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India: Industry divided over impact of new packaging norms on prices of foods

The new packaging norms – the Legal Metrology (Packaged Commodities) Rules, 2012, under the Legal Metrology Act, 2011 – which will come into effect on November 1, may or may not spell additional financial burden for the food processing industry, but the packaging industry seems to be awaiting them as a means to foist competition.

Meanwhile, according to the ministry of consumer affairs, food and public distribution, the new norms have been formulated keeping the consumers’ interest in mind.

Some representatives of the packaging industry feel that the new packaging norms will encourage competition and also shoot the prices of many products and the burden of it will be passed on to consumers.

They added that the companies would no longer have the window available to tweak grammage, in case the raw material prices increase. This will mean they will have to increase product prices to avoid eroding margins.

While most companies are bracing up for the situation, Godrej Consumer Pvt Ltd (GCPL) and Dabur officials are saying that there will be no immediate impact on pricing.

P G Potnis, general manager, GCPL, informed F&B News, “There will be no impact on pricing.

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