Visakhapatnam: India is aiming big to make its presence felt on the Nutraceutical world map and the recent measures taken up by the Government of India, including the formation of a Nutraceutical Task Force, to help India’s Nutra-Inc (Nutraceutical industry) reach its target of becoming 100 billion USD (United States Dollars) nutra hub by 2030. While measures are being taken in this direction to facilitate the requisite growth and create an ecosystem, there is one major issue troubling the sector; whether to take the halal route or go otherwise.
The recent measures by the Uttar Pradesh Government have been seen by some as a regressive step, but the application of the concept of halal, being expanded from the food and beverages sector to the pharma and now to the nutra-sector has baffled many.
Moreover, the whole idea of religious bodies certifying medicines, vaccines, processed foods and herbal-based herbal-dietary supplements and lab extracts as being halal compliant has raised many an eyebrow and rightfully so, as this literally means bringing the Sharia into areas and fields, which have a direct bearing on the health of individuals and societies at large.
In India, the halal certifying bodies have to be provided accreditation by the NABCB (National Accreditation Board for Certification bodies). However, so far, it is not mandatory for nutraceutical products to receive halal certification for domestic sale or export, or for that matter, products imported. The only certification required is from the FSSAI (Food Safety and Standards Authority of India).
The recent ban by the Uttar Pradesh Government has also raised questions regarding the legal authenticity of many of these companies, trusts and bodies issuing such certifications and the eligibility of the people and their credentials running these companies and trusts. Moreover, major questions are being raised in searching for halal-compliant measures, when it comes to life-saving drugs, vaccines and immunity-boosting nutraceuticals.
While this controversy rages on, there are some who believe that the entire process of halal certification must be streamlined to ensure that Muslim consumers do not break the rules of Sharia and to ensure that there is greater penetration of vaccines and nutraceuticals in countries with majority or substantial Muslim populations.
To understand the dynamics and the size of the halal-nutraceutical and vaccines market, the recent figures state that halal-certified nutraceutical products amount to constitute close to 15% of the entire nutraceutical world market, valued at 430 plus USD Billion, with market projections suggesting that the value could easily double in the next 10 years. The value of halal-compliant nutraceuticals and vaccines is slated to be roughly 63 billion USD and is estimated to touch the 130 USD billion mark by the year 2033.
This obviously begs us to ask the question – can the concept of halal be applied to nutraceutical products, vaccines, and pharma- products? If not, then why are many of the big firms, across the globe going in for halal certification?
The answer – halal certification is not a pre-requisite for the sale, export and consumption of any such products as at the end of the day it is for the consumer to choose the product he wants. However, in the last 15 years, greater awareness among consumers, regarding products and their composition has obviously led to the residents of many Islamic nations, asking the question, of whether these products were halal compliant or not. This situation eventually led to the formation of the IHAF (International Halal Accreditation Forum), in 2016 with the twin purposes of protecting halal consumers and facilitating compliance through accreditation and to facilitate international trade.
The IHAF in cooperation with the International Accreditation Forum has signed an MoU with the ILAC (International Laboratory Accreditation Corporation) to ensure halal and sharia compliance. The MoU was signed in 2018 and ever since many companies and MNCs have complied.
Impact of Covid-19- Another major factor that has accelerated halal compliance was the COVID-19, pandemic. Many questions were raised on the halal compliance of some of the vaccines available, leading to hesitancy in availing the shots. This eventually led to fatwas being issued in UAE and Egypt permitting the use of vaccines, declaring the vaccines as halal. Moreover, it was not just the vaccines, even the immunity-boosting nutraceuticals, which were being consumed in all-time high quantities were also verified, and eventually, those that complied with the halal certification norms were approved.
Ensuring that they do not miss out on tapping the potential of the markets in the Middle East and the Asia-Pacific (potential markets for Indian companies), where there is a sizeable Muslim population, many companies have opted for halal compliance.
Numbers do matter – Muslims constitute 24.4% of the global population and by 2033 are slated to number 2.2 billion. This combined with the higher population growth rate among Muslims, many businesses believe that halal compliance is the only way to enter these markets. Moreover, both the Asia Pacific and the Middle Eastern regions are home to consumers with a high spending capacity. According to reports, the halal-certified foods, beverages, pharma and Nutra-products market could be valued at over 2.3 trillion USD, with nutraceuticals alone being potentially valued at 130 billion USD.
India, though not a major player in the nutraceutical sector as yet, is a major player in the generic drugs sector and an emerging player in the food and beverages sector, which finds itself in a spot of bother. China on the other hand is using the Asia-Pacific region as a launch pad for halal-compliant partnerships, with Malaysia turning out to be a major hub.
However, many fear that the halalisation of pharma and nutraceutical industries could lead to religious apartheid and exclusion based on the principle of compliance and non-compliance. After all, when, vegetarian products need to be halal certified, it basically means that Muslims have to be involved in the entire process, forcing companies to create exclusive employment space.
Moreover, many believe that the role of religious bodies in the certification process could lead to greater funding of terror. There are many who believe that the petro-dollar would no longer be required to fund religious extremism, looking at the scale of halal compliance in the larger food and health industry. The time has come for international bodies and trade forums to look at this issue seriously, to prevent potential repercussions and severe consequences.