Parallel track and trace system of QR Codes: Punjab food cos have to bear heavy cost of implementation

ISLAMABAD: The manufacturing companies of food products in Punjab have to bear the heavy cost of implementing a track- and-trace system of QR Codes on food items under prevailing increased inflation, financial constraints, over taxation, and utility/input costs.

In a surprise move, the Punjab Food Authority (PFA) has decided to implement a track and trace system of QR Codes for tracking and tracing of details of food products sold in the province from food manufacturing companies. The purpose, according to the PFA, is to combat counterfeit elements and control unsafe food by forcing the food companies to install the said QR Codes system on their products backed by heavy cost.

The food sector across the board is confused over this ambiguity and is considering approaching the federal government against this unfair move of the PFA, which is implementing the said procedure on a fast-track basis.

In this regard, the PFA has started work on a war footing to implement the system in the Punjab province without taking into consideration the decision of the Council of Common Interest (CCI) on harmonisation of the food standards. Any further move in this direction will be a blatant reversal of the harmonisation of food standards, an initiative that took four years to materialise, and was overseen by both PML-N prime minister Shahid Khaqan Abbasi and concluded by PTI prime minister Imran Khan.

The decision of the CCI stated, “The CCI decided that in order to further improve the ease of doing business and harmonize quality and standards across the country, the provinces shall adopt National Standards formulated by Pakistan Standards and Quality Control Authority (PSQCA). Labeling and certification marks logo shall also remain with federal government/PSQCA. It was also decided that the registration of businesses for sale of food products, licensing of factory establishment for foods products, enforcement and monitoring of food products shall remain with the provincial governments. It was further decided that the agenda stands implemented and shall not be placed before the CCI regarding information of its implementation status.”

In line with the decision of the CCI, the PFA was required to approach the federal government for the implementation of a uniform and standard decision by all four provincial governments, Gilgit-Baltistan and Azad Kashmir. Contrary to this, the PFA has taken the decision in isolation, ignoring the National Standards Steering Committee formulated under the PSQCA, which was held in November 2022, in direction of the CCI decision.

The remaining provinces and federating units were not taken into confidence and the system has been implemented in isolation by the Punjab government due to unknown reasons within its own ambit.

Sources told Business Recorder that the PFA has taken the initiative at a time when the manufacturing companies are already facing a serious financial crunch due to inflation and higher cost of inputs and utilities.

The additional cost of implementing the track and trace system in the current economic situation is not clear. At the same time, the timing of the project is not clear taking into account the cost to be borne by the food sector in the province, existing pressure on foreign exchange reserves, restricting imports of spare parts, and other machineries.

Without any open and transparent bidding, companies have been asked to approach a specific foreign vendor for the installation of the system, industry sources said. The industry sources also cited that the issue of counterfeit food products and food safety needs to be tackled in a different way, as this system only targets organised food sector, completely letting the informal food sector off the hook in terms of food safety standards and counterfeiting. It is also imperative that the PFA undertaking any such measures should be without additional cost or burden on manufacturers.

According to the PFA, it is intimated that in a bid to combat counterfeit elements and control unsafe food. Food manufacturing companies licensed under MI and MH category by the PFA shall frame and execute QR Coding System for tracking and tracing of details: brand name, batch no, date of production, expiry date, location of plant, company’s profile, label approval status, product registration of that particular food item and/or any other information deemed appropriate its per international standard practices by printing overt, unique serialized QR Code on the food product, labels.

Moreover, food manufacturing companies shall integrate their track and trace system with the PFA’s ICT-based network/portal for access to food safety terms and other officers of the PFA, in addition to, making the respective QR Code accessible to the general public/consumer through an app/or any other appropriate means subject to the conformity of the adopted method with standard/international best practices. Therefore, the companies are hereby directed to implement the said track and trace system on food products.

As per regulations of the PFA, to prevent misbranded, falsely labelled, unregistered food product, counterfeited food and unsafe food, the Authority may subject to such terms and conditions specified in the regulations, classify and designate any food business or class of food business or any food or class of foods in respect of which monitoring or tracking of production, manufacturing, sales, import, stocks or any other related activity may be implemented through electronic or other means as may be prescribed.

From such date as may be prescribed by the authority, no food shall be manufactured, distributed, or sold by the food operator or any other person without affixing or printing a Unique Identification Number in the form of a Quick Response (QR) Code as part of a coding system to track the product label approval and registration status by the authority and to validate the product by implementing monitoring or tracking system through electronic or other means as may be prescribed.

It shall be mandatory for all food businesses to integrate their monitoring and tracking system with the authority’s ICT-based network/portal for access of food safety officer in the manner prescribed by regulations, the regulations added.

Copyright Business Recorder, 2022