New Delhi: The Economic Survey released Thursday flagged the growing consumption of ultra-processed foods in India, and recommended that the government consider increasing taxes for goods that exceed certain thresholds along with other measures.
Tabled in Parliament, the survey linked ultra-processed foods (UPFs) with worsening diet quality and higher risks of obesity, diabetes, heart disease and mental health conditions.
“There is a growing body of evidence on the impact of UPFs on human health, indicating that there should be no delay in implementing public health policies while further research continues to unfold,” the survey said.
Ultra-processed foods are industrially manufactured products that undergo multiple stages of processing and contain additives such as preservatives, flavour enhancers, emulsifiers, colours and sweeteners not commonly used in home cooking. Typically high in fat, sugar and salt but low in fibre and nutrients, they include packaged snacks, instant noodles, sugary drinks, reconstituted meat products and ready-to-eat meals.
According to the National Family Health Survey 2019-21, 24 percent of Indian women and 23 percent of Indian men are overweight or obese. Among women aged 15-49 years, 6.4 percent are obese, while 4 percent of men fall in the same category. Excess weight among children under five rose from 2.1 percent in 2015-16 to 3.4 percent in 2019-21.
The problem is expected to grow. The survey cited estimates that over 3.3 crore children in India were obese in 2020, a figure projected to rise to 8.3 crore by 2035.
India has emerged as one of the fastest-growing markets for ultra-processed foods, the survey noted, adding that sales grew by more than 150 percent between 2009 and 2023. Retail sales increased from about $0.9 billion in 2006 to nearly $38 billion in 2019, a 40-fold rise, it said.
“It is during the same period that obesity nearly doubled in both men and women,” the survey said.
Referring to the Lancet Series on Ultra-Processed Foods and Human Health, the survey said that high intake of such foods is associated with obesity, heart disease, diabetes, respiratory conditions and mental health disorders. The economic cost includes higher healthcare spending, productivity losses and long-term fiscal pressure.
It flagged marketing strategies that encourage overconsumption, use celebrity endorsements and present ultra-processed foods as healthy options, noting that children and adolescents exposed to such advertising report higher desire and intention to consume these products.
“Policies have so far focused on advocacy to reduce consumption of foods high in added fats, sugar, and sodium, many of which are UPFs. However, improving diets cannot depend solely on consumer behaviour change; it will require coordinated policies across food systems that regulate UPF production, promote healthier and more sustainable diets and marketing,” it said.
The survey referred to the National Multi-sectoral Action Plan for non-communicable diseases, which set a target to halt obesity by 2025 and proposed front-of-pack labelling and restrictions on advertisements of foods high in fat, sugar and salt. It also cited the Indian Council of Medical Research-National Institute of Nutrition Dietary Guidelines 2024, which warned against consumption of ultra-processed foods.
But, it said, there were gaps in enforcement. While advertising rules prohibit misleading claims, they do not define them using nutrient-based criteria, allowing companies to continue making vague health or energy claims.
“This regulatory ambiguity highlights a critical policy gap that needs reform,” it said.
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6am to 11pm ad ban among suggestions
Building on last year’s Economic Survey, which proposed a higher tax on ultra-processed foods and stricter front-of-pack labelling, the latest one went further in detailing policy options.
It suggested exploring a time-based ban on advertising from 6am to 11pm across media, including digital platforms, and restricting sponsorship of school and college events by makers.
On labelling, the survey referred to a multi-sector statement by 29 organisations that recommended warning labels instead of rating systems like health stars. “Studies have shown that warning labels are the most effective option for discouraging UPF consumption,” it said.
The survey also suggested the possibility of a nutrient-based tax, including the “highest GST slab and a surcharge on ultra-processed foods that exceed thresholds for sugar, salt or fat”, with revenues earmarked for public health programmes.
Summing up, the survey reiterated that “a multi-pronged approach is necessary”, calling on the Food Safety and Standards Authority of India to define ultra-processed foods clearly, set standards, tighten labelling norms and raise awareness, especially among young people.
(Edited by Prerna Madan)
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