Regulatory Asymmetry in Food Safety Standards
Eliminating the 'Ingredient Apartheid' in Indian Markets
Executive Summary
Multinational corporations leverage regulatory arbitrage to sell chemically inferior products in developing markets. We propose a 'Harmonization Mandate' to align FSSAI standards with strict EU protocols, ensuring Indian citizens receive equal biological protection.
The Arbitrage of Health
Global conglomerates currently operate under a dual-standard model: "Clean Label" products for the West (EU/UK) and "Industrial Formulations" for the Global South. This is not a cost necessity but a regulatory choice. The manufacturing cost difference between Titanium Dioxide (toxic) and Rice Starch (safe) is negligible at scale. The arbitrage exists because Indian policy permits it.
Proposed Legislative Framework: The Harmonization Mandate
We argue that the FSSAI should move from a reactive approval system to a proactive alignment system.
- Automatic Review Triggers: If a substance (e.g., E171) is banned by the EFSA (Europe) or FDA (USA) for safety reasons, it must trigger an immediate "Show Cause" notice for its continued use in India.
- ** Burden of Proof Reversal**: Currently, the state must prove an additive is harmful to ban it. The burden must shift to manufacturers to prove safety when a global consensus on toxicity emerges.
Economic Implications
Critics argue that stricter standards will raise prices. Our analysis of commodity markets suggests otherwise. The cost of treating the long-term NCD burden (cancer, auto-immune disorders) generated by these additives dwarfs the fractional increase in manufacturing costs. Clean food is not a luxury good; it is a prerequisite for a productive workforce.