Mumbai: The cost of your everyday spices could rise if small retailers pass on the additional expense of packaging following the Maharashtra Food and Drug Administration’s (FDA) enforcement order on spices. While wholesale traders at APMC Vashi expect little disruption to their business, smaller sellers and women’s self-help groups dealing in loose spices may face higher costs to comply with the requirements.
Packaging costs may burden small retailers
“As many wholesalers and retailers are already selling spices in packages for convenience, the FDA’s new move will add some costs for small retailers,” said Hiralal Shah, a trader at the APMC Vashi spice market. However, he added that the cost per packet comes down as the volume of packaging increases.
He added that apart from the cost of pouches, they may have to factor in labelling, sealing, weighing and labour, potentially squeezing their margins or pushing up prices for consumers.
Pouch prices vary by size
A packaging unit in Mahape said the cost of pouches varies from 50 paise to Rs 10 apiece, depending on size, quality and order quantity. Specialised zip-lock packaging can cost as much as Rs 25 per pouch when ordered in quantities of fewer than 1,000 pieces.
According to a representative of the unit, pouches for 50g–100g packs can cost Rs 0.50–Rs 2.50 apiece, while 250g–500g pouches can cost Rs 2–Rs 7. Premium kraft-paper zip-lock pouches cost around Rs 10–Rs 12 each, while bulk pouch material is priced at approximately Rs 196–Rs 300 per kg.
Packaging helps preserve spice quality
“Spices are delicate and valuable food products. Packaging helps protect them from contamination and preserve their quality until they reach the consumer’s kitchen,” said another trader, highlighting the importance of proper storage and handling.
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Loose spices account for an estimated 10% to 15% of retail sales, according to traders, while the Mumbai Metropolitan Region (MMR) has an annual spice trade valued at around Rs 8,000 crore.
Traders seek consideration for smaller sellers
The FDA’s enforcement drive aims to improve food safety and ensure compliance with prescribed standards. However, traders say the implementation should also take into account the financial burden on small retailers and self-help groups.
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