Certification haze hits nutraceutical exporters

HYDERABAD: The lack of clarity on the certification process for their products has dealt a serious blow to Indian exporters of dietary supplements and nutraceuticals, who are now unable to ship newer products abroad or renew licences for older ones.

Since 2011, when India, which merged many Central Acts of various ministries to form the Food Safety and Standards Authority of India—there has been confusion on which authority is responsible for issuing the export certificates for supplements and nutraceuticals. Earlier, the export certificates were granted by various local authorities under the Prevention of Food Adulteration Act.

Some 500 Indian companies, who collectively export about. 3,000 crore worth of products, are now finding the going increasingly tough as hundreds of licences issued before the new regime have expired and many dozen licences are set to lapse by the year end.

The Union commerce ministry has recently taken up the matter with the health ministry, which supervises the food standards Authority , on the immediate need to sort out the issues relating to export licences.

PV Appaji, director general of Pharmaceuticals Export Promotion Council (Pharmexcil), said the nutraceutical companies need a “Certificate of Nutraceutical Product” and free sale certificate for exports, especially to regulated markets. India reported exports of . 79,500 crore ($14.5 billion) of pharmaceuticals, including dietary supplements and nutraceuticals , in 2012-13 .

“There has been a lot of uncertainty over the licensing authority , which is hampering our exports significantly. Some of our licences have already expired,” said Akkshay G Mehta, managing director of Mumbai-based leading nutraceutical firm Mission Vivacare.
Mehta said his company suffered a steep fall in export revenues over the past two years. He said the sector is growing at some 20 per cent a year now as against the potential of some 50 per cent. “The Indian nutraceuticals sector has a potential to reach exports of . 10,000-12 ,000 crore over the next five years.” Though nutraceuticals sector is still evolving in India, globally it has an attractive market size of over $70 billion.