
Permission of licensing authority is not required for import of new capital goods under lease financing.

Clearance of Goods from Customs

The goods already imported/shipped/arrived, in advance, but not cleared from Customs may also be cleared
against the licence/ certificate/ permission issued subsequently.
Execution of Legal Undertaking (LUT)/Bank Guarantee (BG)
Wherever any duty free import is allowed or where otherwise specifically stated, the importer shall execute a
Legal Undertaking (LUT)/Bank Guarantee (BG)/ Bond with the Customs Authority before clearance of goods
through the Customs, in the manner as may be prescribed. In case of indigenous sourcing, the licence/ certificate/
permission holder shall furnish LUT / BG / Bond to the licensing authority before sourcing the material from the
indigenous supplier/nominated agency. All the exporters who have an export turnover of at least Rupees 5 crore
in the current or preceding licencing year and have a good track record of three years of exports will be exempted
from furnishing a BG for any of the schemes under this Policy and may furnish a LUT in lieu of BG.
Private/ Public Bonded Warehouses for Imports from Canada
Private/Public bonded warehouses may be set up in the Domestic Tariff Area as per the terms and conditions of
notification issued by Department of Revenue. Any person may import goods except prohibited items, arms and
ammunition, hazardous waste and chemicals and warehouse them in such private/public bonded warehouses.
Such goods may be cleared for home consumption in accordance with the
provisions of this Policy and against Licence/certificate/ permission, wherever required. Customs duty as
applicable shall be paid at the time of clearance of such goods. If such goods are not cleared for home
consumption within a period of one year or such extended period as the custom authorities may permit, the
importer of such goods shall re-export the goods.
Free Exports
All goods may be exported without any restriction except to the extent such exports are regulated by ITC(HS) or
any other provision of this Policy or any other law for the time being in force. The Director General of Foreign
Trade may, however, specify through a public notice such terms and conditions according to which any goods,
not included in the ITC(HS), may be exported without a licence/ certificate/ permission.
Export of Samples
Export of samples and Free of charge goods shall be governed by the provisions given in Handbook (Vol.1).
Export of Passenger Baggage
Bonafide personal baggage may be exported either along with the passenger or, if unaccompanied, within one
year before or after the
passenger's departure from India. However, items mentioned as Restricted in ITC(HS) shall require a
licence/certificate/permission.
Export of Gifts
Goods, including edible items, of value not exceeding Rs.5,00,000/- in a licensing year, may be exported as a
gift. However, items mentioned as restricted for exports in ITC(HS) shall not be exported as a gift, without a
licence/certificate/permission.
Export of Imported Goods
Goods imported, in accordance with this Policy, may be exported in the same or substantially the same form
without a licence/certificate/permission provided that the item to be imported or exported is not mentioned as
restricted for import or export in the ITC(HS). Exports of such goods imported against payment in freely
convertible currency would be permitted against payment in freely convertible currency. Goods, including those

mentioned as restricted item for import (except prohibited items) may be imported under Customs Bond for
export in freely convertible currency without a licence/ certificate/ permission provided that the item is freely
exportable without any conditionality/ requirement of licence/permission as may be required under ITC (HS)
Schedule II.
Export of Replacement Goods
Goods or parts thereof on being exported and found defective/damaged or otherwise unfit for use may be
replaced free of charge by the exporter and such goods shall be allowed clearance by the customs authorities
provided that the replacement goods are not mentioned as restricted items for exports in ITC(HS).
Export of Repaired Goods
Goods or parts, except restricted under ITC (HS), thereof on being exported and found defective, damaged or
otherwise unfit for use may be imported for repair and subsequent re-export. Such goods shall be allowed
clearance without a licence/ certificate/permission and in accordance with customs notification issued in this
behalf.
Private Bonded Warehouses for Exports
Private bonded warehouses exclusively for exports may be set up in DTA as per the terms and conditions of the
notifications issued by Department of Revenue. Such warehouses shall be entitled to procure the goods from
domestic manufacturers without payment of duty. The supplies made by a domestic supplier to the notified
warehouses shall be treated as physical exports provided the payments for the same are made in free foreign
exchange.
Denomination of Export Contracts
All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but
the export proceeds shall be realised in freely convertible currency. However export proceeds against specific
exports may also be realized in rupees provided it is through a freely convertible account of a non resident bank
situated in any country other than a member country of ACU or Nepal or Bhutan. Additionally, the rupee
payment through the Vostro account must be against payment in free foreign currency by the buyer in his non
resident bank account. The free foreign exchange remitted by the buyer to his non resident bank (after deducting
the bank service charges) on account of this transaction would be taken as the export realization under the export
promotion schemes of this Policy.
Contracts for which payments are received through the Asian Clearing
Union (ACU) shall be denominated in ACU Dollar. The Central Government may relax the provisions of this
paragraph in appropriate cases. Export contracts and Invoices can be denominated in Indian rupees against EXIM
Bank/ Government of India line of credit.
Realization of Export Proceeds
If an exporter fails to realise the export proceeds within the time specified by the Reserve Bank of India, he shall,
without prejudice to any liability or penalty under any law for the time being in force, be liable to action in
accordance with the provisions of the Act, the Rules and Orders made there under and the provisions of this
Policy.
Free movement of export goods
Consignments of items meant for exports shall not be withheld /delayed for any reason by any agency of the
Central/State Government. In case of any doubt, the authorities concerned may ask for an undertaking from the
exporter.

No seizure of Stock
No seizure of stock shall be made by any agency so as to disrupt the manufacturing activity and delivery
schedule of export goods. In
exceptional cases, the concerned agency may seize the stock on the basis of prima facie evidence. However, such
seizure should be lifted within 7 days.
Export Promotion Councils
The basic objective of Export Promotion Councils is to promote and develop the exports of the country. Each
Council is responsible for the
promotion of a particular group of products, projects and services. The list of the councils, and their main
functions are given in Handbook (Vol.1).
Registration -cum-Membership Certificate
Any person, applying for (i) a licence/ certificate/ permission to import/ export, [except items listed as restricted
items in ITC(HS)] or (ii) any other benefit or concession under this policy shall be required to furnish
Registration-cum-Membership Certificate (RCMC) granted by the
competent authority in accordance with the procedure specified in the Handbook (Vol.1) unless specifically
exempted under the Policy.
Electronic Data Interchange
In an attempt to speed up transactions, reduce physical interface and impart transparency in activities related to
exports, digitally signed
electronic applications with payment through the electronic fund transfer would be encouraged. Such
applications shall be cleared within 24 hours and the applicant shall be required to furnish only 50% of the fee
mentioned in Appendix- 29 of Handbook (Vol.1).
Regularization of EO default and settlement of customs duty and interest through Settlement Commission
With a view to providing assistance to firms who have defaulted under the Foreign Trade Policy for reasons
beyond their control as also facilitating the merger, acquisition and rehabilitation of sick units, it has been
decided to empower the Settlement Commission in the Central Board of Excise and Customs to decide such
cases also with effect from 01.04.2005.
Easing of documentation requirements
Pending the finalization of Single Common Document (SCD) for international trade, the government
departments dealing with exports and imports will honour the permission/ licence/ certificate issued by the other
government departments based on the verification of the export documents like shipping bill, bank realization
certificate, packing list, bill of lading etc and will not insist upon fresh submission of these documents.
Exemption from Service Tax in DTA
For all goods and services which are exported from units in Domestic Tariff Area (DTA), remission of service tax
levied shall be allowed.
Exemption from Service Tax in EOU/EHTP/ STP/ SEZ/ BTP Units in EOU/ EHTP/ STP/ BTP/ SEZ shall be
exempted from service tax.

Grievance Redressal
DGFT as a facilitator of exports/ Imports from Canada:
DGFT has a commitment to function as a facilitator of exports and Imports from Canada. Our focus is on good
governance, which depends on clean, transparent and accountable delivery systems. Citizens Charter DGFT has
in place a Citizens Charter which lays down its commitment to serve importers and exporters. It also gives time
schedules for providing services to clients, and details of grievance committees at different levels.
Grievance Redressal Mechanism
In order to facilitate speedy redressal of grievances of trade and industry, a new grievance redressal mechanism
has been put into place by a Government Resolution.
Web chat
The office of the Director General of Foreign Trade has opened a chat window on its website for interacting with
the trade and industry to reply to queries on the Foreign Trade Policy. This web based interface would be held
from 3.00 pm to 5.00 pm on the second Wednesday of every month.

Chapter 2: Quarantine Procedure for Import of Agriculture Produce from

Canada
Issuance of Import Permit for Import of seeds / plant materials for sowing, planting and propagation:
The Importer or his agent shall apply for permit for import seeds / plant materials for sowing, planting and
propagation at least seven days in advance to the permit issuing authority as mentioned in Schedule-X of the
designated port of entry as notified vide clause 3(13) of Plant
Quarantine (Regulation of Import into India) Order, 2003 that all consignments of seeds and plants for
propagation shall be imported only through Regional Plant Quarantine Stations of Amritsar, Chennai, Kolkara,
Mumbai or New Delhi as per Schedule-I of PQ Act. The import permit shall be issued only for the commodities
as listed in Schedule-V, Schedule-VI & Schedule-XII. The importer or his agent shall apply for permit in PQ
Form-02 in duplicate along with Demand Draft / Pay Order for Rs.300/- (Rupees Three hundred only) drawn in
favour of "Pay and Accounts Officer, Department of Agriculture and Co-operation (Ministry of Agriculture)" of
the concerned area of jurisdiction from any Nationalized Bank, Catalogue / invoice , Registration Certificate
issued by National Seed Corporation or Director of Horticulture / Agriculture (as the case may be).
The importer should apply for certification of post-entry quarantine facility to the Inspection Authority in PQ
Form-18 well in advance and obtain the Certificate of approval of post-entry quarantine facility in PQForm-19,
issued by inspection authority or any officer authorised by Plant Protection Advisor to the Government of India
and submit the same along with an undertaking in PQ Form-20 by the importer to grow the imported plants and
plant materials under the approved post-entry quarantine facility (applicable in respect of seeds and planting
materials that require post-entry quarantine). The application received shall be registered and permit issued in PQ
Form- 04 of PQ Order 2003 in five copies for concerned port of entry and an orange and green tag shall be issued
in PQ Form-05 to facilitate identification of plant propagative materials upon arrival. The importer is advised to
send the exporters copy along with the orange and green tag to the exporter in advance to facilitate the
incorporation of the import permit number in the phytosanitary certificate issued at the country of origin and to
affix the orange and green tag on the consignment for easy identification and the importers copy shall be retained
by the importer and duly submitted to the concerned plant quarantine authority at the time of import.
The importer shall note that the permit issued is valid for a period of six months from the date of issue and valid
for multiple port access and multiple part shipments provided the exporter, importer and country of origin are the

same for the entire consignment. The importer shall also note that the permit issued is valid for a period for six
months from the date of issue and the validity may be extended on request by the importer for further period of
six months after payment of Rs.200/- as revalidation fee. The importer should forward the request with valid
reason for seeking extension before the expiry of the permit. The importer shall note that the import permit
issued is not transferable and no amendments to the permit shall be issued except for change of point of entry if
valid reasons are furnished. For import of commodities not covered under the Schedule-V, Schedule-VI and
Schedule-XII, import permit will not be issued. Pest Risk Analysis is mandatory for import of new commodities
into India. Hence, for import of new commodities the importer should apply for Pest Risk Analysis Request Form
to the Plant Protection Adviser to the Govt. of India. The tissue culture plant species other than listed in
Schedule-VI, that are obtained from mother stock tested and certified to be virus free, shall be allowed to be
imported subject to testing by appropriate inspection authorities specified in Part-II of Schedule-XI of PQO
2003.
Issuance of Import Permit for Import of seeds/plant material for consumption:
The importer or his agent shall make an application for import of seeds/plant material for consumption in PQ
Form-01 of PQ Order 2003 in duplicate at least seven days in advance to the permit issuing authority (ScheduleX) of the concerned port of entry as notified vide Schedule-I, Schedule-II and Schedule-III of Plant Quarantine
(PQ) Order, 2003 along with a demand draft / Pay order for Rs.150/- (Rupees one hundred and fifty only) drawn
in favour of the "Pay and Accounts Officer, Department of Agriculture and Co-operation, Ministry of
Agriculture" of concerned area of jurisdiction from any Nationalised bank. The import permit shall be issued
only for the commodities as listed in Schedule-V, & Schedule-VI of PQ Order, 2003.
Issuance of Import Permit for Import permit not required for the commodities listed in Schedule-VII.
The importer shall note that the permit issued is valid for a period of six months from the date of issue and valid
for multiple port access and multiple part shipments provided the exporter, importer and country of origin are the
same for the entire consignment. The import permit is issued in five copies in PQ Form-03 of PQ Order 2003.
The permit is valid for six months and can be further extended for another six months if valid reasons are
furnished prior to the expiry of the permit after payment of Rs.100 towards revalidation fee. The importer shall
note that the import permit issued is not transferable and no amendments to the permit shall be issued except for
change of point of entry if valid reasons are furnished. For import of commodities not covered under the
Schedule-V, Schedule-VI and Schedule-VII, Pest Risk Analysis is mandatory for import of new commodities into
India. Hence, for import of new commodities the importer should apply Pest Risk Analysis Request Form to the
Plant Protection Adviser to the Govt. of India.
Issuance of Import Permit for Import of Germplasm / Research and Breeding materials:
The Director, National Bureau of Plant Genetic Resources (NBPGR) is authorised to issue permits as specified in
Schedule-X of PQ Order, 2003 for import of germplasm / Research and breeding material for public / private
sector in the country including institutions and organisations of Indian Council of Agricultural Research (ICAR),
State Agricultural Universities (SAU) and International Crop Research Institute for Semi Arid Tropics
(ICRISAT). The import permit shall be issued only for the commodities as listed in Schedule-V, Schedule-VI &
Schedule-XII. The importer or his agent shall apply for import permit in PQ Form-08 in duplicate to the Director,
NBPGR, New Delhi and the permit shall be issued in PQ Form-09 in triplicate along with Red/green tag in PQ
Form-10 for identification Germplasm and Red/White tag in PQ Form-11 for identification Transgenic/
Genetically Modified Organism. The import permit for import of Transgenic/ Genetically Modified Organism
intended for agricultural purpose only, shall be issued subject to the approval of Review Committee on Genetic
Manipulation (RCGM) and/ or Genetic Engineering Approval Committee set up under the Rules for the
manufacture, use, import, export and storage of hazardous microorganism, Genetically engineered organisms or
cells made under Sections 6,8 and 25 of the Environment (Protection) Act, 1986 (29 of 1986) and subject to such
restrictions and conditions prescribed thereof. For import of commodities not covered under the Schedule-V,
Schedule-VI and Schedule-XII, import permit will not be issued. Pest Risk Analysis is mandatory for import of
new commodities into India. Hence, for import of new commodities the importer should apply Pest Risk
Analysis Request Form to the Plant Protection Adviser to the Govt. of India.

Issuance of Import Permit for Import of Live Insects, algae, mushroom, bio control agents and Microbial
cultures:
The importer or his agent shall apply for import of above organisms intended for agricultural use, to the Plant
Protection Advisor (PPA) to the Government of India in PQ Form-12 in duplicate at least one month in advance
along with registration fee of Rs.200/- by a bank draft drawn in favour of Accounts Officer, Directorate of Plant
Protection, Quarantine and Storage, N.H.-IV., Faridabad-121 001. The permits shall be issued in PQ Form-13, if
PPA is satisfied of the purpose for which such consignments are being imported.
Issuance of Import Permit for Import of Soil and Peat/Sphagnum moss etc.:
The importer or his agent shall apply for import of soil, earth, clay, peat and sphagnum moss and similar material
for any microbiological, soilmechanics, or mineralogical investigations and peat for horticultural purposes to the
Plant Protection Advisor (PPA) to the Government of India in PQ Form-06 in duplicate at least one month in
advance along with registration fee of Rs.200/- by a bank draft drawn in favour of Accounts Officer, Directorate
of Plant Protection, Quarantine and Storage, N.H.-IV., Faridabad-121 001. The permits shall be issued in PQ
Form-07, if PPA is satisfied of the purpose for which such consignments are being imported. It is important for
the exporter to understand various clauses of Plant Quarantine Order before exporting any plant product to India.
This will help in better business transactions in India.

Chapter- 3: Import Inspection and Clearance of Consignment from Canada

1. Registration of Application
The importer or his agent shall file an application in PQ Form-15 in triplicate in respect of each cargo
immediately upon arrival or in advance in case of perishable consignments to the officer-in-charge of plant
quarantine station at the notified point of entry along with following enclosures:

Import permit original (Importer's copy)

Phytosanitary certificate (original) issued at the country of origin or PSC- Reexport format, in case of re-exported consignment along with attested copies of
PSC issued from the country of origin.
Customs bill of entry (duly endorsed)
shipping/airway bill
Invoice and Packing list
Fumigation certificate (if required)
Certificate of Origin and
Bill of lading

On receipt of the application the PQ officer shall scrutinize the application and if found complete in all respects
shall register the application and assess the inspection fees. On payment of inspection fees by the importer as per
the rates prescribed under Schedule-IX(A) & (B) of PQ Order, 2003 in the form of demand draft/ pay order
drawn in favour of the 'Pay and Accounts Officer, Department of Agriculture & Cooperation' of concerned area
of jurisdiction, the plant quarantine officer shall issue a quarantine order specifying name of inspecting staff,
date, place and time of inspection of the consignment.
2. Inspection/Sampling /laboratory testing
The importer or his agent shall arrange for inspection/sampling of the consignment on the scheduled date & time
at the prescribed place by the nominated plant quarantine officer as per the quarantine order issued. Sampling of
seed for propagation shall be in accordance with the International Seed Testing Association (ISTA) Rules, 1976
and of cereals, pulses, oil seeds, dry fruits etc., and for consumption plant materials as per Bureau of Indian
Standards (IS: 2814/1978 and IS: 3714/1978). The importer or his agent shall associate with inspecting officer

while undertaking inspection. The PQ officer deputed for inspection shall draw appropriate size of sample for
detailed laboratory testing. Commercial import of consignments of seeds of coarse cereals, pulses, oil seeds and
fodder seeds / stock material of fruit plant species for propagation shall only be permitted based on the
recommendations of EXIM Committee of Department of Agriculture and Cooperation, except the trial material
of the same as specified in Schedule-XII of Plant Quarantine Order.
3. Fumigation & treatment of consignment
In the event of live insect infestation is noticed, the importer or his agent shall arrange for fumigation of
consignments by an approved pest control operators at his own cost under the supervision of PQ officer. The
importer or his agent submits an undertaking for supervision of fumigation operations along with remittance of
supervision charges as per the rates prescribed under Schedule-IX (B). It shall be responsibility of the importer or
his agent to file an application for the quarantine inspection of imported seeds, plants and plant products or other
regulated articles in PQ Form-15 along with copes of relevant documents and fees as prescribed under ScheduleIX payable by a demand draft to the competent authority.

to provide information on any plant and plant product and other articles covered
under this Order and which are imported by him or
are in his possession to the Plant Protection Adviser or any officer duly authorized
by him.
to bring the consignments to the concerned plant quarantine station or to place of
inspection, fumigation or treatment as directed by Plant Protection Adviser or the
officer duly authorized by the PPA in this behalf.
to permit drawing of appropriate samples for inspection and laboratory
investigation and extend necessary facilities towards the same.
to open, repack and load into or unload from fumigation chamber and seal the
consignment
to remove them after inspection and treatment according to the directions issued
by Plant Protection Adviser or any officer duly authorized by him.
to arrange deportation or destruction of the consignment at the cost of importer
as may be deemed necessary by the Plant Protection adviser or an officer
authorized by him.

4. Release/Detention of consignment
A release order is issued in PQ Form-16 to customs, if a consignment on inspection is found to be free from
exotic pests. However in case of consignments found infested with live pests the same shall be permitted for
clearance only after fumigation and re-inspection. A detention order is issued in PQ Form-17 in respect of
consignments that are found infested/infected with quarantine pests or imported in contravention with PQ
regulations for arranging deportation failing which the same shall be destroyed at the cost of importer.
5. Procedures of PEQ inspection
After the initial inspection of consignment, if no pests of quarantine concern observed, the PQ officer shall
accord quarantine clearance in PQ Form-16 with a condition to grow the imported consignment under post-entry
quarantine. He shall intimate the Inspection Authority (IA) about the release. A multidisciplinary team of the IA
shall inspect the imported planting material at the time of planting in specified PEQ facility and thereafter post
planting observations are made firstly within 20-25 days followed by second within 40-45 days of planting in the
case of cuttings. However in the case of budding the period of observation shall be reckoned from the date of
establishment of bud union and sprouting. In the case of saplings the first observation shall depend upon the
growth of the plant, which may be normally with in 2-3 weeks. In the case of Roses the PEQ period is extended
up to 18 months and in the case of oil palm the PEQ period is 12 months. The IA shall submit the final report of
PEQ inspection to PPA under intimation to the officer-in-charge of concerned PQ station with in 15 days after the
final observation for information & record

6. Time schedules for clearance

The period of quarantine clearance for seeds are 30-35 days and perishable plant material such as
cuttings/saplings/bud wood etc., are
cleared within 12-24 hrs. However plant materials for consumption are cleared within a day or two except those
requiring fumigation after 3 days. The tissue cultures and mushroom spawn cultures are cleared within 4-6 hrs
and also cut flowers and fresh fruits.
7. Import Inspection Fee
SCHEDULE IX (A) - (Clause 5 of Plant Quarantine (Regulation of Import into India) Order, 2003)
S.No. Particulars of Import
1

Volume/Wt.

Plants/ planting materials ncluding, cuttings,

saplings, bud wood issue cultures of plant origin
etc., requiring Post-entry Quarantine

Fee

(i) Up to 10
numbers.
(ii) Above 10 numbers.
Plants/planting materials including bulbs, tubers,
Up to 100 numbers.
corms, rhizomes etc. not requiring Post-entry
(iv) Above 100
Quarantine.
numbers.
Up to 1 kg.
Above 1 kg up to
Mushroom spawn culture/ corm lets of ornamental
100 kg.
bulbs, size of 2.5 cm diameter requiring post entry
(iii) Above 100 kg
quarantine and Seeds for sowing
up to 500 kg.
(iv) Above 500 kg.

Rs. 250/- Rs. 250/-plus @

Rs. 1.60 per plant.
Rs. 100/- Rs. 100/-plus @
Rs. 0.40 per plant.

Rs. 100/- Rs.100/- plus Rs.

50/- per additional kg.
Rs.5050/- plus Rs.15/- per
additional kg.
Rs. 11050/- plus Rs.5/- per
additional kg.
Rs.50/- Rs.50/- plus
Rs.5/-per additional kg
(i) Up to 2 kgs.
Rs.550/- plus Rs. 2/- per
(ii) Above 2 kgs up
additional kg.
Plant material, seeds and fruits for consumption
to 100 kgs.
Rs. 2500/- plus Rs. 75/- per
Note: Fraction of Kg/ Tonne may be rounded off to (iii) Above 100 kgs
additional tonne except in
the nearest unit
up to 1000 Kgs.
case of pulses;
(iv) Above 1000
Rs. 2500/- plus
Kgs.
Rs.50/- per additional tonne
in case of pulses

Note: Fraction of kg/tonne may be rounded off to the nearest unit.

8. Fumigation/ Disinfections / Disinfestations / Supervision Charges
According to SCHEDULE IX (B) of PQ Act:
SI. Particulars of Import
No.

1.

2.

3.

Volume/ Wt. Fees

A. On Volume
Basis
Up to 5 cu.m.
Above 5 cu.m.
Plants / Plant Products / Planting materials / Dry fruits / Fresh fruits or part thereof
/ Vegetables / Seeds / Soil / earth / clay (The importer shall
B. On
arrange for fumigation, disinfestations of consignment at his cost,
Container
under the supervision of Plant Protection Adviser or an officer
Basis
authorized by him in
20 ft container
this behalf)
(33 cu.m.)
40 ft container
(66 cu.m.)
C. Supervision
Charges

Rs. 600/Rs. 600/- plus Rs.

300/- per
additional 5
cu.m. or part
thereof.

Rs.2400/Rs.4500/-

Rs.500/- per day

per consignment.

PQ Requirement For Wood Packing Materials

Wood Packing material means wood or wood products (excluding paper products) used in supporting,
protecting or carrying a commodity (includes Dunnage) Dunnage means wood packing material used to
secure or support a commodity but which does not remain associated with the commodity (FAO-ISPM-15). In
order to prevent movement of pests associated with the packing materials the import of consignments packed in
packing materials is regulated by PQ Order, 2003 as specified in clause 3(20A) all packing materials shall be
permitted only after appropriate treatment. The treatment include heat kiln at 56oC for 30 minutes or equivalent
thereof or Methyl bromide fumigation at 48gm/M3 for 16 hours at 21oC and above or chemical impregnation of
wood or any other approved treatment as per international standard and the treatment to be endorsed in the
Phytosanitary certificate and for articles packed with hay and straw the conditions are as specified in 3(20b) no
article packed with hay or straw shall be allowed import unless it is appropriately treated prior to export. The
treatment shall include methyl bromide fumigation @ 48 gm/m3 for 24 hrs at NAP at 21oC or above or
equivalent thereof; or steam sterilization under pressure (120oC) for 15 min; or any other treatment approved by
the Plant Protection Adviser and a treatment certificate shall accompany the article.
The articles packed with packing materials shall not be released by the Customs Officers unless the packing
material appropriately treated and the same is marked on the packing material as per FAO-ISPM-15 or
consignment is accompanied by a Phytosanitary certificate in respect of the said packing material with
endorsement of the treatment in the Phytosanitary Certificate. In the absence treatment marking on the packing
material or Phytosanitary Certificate for the packing material the Custom shall refer the material for Plant
Quarantine Inspection. The PQ staff shall inspect the packing material and if required subject the packing
material to treatment at the expense of the importer and then accord plant quarantine clearance. The above
conditions shall not be applicable to wood packing materials wholly made of processed wood process such as
plywood, particle board, oriental strand board or veneer that have been created using glue, heat and pressure or
combination thereof. Also the above conditions are not applicable to wood packing materials such as veneer
peeler cores, saw dust, wood wool and shaving and thin wood pieces (less than 6mm thickness) unless they are
found to be harboring any regulated pests specified in the Plant Quarantine Order, 2003.
Further the above conditions shall not be applicable to wood packing materials used for packaging of bonafide
passenger baggage containing goods other than plants and plant products. The conditions are applicable to wood
packing materials shipped on or after 1st November, 2004. The conditions specified in Clause 3, sub-clauses 21
and 22 of PQ Order, 2003 published vide S.O.No. 1322(E) dated 18th November, 2003 shall be omitted from
31st May 2004.
Relaxation Conditions under PQ Act
Relaxation conditions of Import Permit and Phytosanitary Certificate in certain cases:
The relaxation of Import Permit and Phytosanitary Certificate for consignment in certain cases is granted as per
the provisions of Chapter VI of Plant Quarantine (Regulation of Import into India) Order, 2003 as mentioned
below: The Central Government may, in public interest, relax any of the conditions of this Order relating to the
import of any consignment. As per DPPQS OM.No. 99-69/2004-PQD, dated 20.12.2004 and dated 08.02.2005,
the following conditions are applicable in case of relaxation of import of consignments of plants and plant
materials into India, which is covered under Schedule-VI and Schedule-VII:
Applications for the relaxation of conditions of the Plant Quarantine (Regulation of Import into India) Order,
2003 in respect of commodities
already notified, after completion of their Pest Risk Analysis (PRA) in Schedule-VI and Schedule-VII shall be
disposed of only by the Officer-in- Charge at the level of Plant Protection Officer or / and above of the concerned
Plant Quarantine Station at the port of entry of the said
consignment as a one time exception in favour of a single party. However, the grant of such relaxation will be
subject to prior testing and inspection of the said consignment for freedom from quarantine pests/ diseases,
treatment as and when required/ prescribed, and other conditions, such as five times inspection fee and import
permit fee as envisaged under Clause 14 of the PQO, 2003. All the second or
subsequent cases of any party for relaxation of conditions of import permit and Phytosanitary certificate shall be
sent to the Joint Secretary (PP), Department of Agriculture and Cooperation for consideration. However, in cases

where Pest Risk Analysis (PRA) for the commodity sought to be cleared has not been finalized and which has not
yet been notified in any of the Schedule to the Plant Quarantine (Regulation of Import into India) Order, 2003 as
amended or in cases where the commodity being imported is listed under any Schedule other than Schedule VI
and VII, relaxation under Clause 14 of the Plant Quarantine Order, 2003 shall continue to be granted by the Joint
Secretary (PP), Department of Agriculture and Cooperation. In the event of grant of relaxation by Competent
Authority, the consignment shall be released after charging fee for import permit and fee for Plant Quarantine
Inspection at five times of normal rates. This fee may be waived by the Competent Authority under special
circumstances for reasons to be recorded in writing. The provisions of this Order shall apply without prejudice to
the Customs Act, 1962 (52 of 1962) or any other Acts or Orders related to imports.

Chapter 4- Seeds and Plants Pre-Entry Quarantine

Requirements from Canada
An Import Permit issued by authorized plant quarantine officer in India, notified vide Schedule-X of Plant
Quarantine (Regulation of Import into India) Order, 2003 and a Phytosanitary Certificate issued at the country of
origin of the consignment are mandatory for import of seeds/plants/plant material for
sowing/planting/propagation and for consumption cover under Schedule-V and Schedule-VI. Please note that
Import Permit is not required for the plant materials covered under Schedule-VII. A special permit issued by the
Plant Protection Adviser is required for import of soil, earth, clay and similar material for any microbiological,
soilmechanics, or mineralogical investigations and peat for horticultural purposes. For import of insects or
microbial cultures including mushroom, algae and or bio-control agents a special permit issued by the Plant
Protection Adviser is essential. Further a special permit issued by the Director, National Bureau of Plant Genetic
Resources (NBPGR) New Delhi-110012, is needed for the import of Germplasm/ Transgenic/ Genetically
Modified Organisms for research/ experimental purpose by public/ private sector institutions. The permit
issuance for Transgenic / Genetically Modified Organisms is subject to prior approval of Review Committee on
Genetic Manipulation (RCGM) under Department of Biotechnology. Any articles packed with raw / solid wood
packing material, import of which requires appropriate treatment* and marking on packing material as per ISPM15 (FAO) or Phytosanitary Certificate stating that packing material has been appropriately treated. The treatment
of packing material include fumigation with Methyl Bromide @ 48g/M3 for 16 hrs at 21oC and above or any
equivalent thereof or Heat Treatment at 56oC for 30 mins. Or Kiln Drying or Chemical Impregnation or any
other treatment that meet Heat Treatment specifications of ISPM-15.
Notified points of entry
The consignments of plants/plant material for consumption shall be permitted import through the entry points
notified vide Schedule-I,
Schedule-II and Schedule-III of Plant Quarantine (Regulation of Import into India) Order, 2003. The import of
seeds, plants, cuttings, bulbs and other planting materials for propagation purpose are permitted to import only
through Regional Plant Quarantine Stations of Amritsar, Chennai, Kolkata, Mumbai and National Plant
Quarantine Station, New Delhi. The port of entry through Alleppey (Kerala), Cuddalore (Tamil Nadu), Goa
(Goa), Gopalpur (Orissa), Jamnagar (Gujarat), Beypore (Kerala), Karwar (Karnataka), Krishnapatnam (Andhra
Pradesh), Machlipatnam (Andhra Pradesh), Nagapatnam (Tamil Nadu), Navlakhi (Gujarat), Okha (Gujarat),
Porbander (Gujarat), Veraval (Gujarat) is permitted only for import of consignments of food grains by Food
Corporation of India. All the regulated articles such as live insects, microbial cultures, bio-control agents and
soil, earth, clay and similar material for microbiological, soil mechanics or mineralogical investigations and peat
for horticultural purposes shall only be imported into India through Regional Plant Quarantine Stations at
Amritsar, Chennai, Kolkata, Mumbai and New Delhi as per the provisions under Clause 3(14) of PQ Order,
2003. Import of Transgenic/ Germplasm/ Genetically Modified Organisms shall be permitted only through New
Delhi Airport as per the provisions under Clause 3(14) of PQ Order, 2003.

Prohibited, Restricted & Regulated Plant Species

Prohibited Plant Species:
The list of prohibited plant species from specified countries covered under Plant Quarantine (Regulation of
Import into India) Order, 2003 (PQ Order) giving justification for prohibitions is reproduced in Schedule-IV.
Restricted Plant Species:
List of plants/ plant materials import of which are restricted and permissible only by authorized institutions
specifying various additional declarations is reproduced in Schedule-V.
Plants Permitted Import With Specific Additional Declarations
A list of plant species, for which the PPA prescribes additional declarations and special conditions, are
reproduced in Schedule-VI. Besides, this a list of plant species for consumption purpose is reproduced in
Schedule-VII. The importer should ensure that the consignments are free from quarantine weeds as specified in
Schedule-VIII. The importer should ensure that no prohibited/ restricted plant species are imported except those
by authorized institutes and that every consignment of plant species imported shall be accompanied by a
phytosanitary certificate issued by an authorized officer at the country of origin of consignment, containing
additional declarations for freedom from specified pests as indicated in the import permit. Also the importer
should ensure that the special conditions prescribed there under are complied with. The importers should
familiarize themselves with the list of plant species covered under Convention on International Trade in
endangered species (CITES) (Article III, Para 3, Appendix-I and Article IV, Para 4, Appendix-II). It shall be the
responsibility of importer to ensure that the provisions of CITES are complied. The importers should also
familiarize themselves with the list of plant species covered under prohibited list of plants/ plant materials under
Export & Import Policy (EXIM Policy), Para 4 of Notification No. 2(RE-98)/ 1997- 2002 dated 13-4-98 and
restricted list of plants/ plant materials covered under Export & Import Policy.
Pest Risk Analysis
Pest Risk Analysis is mandatory before any plant or plant materials being permitted to be imported into the
country. The Import Permit issuing authorities shall issue import permits for commodities specified in ScheduleV, Schedule-VI and Schedule-VII of PQ Order, 2003 for which Pest Risk Analysis has already been done.

Any new commodities which are not covered under the above mentioned
Schedules, the import permit can not issued
Also for the import of commodity from a country other than listed in the above
schedules the import permit can not be issued.
An Importer who intend to import a new commodity or from a country not
covered under the list shall send a specific Pest Risk Analysis Request Form to the
Plant Protection Adviser to the Government of India, Dte. of Plant Protection,
Quarantine & Storage, N.H.-IV., Faridabad-121 001, Haryana.

Post-entry quarantine Requirements

In accordance with provisions of Chapter IV of Plant Quarantine (Regulation of Import into India) Order, 2003,
the importer shall be required to establish the post-entry quarantine facilities such as an isolated
field/nursery/glass house/screen house/ poly house etc., that are duly certified by the Inspection Authorities (IAs)
notified in Schedule-XI Part-I and Part-II in accordance with guidelines prescribed by PPA for importing plants
and plant materials that require post-entry quarantine.
The importer shall establish these facilities sufficiently in advance so that the same may be ready for use at the
time of arrival of consignment but not latter. The importer shall apply in PQ Form-18 for certification of approval
of postentry quarantine facility to the Inspection Authority and the Inspection Authority shall issue the certificate
approval of post-entry quarantine facility in PQ Form-19. A certificate issued by the IA (PQ Form-19) shall be

submitted to the permit issuing authority at the time of applying for import permit and to the officerin- charge of
PQ station at the prescribed point of entry at the time of arrival of consignment along with an undertaking to
grow the plants under postentry quarantine facility in PQ Form-20. After the initial inspection of consignment, if
satisfied, the PQ officer shall accord quarantine clearance with a condition to grow the imported consignment
under post-entry quarantine and IA will be intimated accordingly in the form.
The importer shall inform in advance the concerned IA about the time of planting of imported plant material in
approved facility and permit complete access to the post-entry quarantine facility for the inspection of plants and
also abide by his instructions concerning plants growing under post-entry quarantine. The importer shall provide
necessary facilities to IA for undertaking inspection at the time of planting and at such intervals as may be
considered necessary by him in accordance with guidelines issued by PPA for the detection of pests and diseases,
if any and general observance of conditions governing the approval of post-entry quarantine. The IA may permit
the release of plants grown under post-entry quarantine, if they are found free from pests for the period specified
in the permit. Where the plants are found affected by quarantine pests, the IA shall order the destruction or return
to the country of origin, of the affected consignment of plants of whole or part of. If the pest is not of quarantine
importance IA may advise necessary control measures and release the plant material if satisfied that the pest is
controlled or issue order for destruction. The importer shall destroy the affected plant material when ordered in a
prescribed manner under the supervision of IA. The IA may submit a copy of PEQ inspection report to the PPA
under intimation to the officer-in-charge of PQ station through which consignment was imported.
Fees and charges
A fee of Rs.150/- (Rupees one hundred and fifty only) shall be payable as a registration fee for the applications
for issue of import permit for consumption plant materials and Rs.300/- (Rupees three hundred only) shall be
payable for registration of the applications for issue of import permit for seeds and plant materials for
propagation as per the Plant Quarantine (Regulation of Import into India) Order, 2003 as issued under
Notifications S.O 1322 (E) dated 18th November 2003. For extending the period of validity a fee of Rs.100/- for
consumption materials and Rs.200/- for propagative plant materials. For import of soil, earth, clay and similar
material any microbiological, soil mechanics, or mineralogical investigations and peat for horticultural purposes,
a fee of Rs.200/- to be paid for issuance of import permit, by Plant Protection Adviser to Government of India,
the draft should be drawn in favour of Accounts Officer, Directorate of Plant Protection, Quarantine & Storage,
N.H.-IV., Faridabad-121001. For import of live insects, microbial cultures including mushroom, algae or biocontrol agents a fee of Rs.200/- to be paid for issuance of import permit, by Plant Protection Adviser to
Government of India, the draft should be drawn in favour of Accounts Officer, Directorate of Plant Protection,
Quarantine & Storage, N.H.-IV., Faridabad-121001. Besides the above, for import of plants and plant materials
covered under Schedule-V, VI and VII the importer or his agent shall pay to the Plant Protection Adviser or any
officer duly authorised by him in this behalf, the fees as prescribed in Schedule-IX (Clause 5) of Plant
Quarantine (Regulation of Import into India) Order, 2003 to meet the cost of inspection, post-entry quarantine
inspection, fumigation, disinfestation, disinfection and supervision charges of imported plants and plant
materials. The exporter or his agent shall pay inspection, fumigation and other treatment charges as per rates
prescribed.

Chapter 5: Food Laws applicable for Food Products Import from Canada
Currently there are more than fifteen laws relating to food, which are administered by a number of different
Ministries and Departments. Various laws affecting Trade with India in various categories are as follows:

The
The
The
The
The
The

Prevention of Food Adulteration Act, 1954.

Fruit Products Order, 1955.
Milk and Milk Products Order, 1992.
Meat Food Products Order, 1973.
Vegetable Oil Products (Control) Order, 1947.
Edible Oils Packaging (Regulation) Order, 1998.

The Solvent Extracted Oil, De-oiled Meal, and Edible Flour (Control) Order, 1967.
The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of
Production, Supply, and Distribution) Act, 1992. Any other order issued under the
Essential Commodities Act, 1955, relating to food
The Standards of Weights and Measurement Act, 1976 (The Packaged Commodity
Rules, 1977).
The Export (Quality Control and Inspection) Act, 1963.
The Environment Protection Act, 1986 and the Environment Protection Rules,
1989.
The Bureau of Indian Standards Act, 1986.
The Agricultural Produce (Grading and Marketing) Act, 1937.
The Customs Act, 1962.
The Foreign Trade (Development and Regulation) Act, 1992.

Other Acts/Orders enacted or issued by the State Governments and Union Territories.
Among the more important food laws are:
Prevention of Food Adulteration Act (PFA) of 1954 and the PFA Rules of 1955
The law to protect the nation against impure, unsafe, and fraudulently labeled foods is the Prevention of Food
Adulteration Act (PFA) of 1954 and the PFA Rules of 1955, as amended from time to time. PFA standards and
regulations apply equally to domestic and imported products. The PFA covers various aspects of food processing
and distribution, such as food color, preservatives, pesticide residues, packaging and labeling, and regulation of
sales. The law is enforced by the Director General of Health Services, Ministry of Health and Family Welfare,
Government of India (GOI). The PFA focuses primarily on the establishment of regulatory standards for primary
food products, which constitute the bulk of the Indian diet. The PFA does not always keep pace with advances in
the food processing sector. Moreover, PFA rules sometimes appear to be drafted in a manner that goes beyond the
mere establishment of minimum product quality specifications, such as prescribing recipes for how food products
are to be manufactured. Concerned parties can appeal to have the PFA Rules amended. The Central Committee
for Food Standards, chaired by the Director General of Health Services, is the decision-making entity. The
appeals process, however, is cumbersome and time consuming. All imported products must adhere to the rules as
specified in the regulation, including the labeling and marking requirements.
Food Additive Regulations
Information regarding permitted coloring matter, preservatives, etc., are provided in various sections of the PFA
Rules, 1955, as amended, which are listed below:

Coloring Matter Part VI

Preservatives Part X
Poisonous metal Part XI
Anti-Oxidants, Emulsifying, Stabilizing and anti-caking Agents Part XII
Flavoring agents and related Substances Part XIII
Sequestering and buffering agents Part XVI
Food Additives Part XIX

Imported processed foods containing coloring matter, preservatives, food additives, etc. should conform to the
regulations contained in the PFA rules, 1955. On August 13, 2003, the Ministry of Health and Family Welfare
issued a final Gazette notification under the PFA Act, prohibiting the sale of fresh fruits and vegetables coated
with waxes (both edible and non-edible), mineral oils, and colors.

Pesticides and Other Contaminants

The PFA Rules, 1955, include a positive list for the presence of pesticide residues in various commodities and
food (manufactured/imported)
products, and their respective tolerance levels. Of the 181 pesticides registered for regular use in India, only 71
pesticides listed in Part XIV of
PFA Rules have MRLs notified. For an additional 50 pesticides, MRLs are finalized and draft notifications have
been issued. There are 27 pesticides that do not require MRLs. For the remaining 33 pesticides, MRLs have not
yet been established. The CODEX MRLs may be accepted for imported foodstuffs only for those pesticides not
included in Indias positive list of pesticides.
High Risk Foods Requirements
Product registration is not required for imported products. All imported foods are randomly sampled at the port
of entry for their conformity to PFA standards. On June 16, 2004, the Ministry of Commerce and Industry
published a list of high risk food items, imports of which will be subject to 100 percent sampling with
immediate effect. The import of product samples via express mail or parcel post is allowed, contingent on
obtaining prior permission from the Directorate General of Foreign Trade. Mail order imports are not allowed.
Once the products enter the domestic market, they are to be monitored randomly at the retail/wholesale level by
the respective regulatory authorities. According to Policy Circular No. 37 (RE-2003)/2002-2007, Condition 8 of
chapter 1A: General notes regarding import policy of ITC (HS) for Classifications of Export and Import Items,
2002-2007, reference is invited to Policy Circular No. 25 (RE-2003)/2002-07 dated 28.1.2004 regarding 100%
sampling of edible/food products under the PFA Act, the list of High risk food items is as under:
1. Edible Oils and Fats in any form
2. Pulses and Pulses products
3. Cereals and Cereal Products
4. Milk powders
5. Condensed Milks
6. Infant Milk Food
7. Milk Cereal Base Weaning Foods
8. Infant Formulae
9. Food Colours
10. Food Additives
11. Natural Mineral Water
12. Packaged drinking water
13 Tea & Coffee
14. Cocoa butter equivalent or Substitutes
The Standards of Weights and Measures Act, 1976, and Standards of Weights and Measures (Packaged
Commodities) Rule, 1977
These legislative measures are designed to establish fair trade practices with respect to packaged commodities.
The rules aim to ensure that the basic rights of consumers regarding vital information about the nature of the
commodity, the name and address of the manufacturer, the net quantity, date of manufacture, and maximum sale
price are provided on the label. There may be additional labeling requirements for food items covered under the
PFA. The Department of Consumer Affairs in the Ministry of Consumer Affairs, Food, and Public Distribution is
the regulatory authority. Importers of packaged food products must adhere to these acts, including labeling the
product. The name and address of the importer, the net quantity, date of manufacture, best-before date, and
maximum sale price must be included on the label.
The Fruit Products Order, 1955
The fruit and vegetable processing sector is regulated by the Fruit Products Order, 1955 (FPO), which is
administered by the Department of Food Processing Industries. The FPO contains specifications and quality
control requirements regarding the production and marketing of processed fruits and vegetables, sweetened
aerated water, vinegar, and synthetic syrups. All such processing units are required to obtain a license under the
FPO, and periodic inspections are carried out. Processed fruit and vegetable products imported into the country
must meet the FPO standards.

Meat Food Products Order, 1992

This order administers the permissible quantity of heavy metals, preservatives, and insecticide residues for meat
products. Ministry of Food Processing Industry is the new regulatory authority. This order is equally applicable
to domestic processors and importers of meat products. However, its implementation is weak due to unorganized
production in the domestic market and few imports. Livestock Importation Act, 1898 Under the Livestock
Importation Act, 1898, the government laid down procedures for the importation of livestock and products to
India, which is implemented by the Department of Animal Husbandry and Dairying, Ministry of Agriculture.
Milk and Milk Products Order, 1992
This order regulates the production, distribution, and supply of milk products; establishes sanitary requirements
for dairies, machinery, and premises; and sets quality control standards for milk and milk products. Standards
specified in the order also apply to imported milk products. The Department of Animal Husbandry and Dairying,
Ministry of Agriculture, is the regulatory authority. Plant Quarantine (Regulation of Import into India) Order,
2003 Under the Destructive Insects and Pests Act, 1914, the GOI formulated the Plant Quarantine (Regulation of
Import into India) Order, 2003. It was published on November 18, 2003, with the purpose of prohibiting and
regulating imports of agricultural products into India. The implementing agency is the Directorate of Plant
Protection, Quarantine, and Storage, under the Department of Agriculture and Cooperation, Ministry of
Agriculture.
Regulations on GMOs
The Genetic Engineering Approval Committee (GEAC) is the decisionmaking authority on allowing imports of
bioengineered products. Food ingredients and additives containing bioengineered organisms, shall not be
produced, used, or imported without the approval of the GEAC. All such approvals, if granted, shall be for a
specific period not exceeding four years at the first instance, and renewable for 2 years at a time, subject to terms
and conditions. Mandatory Bureau of Indian Standards (BIS) Certification According to the Department of
Commerce Notification No. 44 (RE- 2000)/1997-2002, dated November 24, 2000, requires imports of certain
products, including some food products (milk powder, condensed milk, infant milk foods, milk-cereal based
weaning foods) and food additives, to comply with mandatory Indian quality standards. All manufacturers and
exporters whose products are sold in India are required to register with the Bureau of Indian Standards. However,
the enforcement of this regulation has been very lax, as current import volumes of these products have been
small (mostly in mixed containers).
Specific Standards for Various Foods
The PFA Rules, 1955 (Appendix B), and the Fruit Products Order, 1955, as amended, contain definitions and
specific quality standards for certain food products, such as processed cheese, ice cream, spice mixes, milk and
milk products, infant food, vegetable oils and margarine, fruits and vegetable products, and basic food items like
wheat, rice, and pulses. Imported products must also meet the specified quality standards.
Customs Clearance of Processed Foods from Canada
Once the product has arrived at Indian ports for clearance, authorities to give the clearance for the product from
Canada, they have to follow procedure.
1. The Customs shall undertake following general checks in addition to testing of samples in terms of paragraph
2 and paragraph 5, given below, prior to clearance of food items, and if the product does not satisfy these
requirements, clearance shall not be allowed:
a) The condition of the hold in which the products were transported should be checked to see whether they meet
the requirements of
storage, as per the nature of the product, and does not in any way cause deterioration or contamination of the
products.
b) Physical/visual appearance in terms of possible damage- whether it is swollen or bulged in appearance; and
also for rodent/insect

contamination or presence of filth, dirt etc. - should be checked.

c) The product should meet the labeling requirements under the Prevention of Food Adulteration Rules and the
Packaged
Commodities Rules. This includes ensuring that the label is written not only in any foreign language, but also in
English. The details of
ingredients in descending order, date of manufacture, batch no., best before date etc. are mandatory requirements.
All products will
also have to indicate details of best before on all food packages. This is a mandatory requirement as per the
Ministry of Health notification No: GSR 537(E) dated 13th June 2000.
2. All the consignments of edible/food products imported through ports, airports, ICDs, CFSs, Land Custom
Stations shall be referred to PHOs for testing and clearance and shall be allowed only after receipt of the test
report. Pending receipt of test report, such consignments may be allowed to be stored in warehouses under
section 49 of the Customs Act, 1962. If the product fails the test, the Customs authorities will ensure that the
goods are re-exported out of the country by following the usual adjudication procedure or destroyed as required
under the relevant rules.
3. As regards ICDs/CFSs/ports/airports/LCSs, where Port Health Officers are not available, the Customs shall
draw the samples and get these tested from the nearest Central Food Laboratory or a laboratory authorised for
such testing by the Directorate General of Health
Services.
4. The Customs shall also develop a database regarding importers and import sources and products which are
found to consistently fail the tests and give some feedback on the nature of the shortcomings noted to the
Director General of Health Services (DGHS) to serve as input for policy formulation.

5. In addition to testing of food items under the PFA Act, 1954, these items shall also be
subject to examination/testing to ensure compliance of the requirements of other Acts,
regulations and orders such as Meat Food Products Order, 1973, Plants, Fruits and Seeds
(Regulation of Import into India) Order, 1989, the Livestock Importation Act, etc. for the
time being in force if these are also covered by these Acts/orders, before these are
allowed clearance into the country.

About food grading

The food grading system is an initiative designed to
improve food safety. All businesses providing food to
the public must display a license that shows their
grade. This should be in a prominent position on the
premises that is visible to the public.
This means that you can judge how well the business
complying with the rules and regulations that govern
food safety, however the grade will only make sense
you understand what the various levels of food
grading represent.
The Food Premises License (Certificate of
Registration) carries the grade on it as set out by
different food laws and standards.

is
if

How grades are assessed

Food premises are audited on a routine basis by an Environmental Health Officer. The
officer checks to see if the business/manufacturer/food service provider is meeting the
current rules and regulations that govern food safety.
The inspection focuses on the follow areas:

the physical condition of the premises

the conduct of the operator and staff
cleaning and sanitizing of the premises
training of staff
food safety procedures in place.

Understanding the grades

The grade indicates the standard of food hygiene found in premises at the time of the last
grading inspection. Inspections are carried out prior to registration or the renewal of
registration of the manufacturer by the food laws regulation authority.
To assist with understanding, the gradings are based on the kind that used to be passed
out at school.
Note: There is no Grade C to avoid it being thought of as a "passing" grade.
Gold A

Awarded for excellence. This is given to premises that are achieving a

very high level of compliance with the regulations. In addition, they
consistently demonstrate best practice to ensure that food is safe.

Grade A

is given to premises that are achieving a high level of compliance with

the regulations.

Grade B

is given to premises that are achieving a good level of compliance with

the regulations.

Grade D

is given to premises that have a poor level of compliance with the

regulations, and/or have repeated faults from a previous inspection.

Grade E

is given to premises that have an unsatisfactory level of compliance.

Grade Pending is given to a new premises or a premises that has recently transferred
ownership.
CI

This premises holds a certificate of inspection. It does not require

registration and is not included in the food grading scheme.

These premises still need to meet the standards set by the Indian Food
Laws.

Purpose of Food grades and Standards

Food standards and grades exist to allow buyers to determine the quality and
category of a product with minimal inspection.
Grades are also useful in specifying contracts of commodities in advance and
allow the pooling of supplies from different producers of the similar grade crops.
Classification of Technical Trade Barriers by Regulatory Goal
Societal Interests
Risk-reducing measures
Non-risk reducing
measures
Producers/Processors Commercial animal and plant health Compatability
protection
Consumers
Food Safety
Quality Attributes
Natural environment
Protection of natural environment
Conservation
from harmful non-indigenous species
Food Standards
Standards exist to regulate food sanitation, labeling, and the additives that must or
can be used.
There are also certain specifications that a product must be called in order to be
marketed as a product of that name.
Food Grading
A number of national, state, and industry grades exist for a variety of product
categories.
Some companies may have grading standards for some commodities that are
stronger than national standards.
For many product categories, there is no national mandatory requirement to
display the product grade but regulations vary from country to country.
Consumer Awareness is the key significant problem in grading is that endconsumers are usually not aware of specific food grades or criteria for the
different grades within a food category.
Consumers should be educated to transfer incentives to the farmers for their hard
work. The high grade produce must get larger share of premium paid by the
consumers.
Commodities grades are often more useful in industry transactions.
Future markets in India will play an important role in promoting grade based
Trade

 Quality of seed, pesticide and fertilizers must also be closely monitored to ensure
uniform production

Components of Food Standards

Regulations (e.g., additives, packaging)
Food Safety and Sanitation standards
Food Labeling
Product qualification requirements: criteria that products must meet in order to
use a food term
Specifications for Purchases by organizations and e.g. Vanilla ice cream,
Chicken burger, Chicken soup.
Grading for few what about the Rest
Dividing disparate products within a product category into uniform sub-categories
e.g.,
Fruits
Benefits
Butter
Consumer information
Eggs
Clear commercial transactions
Honey
Futures contracts
Ghee
Pool ability of products in shipmen
Types of Standards
1. Mandatory
Interstate vs. intrastate transactions
2. Permissive (recommendations)
3. Tentative
Grading: Requirements and Standards
Use of National Grading is usually not followed & required
Tradition
Cost (under some circumstances)
Redundancy with other grading standards

 Possible inhibition of innovation

Grading Criteria:
Importance of characteristics to consumers
Accurate and uniform measurement
Meaningful terminology that clearly describes
Meaningful distribution of product between grades
Reasonable cost
Components that Determine Market Access

Classification of Technical Barriers by Policy Instrument

Import bans
Total bans
Partial bans
Technical specifications
Process standards
Product standards
Information remedies
Packaging standards
Labeling requirements
Controls on voluntary claims

FOOD STANDARDIZATION AND GRADING

Grading and standardization is well understood and practiced at all India level for engineering and
consumer goods. It is yet to become popular for rural producer.
Efforts are made by standard organization to popularize the standards. Agmark is one of the
important step in popularizing quality moment by gradation.
There are many advantages of grading. The important one is to obtain fair price to producer and
justice to the consumer.
Agmark grades give full specifications of products for various commodities. These are yet to
become with farmers and consumers.
Bureau of Indian Standards, ISO, also have develop the grades and standards for agro produce

which are to be made popular.

Both producer and consumer awareness to grades need to improve a lot, media of TV, newspapers
to be used to give to give publicity. At the same time awareness regarding misuse of labels is to be
created.
The role of Agriculture Universities, Co-operative moment, Village Panchayat is very important in
spreading awareness information and knowledge regarding grades and standards for commonly
used agricultural produce.
STANDARDIZATION
Standardization is the process of fixing certain norms for the product. These norms are established
by customs or tradition or by certain authority. It involves determination of basic characteristic of a
product on the basis of which the product can be divided into various groups. It also means
determining the standard of product to be produced with regard to size, color, form, weight, shape
and quality. Standards are model products which form the basis of comparison.
Without standardization the rule of caveat (law) prevails and there may be confusion and
unfairness. The term of standardization is used in a broader sense. Standardization is a application
of standard to goods meant for marketing with a view to further sub dividing them into several
grades or classes. Thus standardization means making the quality specification of the grade uniform
among buyers and sellers over space and time.
According to National Commission on Agriculture standardization is defined as, the determination of
basic limits or grades in the form of specification to which manufactured goods must conform and a
class into which the product of agriculture and the extra active industries may be sorted is known as
standardization.
Basis of standardization:
Agricultural goods are standardized on the basis of different factors, based on which they are
classified into different grades. The following are some of the factors on the basis of which
standards are set:
1) On the basis of quantity, weight and measures.
2) On the basis of size and shape.
3) On the basis of color such as apples.
4) On the basis of quality such as foodgrains and cotton.
Standardization in Material Management:
A standard is defined as a model or a general agreement of a rule established by authority, or
custom, created and used by various level of interest. For instance, an individual may be the
starting point of using standard and then his department will use the same standard to suite its
needs. The standard could cover a variety of industries such as engineering, textile, chemicals,
pharmaceuticals, agricultural as also education. The topics covered under standards can include
purchase contracts, forms, sampling, testing, safety measures, etc.
We are aware of use of standards for specifying the items, specially for purchase purpose. Market
grades, commercial standards, performance specifications are the popular examples of wide range
application of standardization. With standardization more then one manufacturer can supply and
this will be implied better availability, better price and better delivery. Standardization also implies
regular available to reduce purchase efforts, less stock and less obsolete items. It also means less
inspections efforts as a matter of fact many organization do not check routine items bearing ISI
marks in very detail manner but resort to inspection of only a small fractions of items. It is also
possible to enter into rate/running contract with standard item.
Process of standardization leading to Variety Reductions:
The process of standardization leads to simplification of variety reductions. These implies reduction
necessary varieties and standardizing to be most economically sizes, grades, shape, colors, types of
parts and so on. The process of standardization and variety reductions as follows:
1) Prepare the list of all the items use to make the final product. The list can be made out of the

design blue print in case the product design is just over but production has not started, or from the
actual record of consumption incase the product is in production.
2) Classify the items according to their performance and dimensional characteristics.
3) Group the items with similar functional characteristics and then subgroup according to major
dimensional values. For example all bushes around 5 cm dia. Will be in one group. While all around
3 cm dia will be in other group and so on.
4) For a group of items with similar functional characteristics, study the dimensional features. In
case of large number of items, several items with the same and similar functional requirements are
likely to show the dimension clustered in much closed vicinity. If the performance characteristics are
within satisfactory zone, these items are produce of the same dimensions. This a very important
step in variety reduction.
5) If performance is acceptable, the items has been standardized according to the National or
International standards. If the performance is not satisfactory, organization will adapt a local
standard, the dimensions being of the representative value.
ADVANTAGES OF STANDARDIZATION:
1. Uniformity in quality:
With standardized goods, there is homogeneity and consistency in quality. Hence, a consumer can
buy a product without much hesitation and risk as the quality of product will not change over a
period of time, thus leading to better goodwill.
2. Differential pricing :
When goods are standardized and classified into various types, one can used differential pricing for
different grades of the product. Thus assuring better return to both buyer as well as seller. E.g.
Dettol and savlon
3. Increased in demand:
As there is uniformity in size, form, quality and utility of all products of an enterprise, the customers
rely on these products. Sale of standardized goods increases.
4. Elimination of risk:
The standards of products are determined keeping in mind the habits, tastes and nature of
consumers and the risk of selling standards goods is reduced.
5. Expanding the market :
There is large-scale production of standard goods which results in many types of saving in
production , distribution , advertising and sales promotion because of these the manufacturer is in a
position to produce best quality goods at minimum cost thus attracting a number of customer.
6. Availability of finance :
Finance can be obtained easily for standard goods as financial institution prefer giving finance to
those enterprises who deal in standard goods.
7. No need for inspection:
There is no need for inspecting the quality of a product as the form of size, quality and utility of all
the products in a lot are uniform in all respects and the consumers are convinced with it.
8. Standardization helps to reduce inventory items
9. It helps in evolving better means of communications about an item in the company.
10. It forms a base for the inventory analysis.
11. The specifications of items can be more clearly spelt out, making quality control.
12. In a developing economy like ours, where the need is to promote exports insistence on
standards helps in creating confidence in the international market.
13. By using National standards, it is easier to locate sources of supplies and in the case of machine

parts; the placements can be obtained easily. It could also be used in advertising the products as
well as spare parts.
GRADING:
Grading means sorting of unlike lots of produce into different lots according to quality specification
laid down. Each lots has substantially the same characteristics as far as quality is concerned.
Grading is an important function of standardization. It implies the division of products into classes
made up of unit possessing similar characteristics of size and quality. Grading is mostly done in case
of raw materials, mineral products and agricultural products. There is no need to divided industrial
product as they are produced according to pre- determined standards. There may be difference in
quality or size or shape or characteristics of the products. The grade standards for commodities are
laid down first and than the commodities are sorted out according to accepted standards. Grading
helps the producer to get proper prices for these products because different price may be fixed for
different lots.
Grading is categorizing the produce into different lots, each containing similar characteristics. The
characteristics could be one or more of the following type:
Size Big, medium, small, long, short, roundish, oblong etc.
Flavour which in turn speaks of taste or class
Ripeness raw, semi-ripe, ripe in case of fruits, oilseeds, pulses and cereals.
Length of staple in case of cotton and jute.
Location oriented like Goa Alfanso, Bydagi chillies, Baiganpalli mango, and Nagpur orange
Nasik grapes having specific tastes, shape, colour etc.
PURPOSE OF GRADING
It is a means to describe the quality of produce for sale/purchase activity
It protects consumers from unfair trade practices by traders or farmers and also enables farmers
to get price as per quality and grade
It works as a basis for fixing price and premium price as per quality
GRADING SYSTEM
ADVANTAGES AND IMPORTANCE OF GRADING:
Grading in general is helpful to all the stockholders in agro-related activities: the farmers, traders,
co-operative and the ultimate consumers. The advantages of grading are:
1. Production of Large Scale:
Goods are produced on a large scale, as grading of goods helps in increasing its demand. It
becomes easy for a producer to produce these goods on a large scale as goods are graded.
2. Increase in Sales:
Customers do not bother to enquire about the goods graded, as they are very easy to be sold.
Therefore, marketing of graded goods becomes easy.
3. Quality Certainty:
Certainty provides producers a reasonable price for their products and provides standard goods of
uniform quality to customers at reasonable prices. It helps the producers as well as the buyers.
4. Helpful In Financial Management:
For the financial management of the enterprise graded products are very helpful. These products
can be used easily, as security loans can be arranged as security of these products.
5. Helpful in Future Contracts:

Supply contracts may be entered into future for graded products as the identification of graded
products become easy and different types of products are divided into different groups.
6. It makes price more reasonable to grades and there will be difference in price as per quality.
7. Simplification of storage and marketing of different grades.
8. Loans can be given based on stored goods as per the grade and
9. Easier to understand quality available for each grade in case of bulk sale.
10. Based on grades, quality and quantity, it is easy to estimate value for loans against stock.
11. Price comparison by consumers is easy to due to grade identity. The buyer expects least or no
risk in his purchases.
12. Grading helps to create perfect competition in the market as it will set a good standard of
equivalent grades and materials competition.
13. Overall marketing cost can be reduced as repeat evaluation, spot separation (grading) and
doubts in the mind on consumers are avoided.
TYPES OF GRADING:
Grading may be done on the basis of fixed standards or variable standards. It is of three types:
1. Fixed or mandatory grading:
Under this the goods are sorted out according to the size, quality and other characteristics which are
of fixed standards. These do not vary over time and space. It is mandatory for a person to follow
these grade standards if he intends to sell graded products.
The Agriculture Marketing Advisor Government of India has fixed grade standards for a number of
agricultural commodities and it is compulsory to grade the produce according to these grade
specifications. The use of mandatory standards is compulsory for export of the agricultural
commodities to various countries.
For many of the agricultural produce, certain grades and standards are fixed by Agricultural
Marketing Advisor, Government of India. This is done for having and maintaining high standard and
clarity of quality in case of exports of agro-produce. Farmers are not free to use their own standards
and classifications in case of exports. The Government of India has made standards based on size,
quality and other characteristics which are fixed standards hence mandatory for exporters.

2. Permissive or variable grading:

Under this the goods are graded according to the standards which vary over a period of time. The
grading specifications are fixed in over time and space in this case but changed every year
according to the quality of the produce in that particular year. In India grading by this method is not
permissible.
3. Centralized/decentralized grading:
Under the centralized grading system an authorized packer either sets up for his own laboratory
manned by qualified chemists or seeks access to an approved grading laboratory set up for the
purpose by state authorities or co-operative association or private agencies. Grading in respect of
commodities such as ghee, butter and vegetable oil where elaborate testing facilities are required
for checking the purity as assessing the quality has been placed under the centralized system.
The directorate of Marketing and Inspection exercise close supervision on grading work of the
approved chemist by way of periodical inspection of grading stations and the quality of graded

produce. Under this system, the state marketing authorities under the overall supervision and
guidance of the directorate of marketing and inspection implement the decentralized grading
system. This system is followed in those commodities which do not have elaborate testing
arrangements for assessing the quality.
Eg. Vegetables, fruits, eggs, pulses and cereals, the grades for these produce are determined on the
basis of physical characteristics. Both these grading programmes are consumer oriented. In addition
to these programmes, the state marketing authorities also implement a grading level. Free grading
services are provided to farmers for sorting the produce.
4. Grading at producers level:
Under this programme, free grading services are provided too the farmers for sorting the produce
before offering for sale. This enables them to realize prices commensurate with the quality of
produce. Several regulated markets and warehouses are manned with grading personnel with the
central assistance.
Farmers on their own also do grading, which is actually categorizing as per their own thinking. They
do not have an idea of standards and grades as per DMI. Farmers do only from the point of view of
getting fair rates to their produce. Marketing agents also develop some expertise in gradation of
agricultural produce and their opinion is given importance in price fixing and negotiations.
EXAMPLES OF GRADING
Easiest way is to do grading at the farm level. Immediately after harvest, the farmers must go for
grading which is generally based on size, color and variety. This will help them to get better rates
and fair returns as per quality. Simple gradation of size viz., watermelons big, medium and small,
betel leaves big and small, bananas variety wise, orange size wise, potatoes size wise, rice size,
broken pearl like brownish etc. At rural places, the labour charges will be economical and gradation
done at that stage makes further processing and marketing easier.
It is seen in the market that the same variety of mangoes but big in size is sold at Rs.20 per kg
whereas small size is sold at Rs.15 per kg. The taste is the same. The difference is in bigger
mangoes where the eatable portion is more compared to smaller ones and the seed size will be
same. This gives a simple example of direct advantages of grading.
Once grading is done and exhibited in term of size, color and freshness, no more explanation is
required as visual observation of the consumer is adequate.
Problems in Standardization & Grading:
The techniques of standardization and grading have not been developed fully in India. There are
various problems in their way. Some are as follows:
1. Lack of Standards & Grades:
One difficulty in the development of standardization and grading is that for many products
standards have not been developed.
2. Misuse of Standards & Grades:
It is seen that many producers use standards and grades in an authorized manner. There is lack of
feeling of responsibility and national character among our producers and it is a big hindrance in the
development of standardization and grading
3. Lack of Public Consciousness:
Lack of public consciousness is the problem in the way of development of standardization and
grading in our country. The reasons for lack of public consciousness are (i) low standard of living,
(ii) Illiteracy, (iii) Dominance of rural population.

4. Lack of Testing Facilities:

This is also a great problem in development of standardization and grading. Manufacturers feel the
difficulty if getting these standards and grades to be tested.
5. Lack of Facilities:
There is lack of proper facilities for standardization and grading. Many industrial enterprises and
manufacturers do not like to indulge themselves because of this reason.
The grading of agriculture produce has not made much progress in our country for the following
reasons
1. Some the agricultural products are perishable and even graded products, by the time they reach
the consumers, deteriorate in quality resulting in customer complaints
2. Grading agriculture products is more difficult since the producer has to examine each and every
product for grading.
3. The producer does not get higher prices for graded products since the consumers are not very
quality conscious in most of the markets.
4. Common man does not understand the grading system.
5. Grades such as, C,D makes a negative impression with consumers although the difference may
be only marginal.
6. Consumer preferences vary and based on number of factors and are therefore very difficult to
meet their individual requirements.
Suggestions for making grading & standardizing popular
1. Grading & standardization have to cover all types of agricultural commodities and be made
compulsory for trading in agricultural commodities at all levels.
2. Samples of graded product should be exhibited in all markets for the benefits of traders &
consumers.
3. Create awareness about the benefit of using AGMARK products among consumers.
4. Highlight the benefit of selling graded products to the producers.
AGMARK
AGMARK is the acronym for agricultural marketing.It is a quality certification mark under central
agricultural produced (Grading & Marketing) ACT, 1937. AGMARK is done for commodities of internal
consumption like ghee, vegetable oil butter, etc.
The AGMARK label indicates the products meet curtain standards of purity and quality. Labels of
different colors are used to indicate the grade of the products. Strict procedures are followed and
rules are laid down to ensure conformity to the standards set as per the grade given. Quality check
and tests are done to maintain standards. With the help of such grades and standards, products
produce can be sold through the right channel and the right prices. Also, the consumers are ensured
value for money and can comfortably by a product without fear.
PRODUCERS PROBLEMS IN GRADING:
Farmers in India are either illiterates or literates to the extent of reading newspapers. Asking them
to do high quality work is difficult task. Some of the feelings and constraints in grading at the
producers stage are as follows:
The agricultural produce is perishables and some are fast perishables. Hence there is very little
the producers can do about perishables like milk, butter, ghee, fruits and vegetables.
Producers, especially small and marginal farmers need money and they cant delay the goods sale
for grading work etc.

 To get uniformity of production in vast area is partly not in control of the farmers. Out of 20 acre
land, the produce quality and size may vary from one end to another. The effect of water and
manure varies from point to point.
There could be side effects of pesticides in some portion of the crop area. Hence to get standard
produce is not always workable.
It is felt that in case of grains, grading is not required as the buyer of grains goes by feel and
rates. Perhaps grading is required only for exports.
The expectations, cooking methods, spices type, etc. change from region to region and hence to
make uniform grades is difficult.
Efforts To Popularize Grading:
The NAC (National Commission Of Agriculture) was consulted to give suggestions to improve the
grading work by popularizing it.
There should be adequate training for graders and people with agricultural knowledge should be
encouraged to become qualified graders. Only this way there is a possibility of making the grading
system more efficient.
All agro and rural commodities should be covered for grading. Standards of grades should be
formed wherever the same are not available.
Now grading is compulsory for exports NAC has suggested to make grading and standardization
compulsory for local sales also for all agricultural commodities.
There should be only one agency to formulate grades and standards. This will create uniformity.
As model examples, the samples of graded materials should be kept for display in important
markets for easy understanding of the grades.
The authority of the Central Government Agency (DMI) and state marketing federations should be
made very clear, avoiding duplication.
CONSUMERS PERCEPTION TO GRADING
:
Consumers incase of agricultural products are full population of the country. Food is the basic
requirement and rural produce like grains, fruits, vegetable, milk and milk products etc. are all food
items. Before giving details about perception, the consumers can be categorized as follows:
Consumers in category 1 and 2 are aware of grades, standards, can read labels and slips and be
choosy. This category appreciates the gradation and pays accordingly. They mostly belong to rich
and/or salaried category.
Consumers in category 3 and 4 are either not aware or not bothered about grades and standards
of food products and agro-products. Normally this category people are poor and very poor and
majority of Indias population is in this category. Hence, AGMARK grade is not known to majority of
the population. It is very difficult for them to understand the grades nor are they interested.
Consumer confidence in grade is not high as most of these produce are perishable with time. Also
few traders indulge in unfair practices, thus creating doubt in the consumers mind about genuinity
of grades.
Wherever expiry date is put on the label, the items should be taken out of the shelf once the
expiry time is reached much after expiry date, resulting in loss of customer loyalty.
In busy shops, customers do not have time to read labels. Also grades are A, B, C, D or I, II, III,
and IV. A customer is not aware of the difference in these categories. A new method needs to be
developed to infuse confidence.
The control measures are not adequate for misuse of labels.
Indian Standard Institute (ISI):
ISI came into existence in 1940 as the consequence of industrial conference held at that time. In
January 1947 government of India established Indian Standards Institute under industrial
development plan. Institutional head office is in Delhi.
Structure of the organization:
ISI is managed by the Board. The ex-officio chairmen is the Industrial Development Minister of
Union of India, central government, state government, education and research institution testing

laboratories different industries and developmental boards are its representatives. There are five
departments of ISI:
(1)Engineering, (2) Construction, (3) Economics, (4) Weaving and (5) Agriculture.
Functions of ISI:
1. Giving suggestions in respect of the product
2. Conducting necessary researches and experiments in field of standardization
3. Determining standards of different products at National and International Level
4. Suggesting in request of products
5. Making the standards popular
6. Checking new products and determining the standard mark for them
7. Developing a feeling of competition for the purpose of promoting the production of high quality
goods.
8. Collecting necessary data.
Indian Standards Institution Act, 1952:
ISI ACT was passed in1952. This ACT gave power to the institute to the test the quality and
characteristics of agriculture product and mark them with AGMARK. It also gave power to the
producers of quality product to use mark 959.
Progress of ISI:
ISI established its own network of testing its laboratories at Delhi (Sahibabad), Mumbai, Kolkata,
Chennai, Chandigarh and Patna. This institution also gives training to the engineers. Government of
India has launched a scheme of compulsory quality control for export promotion. In this scheme all
products which are to be exported must be quality prescribed by the institution. ISI has established
liaison with national standard bodies of other countries both their technical work and in their policy
planning and its associated with International Standard Organization (ISO) and International Electro
Technical Commission (IEC). ISI is playing a very important role in protecting the interest of
consumer.
USE OF UNIFORM STANDARD
One of the main defects of unregulated market is the use of non-standard and arbitrary weight by
arhatiyas and brokers. This was used to cheat the farmers. Lack of uniform standardsin weights, will
containing to keep marketing in unsatisfactory condition.
In 1939, the standard weights was passed under which the state government promoted the use of
standard weight. But not the much head way could be made in this situation for different standard
weights were used by different state. Later on in order to bring about uniformity in weight, the
government encoded legislation and adopted the matric system of measures, in 1958.
Since 1962 the use of metric weight has been made compulsory. Inspite of this, one still finds old
measures still existing in some villages.
LEGISLATIVE MEASURES FOR IMPROVING AGRICULTURAL MARKETING:
The following ACT was enacted by the government to improve agriculture marketing in the country.
Grading of Commodities:
A) Agricultural commodities: The agriculture produces grading and making act 1937. This act
provides for grading and marking of agriculture commodities. The act authorizes the central
government to frame rules relating to fixing of grades standards and the procedure to be adopted
for grading the agriculture commodities included in the schedule. This act was amended in 1986.
The amended act seeks to review the provisions of the act strengthen the same with a view to
promoting and protecting the interest of the consumer and makes the penal provisions of the act
more deterrent.
b) For manufactured commodities: The Indian Standards Institutions (Certification Marks) Act, 1952
Manufacture products are graded in accordance with the standards laid down by the Indian

Standards Institutions established under the act and graded products bear the ISI label. The name
of the Indian Standards Institution has been changed to Bureau of Indian Standards (BIS) under the
Bureau of Indian Standards Act 1986. The scope of the activity has been enlarged with greater trust
to consumer protection improving the quality of Indian products and providing of larger networks of
testing and consultancy sevices.
Recommendations of National Commission On Agriculture:
The NCA had the made the following suggestion to make grading and standardization popular in the
country:
1) Grading and Standardization should be made compulsory for transactions in agriculture
commodities at all levels for local Interstate and export trade.
2) Grading and standardization must cover all type of agricultural commodities viz, livestock and
livestock products, crops including horticulture and plantation, fish and fish products, and minor
forest products.
3) The grading system should be made efficient and full proof. For this trained and well qualified
grades should be appointed.
4) Samples of graded commodities should be displayed in all the markets for verification by the
graders and participating consumers.
5) Duplication and overlapping of functions linked with the formulation of grades standards of
agricultural commodities should be abolished.
6) In order to avoid duplication the work should be distributed among the central and state
government.
Other Provisions of Grade Standards and Quality Specification:
Apart from the agriculture product (Grading and Marketing) act, 1973, there are few other legal
provisions which lay down standards for food products. Some of the important acts are:
1) The Bureau of Indian Standards (BIS). Under Indian Standards Institutions (Certification Mark)
Act,1952.
2) The Prevention of Food Adulteration Act, 1954
3) The Fruit Products Order, 1956
4) Solvent extracted oil, de-oiled meal and edible oil (control) order 1967
5) The Meat food products order 1973
6) Vegetable oil products (standard of quality) order 1975.
Standardization and Grading play a very crucial role in the marketing of products in India. Indian
agricultural products are going global and that means our products have to follow international
standardization norms and grading pattern as it differ from nation to nation. For e.g.; the
standardization norms in the European Union may differ from the US ones. Standardization and
grading play a very important role in the year of 2005 as India takes on the challenges of global
exports.
The grade standards should have common terminology and understood in the same manner at the
all India level. Grade standards set must be easy to understand, explain and measure whatever
they are measurable. The standards should have consistency so that frequent changes are not
required.

Food laws and Standards

Introduction

The Government of India is fully aware to the possibilities of food being adulterated.
It has therefore, empowered several agencies and promulgated a number of acts and
orders to contract the menace. Agencies and institutions have also been created to
lay down standards for the quality of foods. The manner in which the food is
processed and packaged is also covered by a number of regulations. Following
measures have been taken by the government to control the quality of food.
According to the Glossary of the terms published in 1976 by FAO/WHO food
standards may be defined as a body of rules or legislation defining certain criteria,
such as composition, appearance, freshness, source, sanitation, maximum bacterial
count, purity and maximum concentration of additives which food must fulfill to be
suitable for distribution or sale.
In public opinion the word standardization is often connected to the trend of
unification with an activity by which some people want to impose their ideas on
others. Standardization is the field of food production and trade is part of the effort
to protect the consumer.
Need of the food laws and standards
One of the most common problem of marketed foods is adulteration. The consumer
likes to get maximum quantity for as low a prices as possible. The seller must meet
these needs of buyer, in order to sell his product. In addition he should be able to
make profits to survive in the market. When the cost of food production is higher
than the retail price, which the consumer is willing to pay, the seller is compelled to
supply a food product of inferior quality. Also, many sellers supply inferior quality of
food products to make extra profits from their products. Thus adulteration occurs.
Adulteration is defined as the process by which the quality of the products is reduced
by the addition of inferior substances or removal of vital element. E.g, water may be
added to milk to increase the volume or fat may be removed from it.
Adulterant types:
Incidental adulterants (Sand, marble chips, stones, mud, table, chalk powder, water,
harmful color and Intentional additives (Pesticide residue, droppings of rodents,
metallic contamination e.g. Arsenic from pesticides, lead from water, mercury from
effluents from chemical industries, iron from metallic equipments)
Food regulations can be considered as the body of rules which may be official or
semiofficial or factory norms. These regulations are essential
-

To minimize the transmission of disease causing micro-organisms

through food chain, or occurrence of adulterants / contaminants of
health implication.
To limit the sale of unfair or sub standard products

To simplify marketing of foods.

Prevention of food adulteration act

One of the early acts to be promulgated in this connection was the Prevention of
Food Adulteration Act of 1954, which has been in force since June 1,1955. The
objective of this act was to ensure that food articles sold to the customers are pure

and wholesome. It also intended to prevent fraud or deception and encourages fair
trade practices. The act was amended in 1964 and again in 1976 in the light of
experience gained, to plug loopholes of escape in the Act and to insure stringent
punishment for those indulging in this nefarious practice.
The Act prohibits the manufacture, sale and distribution of not only adulterated foods
but also foods contaminated with toxicants and misbranded foods. A Central Food
Laboratory located at Calcutta and the Central Food Technological Research Institute,
Mysore has also been recognized for testing of adulterated foods. "A central
committee for food standards" has been constituted under the Act and has been
charged with the function of advising the Central Government on matters relating to
the Food standards.
According to the Act, an article of food shall be deemed to be adulterated.
1. If the article sold by a vendor is not of the nature, substance or quality
demanded by the purchaser and as it is represented to be.
2. If it contains any other substance or processed as to affect injuriously the
nature.
3. If any inferior or cheaper substance has been substituted wholly or in part for
the article.
4. If the article had been prepared, packed or kept under unsanitary conditions
whereby it has become contaminated or injurious to health;
5. If the article consists of any filthy, putrid, disgusting, rotten, decomposed or
diseased animal or vegetable substance or is insect-infested or otherwise unit
for human consumption.
6. If the article is obtained from a diseased animal;
7. If the article contains any poisonous or other ingredient which renders its
contents injurious to health;
8. If the container of the article is composed of any poisonous or deleterious
substance which renders it contents injurious to health;
9. If any colouring matter other than as prescribed and in amounts not within
the prescribed limits of variability is present in the article;
10. If the article contains any prohibited preservative or permitted preservative in
excess of the prescribed limits;
11. If the quality or purity of the article falls below the prescribed standard or its
constituents are present in quantities, which are in excess of the prescribed
limits of variability.
Administrative hierarchy
The Food Health Authority is appointed at state level who is the Director of Public
Health and Preventive Medicine. He is responsible for the good quality and standards
of foods available to the consumers.
Under FHA are the Local Health Authority (LHA). There is a Local Health Authority
appointed in each city in every state.
The food Inspector is appointed by the Central or State Government by notification in
official gazette. The Food Inspector undergoes a three months training in food
inspection and sampling.

Powers of food inspectors

1.To take sample of any food article from

Any person selling such article.

Any person who is in the course of delivering or preparing to deliver such
article to a purchaser or consignee.

A consignee after delivering of any such article to him.

2.To send such sample for analysis to the Public Analyst (PA) of local area.
Fruit Products Order
The Government of India promulgated a Fruit Products order in 1946. In 1955, the
order was revised. The Fruit Products Order (FPO) lays down statutory minimum
standards in respect of the quality of various fruits and vegetable products and
processing facilities.The FPO and PFA, are enforced by the Department of Health.
Meat products order
It provides means to:

a. Detect and destroy meat of diseased animals.

b. Ensure that the preparation and handling of meat and meat products be
c.
d.

conducted in a clean and sanitary manner.

Prevent the use of harmful substances in meat roods.
See that every cut of meat is inspected before sale to ensure its
wholesomeness.

The order also lays down rules and conditions for procedure to be adopted for the
selection of disease-free animals, slaughterhouse practices.
Cold storage order
The cold storage order, 1980, promulgated under the Essential commodities Act,
1955, has the objective of ensuring hygienic and proper refrigeration conditions in a
cold store, regulating the growth of cold storage industry and rendering technical
guidance for a the scientific preservation of food stuffs.
Standards
I.S.I. Standards
Various committees, including representatives from the government, consumers and
industry, formulate the Indian Standards Institution (ISI). Standards are laid for
vegetable and fruit products, spices and condiments, animal products and processed
foods.

The products are checked for quality by the ISI in their own network of testing
laboratories at Delhi, Bombay, Calcutta, Madras, Chandigarh and Patna or in a
number of public and private laboratories recognized by them.
The AGMARK Standard
The AGMARK standard was set up by the Directorate of Marketing and Inspection of
the Government of India by introducing an Agricultural produce Act in 1937. The
word AGMARK seal ensures quality and purity. A sample AGMARK seal is as below
AGMARK BESAN
SL.NO. B-162002
GRADE-STANDARD
PLACE OF PACKAGING.
DATE OF PACKAGING
NET WEIGHT..
The quality of a product is determined with reference to the size, variety, weight,
colour, moisture, fat content and other factors are taken into account. The grades
incorporated are grades 1,2,3 and 4 or special, good, fair and ordinary.
Export inspection council
The council has been constituted to check the quality of a number of food materials
meant for export. The council has powers to reject any food, which does not measure
up to the standards prescribed for the food. Canned food such as mango juice,
pineapple juice, frozen food such as shrimp, pomfrets are subject to scrutiny by this
body before export.