Why Govt cannot afford to let the Indian nutraceutical industry remain a sleeping giant

Covid-19 has proved that India has the potential to create a robust nutraceutical market that can be turned into a $25 billion industry. The ball is in the government’s court

As we scamper for vaccines, look to strengthen our immunity, and try to figure out our lives in the pandemic-induced lockdowns, I’m tempted to ask a few questions.

To those who take time out for the daily exercise/meditation/yoga sessions, I want to ask, ‘Why do you do so?’

From those who are very careful about their diet, I want to know, ‘What stops you from eating junk food?’

The answer, I’m sure, is to ensure a healthy body and mind, which go a long way in preventing ailments. Please keep in mind the word ‘prevention’ here.

While the West has woken up to the benefits of the nutraceutical industry (traditional and nature-based preventive care medicine streams) — a culture that has existed in India for centuries — it’s a bit of an irony for us Indians.

For, as a nation, we have for thousands of years practiced the science of preventive healthcare and medicine systems. Yet, we are yet to fully incorporate these as the first line of defense against ailments.

It’s like saying that because we have the fire brigade, we will not take care to prevent fire in our homes!

Which authority is best placed to help India reach its nutra potential?

I am often asked this question, and each time I have cared to answer it, I am only partially quoted. Hence, I am presenting my complete perspective here, and also urge the Government of India (GoI) to consider it.

Food Safety and Standards Authority of India (FSSAI)

Presently, the nutraceutical products fall within the purview of the FSSAI, which itself is controlled by the Ministry of Food Processing Industries (MoFPI). As a result, the nutraceutical industry indirectly comes under the MoFPI. But such a move hasn’t really been effective for the nutraceutical industry because the FSSAI is an authority that is still under formation and evolution.

Additionally, since India’s food market is vast and the food companies are expansive, the FSSAI’s priorities and resources are largely focused on the food sector. As a result, the nutraceutical market receives minimal attention and limited resources. The situation is not expected to change anytime soon in this scenario.

Is the Ministry of Health an option?

This might be an interesting option; however, the GoI should prove the nutraceutical sector with the kind of focus that it deserves; such as a Joint Secretary with independent charge. The main concern here is the fact that the focus of the Health Ministry is limited largely to India, whereas the nutraceutical market has a huge export potential; perhaps over $1 billion worth and growing.

Thus, the immediate need is to sharply and quickly define the sector and its products and identify the industry’s potential.

The fact of the matter is neither the MoFPI nor the Ministry of Health has shown acute stewardship in this direction.

For instance, the Harmonised System of Nomenclature or the HSN Code, the six-digit uniform code used for systematic classification of goods all over the world, needs to be established for the nutraceutical industry on a priority basis. The industry also urgently requires a centrally powerful authority to help interface on intra-ministry issues and resolutions, and to create an export chamber.

An ideal scenario

In my opinion, the best suited option for the nutraceutical industry to expand and flourish is the Ministry of Commerce and Industry.

It can play all the roles we expect and also house nutraceutical products under one of its running Export Promoting Councils (EPCs). For instance, Shefexil (Shellac & Forest Products Export Promotion Council) has the bandwidth to take this up.

Shefexil has many products that go into the nutraceutical industry and the industry associations are happy working with Shefexil, which already supports over 800 individual products with $2140.94 million worth of exports in 2018–19.

Additionally, a robust PPP approach could prove to be a game-changer for the nutraceutical industry. The government must explore and support research & development in this field and deploy the PPP model to deliver the benefits of these nutrients to the undernourished population of our country. This will boost domestic consumption, and as a direct consequence, the scale of the industry.

In an ideal scenario, under the purview of a Joint Secretary attached to the Ministry of Commerce and Industry, the nutraceutical stakeholders could establish a cross-ministerial task force with an aim to turn the nutraceutical market into a $25 billion industry for India.

This target is certainly achievable; all we need is an established authority ably supported by various ministries and bodies from agriculture, health, the Central Statistics Office, the Directorate General of Foreign Trade, the Health, Food & Dietary Supplements Association, the Ministry of Environment and Forests, the MoFPI, and the FSSAI.

A note of concern

The nutraceutical industry needs a massive push from the government and other bodies, and even with regards to the Ministry of Commerce and Industry’s intervention, I’d like to point out a concern.

I sincerely hope the Ministry will not consider splitting the nutraceutical industry into two parts wherein one part will come under the purview of Shefexil, and the other under Pharmexil (the Pharmaceutical Export Promotion Council of India ), which is the authorised Government body for the promotion of pharmaceutical exports from the country.

Such a scenario will again hand a raw deal to the nutraceutical industry. It will dilute the attention, may create roadblocks, and promote blame games, instead of facilitating exports and industry growth.

Let me remind you that prevention and cure are two sides of the same coin. By putting sole emphasis on cure, is the government missing the forest for the trees?

I for one remain very optimistic that the Government of India will realise the potential of the nutraceutical and natural products industry. Preventive healthcare, revenue generation, and a massive opportunity for employment creation not just in urban sectors but also in rural areas are just some of the benefits that the nutraceutical industry can provide.