Against Ultra-Processed Food Epidemic
Posted by admin on 2024-09-26 |
In
recent years, the global surge in the consumption of High Fat Sugar Salt (HFSS)
foods has emerged as a major contributor to health issues like obesity,
diabetes, and high blood pressure. A World Bank report revealed that 70% of
overweight and obese individuals reside in Low- and Middle-Income Countries,
with a 55% rise in rural areas worldwide.
Alarming Surge in Ultra-Processed Foods
India,
especially, has seen a big change in eating habits, with the ultra-processed
food sector growing at a staggering rate of 13.4% annually from 2011 to 2021.
Being the largest producer and consumer of sugar globally, India is facing a
worrying rise in HFSS food consumption. Shockingly, half to sixty percent of
edible sugar, salt, and fat produced in India are used by the processed food
industry, leading to over $30 billion in sales of snacks and soft drinks last
year.
This
growing trend not only poses serious health risks but also affects productivity
and economic growth. In 2017, the economic impact of overweight and obesity in
India reached $23 billion, a figure projected to skyrocket to $480 billion by
2060 if nothing is done.
HFSS Taxation: A Vital Intervention
The
need for HFSS tax comes from market failures related to HFSS consumption,
leading to negative impacts on society and individuals. Negative impacts
include increased healthcare costs, burdening public health insurance programs.
Internal impacts come from consumers' limited understanding, influenced by
aggressive marketing, resulting in unintentional harm. HFSS taxes can be a
targeted and effective way to change harmful consumption habits, as seen in
various countries.
One
of the most effective byproducts of the HFSS taxation is that it will nudge the
food industry to produce healthier products. Well-designed HFSS taxes can be
fair and financially neutral. For example, having different tax rates based on
the nutritional quality of the food can make healthier choices more affordable
and accessible.
The
point to stress is the importance of viewing HFSS taxation as a public health
necessity in India. Properly designed taxes can discourage HFSS consumption,
encourage healthier choices, and push manufacturers to make healthier products,
improve public health, reduce the burden on the healthcare system, and
contribute to the nation's well-being. To be effective, tax rates should be
different based on nutritional content, making HFSS foods face higher tax rates
than healthier alternatives.
Implications
The
current Goods and Services Tax (GST) system on ultra-processed foods in India
is not aligned well with nutritional content. Inconsistencies in tax rates on
items like sugary beverages, juices, and salty snacks fail to consider the
varying nutritional impact of these products
HFSS taxation can be a powerful tool in
addressing the growing epidemic of overweight and obesity. Globally, Countries
like Denmark, France, Hungary, Mexico, South Africa, the United Kingdom, and
the United States have already responded to the call and now have a tax levied on
HFSS foods. In India, taxation will create a more sustainable and fair food
system, prompting significant steps towards a healthier future for its
population.
