Indian Fragrances and Flavours Industry Fears Losing its Ground to China

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Hyderabad : They are an essential part of our daily life, right from the toothpaste or soap up to condoms, every day we use them from morning to night in most of food we consume like bread, biscuits, or medicines, and the cosmetics and toiletries we use. Their presence is felt through their flavour and fragrance than the product itself. Unless, they are used in food, cakes, biscuits, chocolates, ice-creams, or even the soaps, detergents, creams, lotions, and the countless items we consume or use, these items cannot be sold in the markets. Therefore, they are the critical supplements and these aromatic ingredients called fragrances and flavours. They can mask, provide, enhance, and accentuate the taste or smell in whichever product they are added. However, the Indian Fragrances and Flavours industry is currently suffering heavily due to the extended lock down in the country. Their supply chains are completely disrupted, and the production has been badly hit due to the pandemic Corona Virus spread across India.

The Indian fragrances and flavours industry is considered one of the fastest growing industries globally and a significant competitor to China in terms of exports. However, due to the temporary lock down in the country, the Indian industry is fearing to lose its ground to China as the latter is currently operating in full swing while we are still in the lock down.

Speaking on the occasion, Mr. Rishabh Kothari, President, Fragrances & Flavours Association of India (FAFAI) said, “Our palette is very large. We are one of the biggest exporters and importers of ingredients. Due to the prevailing logistics issues in the country, as inter-state transportation is either restricted or difficult, there is a substantial impact on our industry. If the situation is not improved quickly, there will be a huge economic cost for us. China will benefit from the situation as we may lose some of our global customers to the neighbouring country which will result in a significant business loss and market share for us”.

According to Mr. Rishabh Kothari, amidst the pandemic it is difficult to accurately estimate the total quantum of losses, but he feels that production has been hit to an extent of 80% and exports and imports too have been similarly impacted. The growth of the industry, which was growing at over 10%, is likely to become negative both due to the lockdown during the pandemic and the consequent likely drop in demand for consumer products and processed foods in the rest of the year.

Although the fragrance and flavours products are treated in the essential category, as almost all products in the food processing industry as well as hygiene and cleaning products like sanitizers and hand-wash use them for providing better colour, taste and smell, the production and supply of products are currently disrupted due to the ongoing lock down. Fragrances and flavours are used in food, pharma, detergents, condoms, shampoos, soap, paste, agarbattis, perfumes, deodorants and many more.

-Odisha Age

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