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Current Position:Home » News » Processed Foods » Bakery & Cereals » Topic

Legal Metrology Act and its impact on the bakery Industry

Zoom in font  Zoom out font Published: 2012-07-17  Origin: fnbnews  Views: 136
Core Tip: Legal Metrology Act 2009 is an important legislative measure is 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. 

The Department of Consumer Affairs in the Ministry of Consumer Affairs, Food, and Public Distribution is the regulatory authority for the Legal Metrology Rules and The Legal Metrology (Packaged Commodities) Rules, 2011. 

Importers of packaged food products must adhere to these acts, including labeling the product. 

The Legal Metrology (Packaged Commodities) Rules 2011.
These rules are applicable to all pre-packaged commodities traded in India but not applicable to
(a) packages of commodities containing quantity of more than 25 kg or 25 litre excluding cement and fertilizer sold in bags up to 50 kg; and
(b) packaged commodities meant for industrial consumers or institutional consumers.
Explanation: For the purpose of this rule -
i) "institutional consumer" means the institutional consumer like transportation, Airways, Railways, Hotels, Hospitals or any other service institutions who buy packaged commodities directly from the manufacturer for use by that institution.
ii) "industrial consumer" means the industrial consumer who buy packaged commodities directly from the manufacturer for use by that industry.
GSR 784 (E)

On 24th October 2011, Ministry of Consumer Affaires, Food & Public Distribution has issued a notification under GSR 784 (E) which has removed the proviso to the rule 5 under Packaged Commodities Rule 2011.

What was this Proviso?
Proviso- Provided that if a commodity specified in the Second Schedule is packed in a size other than that prescribed in that Schedule, a declaration that 'Not a standard pack size under the Legal Metrology (packaged Commodities) Rules, 2011 or 'non standard size under the Legal Metrology (packaged Commodities) Rules, 2011' shall be made prominently on the label of such package.

What is Second Schedule?
Under the Legal Metrology Packaged Commodities Rules 2011, Second schedule has specified the name and quantities of standard commodities. This schedule covers some 19 commodities only.

As per Second schedule, following table is applicable for Bakery industry 

Second Schedule - Row 3 & 4 related to Bakery Industry.

3. Biscuits 25g, 50g, 75g, 100g, 150g, 200g, 250g, 300g and thereafter in multiples of 100g up to 1 kg.
4. Bread including brown bread but excluding bun. 100g and there after in of multiples 100g.

What is the impact of this GSR 784?
Bread and Biscuits need to be packed only in above pack sizes. Earlier relaxation about packing non standard sizes has been removed. This notification was supposed to be effective form 1st July 2012.

Since there are many non standard pack sizes already available in market and removing all of them is quite an impossible job, thus trade associations and industries have given representation to ministry and thus ministry has issued new notification.

GSR 426/7 (E)
On 5th June 2012, Ministry of Consumer Affairs, Food & Public Distribution has issued two notifications under GSR 426 & 427 (E) which covers mainly

1) Rule 5 proviso shall be omitted from 1st November 2012. ( extension for further 4 months)
2) Value based products up to Rs 10 can be packed in any sizes.
3) Waiver in case of promotional offer in case of combo packs.
4) Central Government may permit sell of non standard packs for period of one year. 
5) If package containing genetically modified food, it shall bear the word 'GM' on top of the principal display panel.
6) Amendment to Second Schedule.

Impact of GSR 427 
The Second Schedule was amended with respect to Bakery industry.

Second Schedule Amended - Row 3 & 4 related to Bakery Industry.


New packs added 
Biscuits 60 g, 120g, Above 1 kg, in multiple of 500 g up to 5 kg
Bread 50 g, multiple of 50 g up to 500g and above 500 in multiple of 100 g

Impact on bakery industry
1) The new regales are effective form 1st Nov 2012 with respect to Second schedule.
2) Bread and Biscuits can be packed only in prescribed sizes given in the revised schedule. ( please refer table above)
3) In case of biscuit the additional 60 g & 120 g sizes have been introduced. One can pack biscuit up to 5 kg and in multiple of 500 g above 1 kg.
4) Bread can be packed in multiple of 50 g up to 500 g and in multiple of 100 above 500 g.
5) Those who are already in trade with pack sizes other than those specified can apply to central government for one year extension.

What bakery industry should do further?
1. Apply for one year extension if required 
2. Use all packaging materials before 30th of October 2012

Conclusion
Every individual bakery industry should study the impact on their business and take appropriate action. Post November 2012, new Second Schedule requirement will be effective and time will tell us the benefits of these changes. More participation of stake holders is required before bring these changes since the cost of implementation of such changes is finally reflects on the consumer.
 
 
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