A notification issued by Food Safety and Standards Authority (FSSAI) has escalated tension in small businesses across the nation. Nearly two crore small and tiny shopkeepers in India will lose more than 75 percent of their business amounting to about 15 lakh crore per year because of a recent notification of the Central Government and these small and tiny traders who are already suffering with a huge backlash due to COVID-19 pandemic have been forced to face this economic pandemic. The Confederation of All India Traders (CAIT) has sent a letter to Union Health Minister Dr. Harshvardhan and Commerce Minister Piyush Goyal demanding withdrawal of FSSAI Rules and Regulations.

The CAIT said that the FSSAI on September 4, 2020 has issued a notification that states - food products high in saturated fat or trans-fat or added sugar or sodium will not be allowed for sale within 50 meters from the school campus in any direction. CAIT while strongly opposing the Regulations termed it as a ‘barbaric rules’ and said that it highly contravene the call of Prime Minister Narendra Modi for vocal on local and Atmnirbhar Bharat. Snatching business of small and tiny traders speaks the non-sensitivity of Government officials who are not sparing any effort in destabilizing the domestic trade of the country and FSSAI is an autocratic body which never consult the stakeholders before bringing any Rules or Regulations.

CAIT National President B. C. Bhartia and Secretary General Praveen Khandelwal said that across country

CAIT while strongly opposing the Regulations termed it as a ‘barbaric rules’ and said that it highly contravene the call of Prime Minister Narendra Modi for vocal on local and Atmnirbhar Bharat

about two crore small shops/vendors includes mostly neighborhood shops like general stores, pan shops, kirana shops and other small and tiny shops which keeps all kind of FMCG items to meet the need of neighborhood consumers. It would include food and beverages, other grocery, personal and home care items. To fulfill customer’s need, a complete mix of shopping basket is critical to stay relevant and viable. The demography of every city in the country is such that there will be no space where shops do not exist within 50 meters in any direction of any kind of school including nursery, KG, crèche, coaching Centre, mid-level and high level school & colleges and other types of educational institutions. As per the Rules nobody will be allowed to sale any product which is having sugar, salt or aerated water. Bhartia and Khandelwal said that these neighborhood shops were instrumental in playing the most crucial role during lock down in providing daily need requirements of the people. Not allowing these shops to keep the food and beverage products is bound to impact the sale of other items and losing the customer base. More importantly, it will reduce the footfall if shopkeepers are not able to provide a full range of products. Such a regulation dampens the very spirit of ‘Ease of Doing Business’ specifically for hardworking entrepreneurial class of small business owners and traders. They further said that this restriction will deprive that consumer’s base who make purchases for their daily needs. The CAIT has demanded the government to withdraw these non-practical rules and regulations which infringe the fundamental right of a person to conduct business activities of their choice. The government due to prevailing circumstances is not able to provide employment whereas the FSSAI is adamant to deprive people of their existing businesses.