New Delhi: The Economic Survey 2024-25 has proposed the introduction of a higher tax rate on ultra-processed foods (UPFs), suggesting it as a potential “health tax” aimed specifically at brands and products that actively advertise these items.
Amid growing concerns over the worryingly rising rates of UPFs in the country, the report tabled in the Parliament Friday has also suggested that “stringent front-of-the-pack (FOPL) labelling rules are needed and to be enforced”.
The report has recommended that the apex food regulator, Food Safety and Standards Authority of India (FSSAI), could consider “setting standards for permissible levels of salt and sugar and ensuring checks for UPF brands to adhere to the regulations.”
Underlining that the consumption of UPF—high in fat, salt and sugar (HFSS)—is a big factor in undermining both physical and mental health, the report points out that globally, self-regulation has been ineffective.
According to a WHO report published in 2023, India’s consumption of ultra-processed foods shot up from about $900 million in 2006 to over $37.9 billion in 2019, at an annual compounded growth rate of over 33 percent.
“..If India were to realise the vast potential of its youthful population, their mental, emotional and physical health need to be nurtured,” says the survey.
Additionally, it has been stressed that there is enough research to show that the shift in dietary practices from unprocessed to semi-processed to UPF items exposes an individual to a wide range of adverse health outcomes, ranging from obesity and chronic inflammatory disorders to cardiovascular diseases and mental disorders.
The National Dietary Guideline 2024, issued by the Indian Council of Medical Research-National Institute of Nutrition (ICMR-NIN) identifies UPFs as food and beverage products that have undergone extensive industrial processing and contain a high number of additives such as preservatives, sweeteners, emulsifiers, and other substances that are not commonly used in culinary preparations.
These foods are generally energy-rich with high levels of sugar, salt and unsaturated fats and are nutrient deficient as they are made from ingredients derived from a limited variety of crops such as wheat or soy.
“The FSSAI should consider regulating UPFs with a clear definition and set standards, including stricter labeling requirements,” says the report.
Nutrition Policy expert Dr Arun Gupta, who is convenor of the nutrition think tank Nutrition Advocacy in Public Interest (NAPi) welcomed the proposed measures.
“The government can take urgent steps to curb advertising these unhealthy food products which invite obesity and diabetes. This will be a turning point in halting obesity and diabetes. The NMAP planned to halt it by 2025,” he told ThePrint.
A 2023 study by NAPi had recommended that efforts to curb the harmful impact of UPFs should be free from food industry influence.
It had also stressed that the Union health ministry should urgently define nutrient thresholds for sugars, salt, and saturated fats to regulate advertising, adopt warning FOPL and impose stricter marketing restrictions on unhealthy foods, especially targeting children under 18.
Quoting the study the report has suggested that the FSSAI and health ministry adopt these recommendations.
Also read: Why India’s new dietary guidelines limit sugar intake to 5% of daily calories, none for kids under 2
Top policy makers against junk food
If convenience, hyper palatability, affordability, longer shelf life and vigorous advertising and marketing strategies have made a conducive environment for the thriving business of UPFs in India, there is also a growing call to limit the unhealthy food choices, including by top policy makers.
In his “Fit India” speech at the opening of the National Games in Dehradun Thursday Prime Minister Narendra Modi emphasised the importance of addressing obesity from a young age to prevent it from becoming a public health epidemic.
“Today, I want to urge the nation to focus on two key things,” he said. “First, make time for exercise every day—whether it’s walking or working out, do whatever is possible. Second, pay attention to your diet. Reduce unhealthy fats and oils in your food. Aim to cut the oil you use each month by 10 percent. Small steps like these can lead to significant improvements in your health.”
The latest report meanwhile notes that the huge business of UPF segments has been built on hyper palatability of food items and marketing strategies involving misleading advertisements and celebrity endorsements targeting consumer behaviour.
Often unhealthy packaged food items are advertised and marketed as healthy products, it has said, adding that breakfast cereals, tetra pack juices and chocolate malt drinks, often advertised as healthy and nutritious, come under the category of UPF based on their ingredients.
The report further suggests that misleading nutrition claims and information on UPFs need to be tackled and should be brought under the scanner and says that setting standards for permissible levels of salt and sugar and ensuring checks for UPF brands to adhere to the regulations are also required.
(Edited by Zinnia Ray Chaudhuri)