|
You can get e-magazine links on WhatsApp. Click here
|
|
|
Regulatory, bureaucratic and other key hassles in Food & Beverage sector
|
Saturday, 16 February, 2019, 16 : 00 PM [IST]
|
Kamlesh Barot
|
One of the major perils of the Food and Beverage (F&B) segment is that, it is polarised due to the existence of organised and unorganised sectors. This is roughly in the ratio of 25:75 and as a result of this, the organised sector becomes and remains a soft target amongst all industries for enforcing any and all kinds of regulations. These are enforced not just by the regulators and authorities, but also by the public at large. This is despite the size of our industry which today is at Rs 337,500 crore.
In 2012, a new FSS Act with due deliberations between FHRAI (Federation of Hotel & Restaurant Associations of India) and the regulator was enforced across the country. This Act superseded any local Acts and laws running parallel at state levels.
At the time, as the president, on behalf of FHRAI, I had appointed Dr Pasupathy, food scientist, and a certified lead auditor on Food Safety Management Systems in the country, as our representative. Dr Pasupathy put forth all the hassles that we as an industry would face, if the bare Act was enforced.
However, by the time the regulators could appreciate our arguments for making changes in the Act, several issues cropped up and unfortunately, even today we are still stuck at various stages of resolving the same issues. An example being that the MCGM (Municipal Corporation of Greater Mumbai) duplicates the entire process regulating our F&B sector with their municipal licence under Section 394.
Also Excise plays a major role, not only in alcohol serving outlets, but also in establishments producing bakery products. There are independent properties that generate their own power, however even these establishments are not spared and are levied duties under one head or another by the different states in the country. F&B operators who are members of HRAWI in the state of Maharashtra follow the strategy of ‘Responsible Bartending’ yet, many have to face hassles as listed below: • Maintenance of manual records • Maintenance of ‘Drinking Permit’ for alcohol consumption on health grounds, only in the state of Maharashtra • Maintenance of demarcation of permit room - eating areas, guest to access the permit room only through the restaurant • Maintenance of ‘Nokarnama’ for employees • Observe ‘dry days’ more than once a month • Payment of increased licence fees every year • Cannot purchase stocks from FL-II licensees, wine shops • Inspection by officers even during operating hours • ‘One Day - Club Licence’ for hosting parties • One licence for one outlet, not common for all outlets in the entire establishment • Renewal of licence every year • Restaurants in terraces cannot serve food and liquor
These statutory laws and regulations are conveniently enforced on the organised players while the unorganised players have a field day. The unorganised sector may not be considered as direct competition to the organised players, but the fundamental premise of enforcing a law is to ensure safety and hygiene in F&B and which should be the same for all FBOs.
Presently only the organised players are responsible for hygiene and safety for which they have to go through the hassles of maintaining the archaic systems while the hundreds of thousands of hawkers in the city do not have to put up with any of it.
Also for banquets, weddings or similar events, despite already having all the required permissions the hotel or restaurant property needs to separately obtain a ‘Performance Licence.’ This licence in turn requires a fresh Fire NOC, PWD NOC and so on, all over again which is merely a repetition of the existing licences and really does not make any sense.
In addition to the above mentioned, following are a few other bureaucratic hurdles in operating F&B outlets:
- Hassles of guest car parking by valets when VIP movement takes place
- Nominee directors on MNCs hassled for trivial offences like metrology
- Covering of terraces with a monsoon shed no higher than four feet height
- Fire renewals need Form B applicable only for our industry, not for other commercial establishments
- If the front, rear and side open space is utilised by a restaurant then the regulators start harassment
- Extortionists in the form of complainants to the regulators hassle if they are not paid
(The author is past-president, Hotel and Restaurant Association of Western India [HRAWI])
|
|
|
|
|
|
|