BSTI license mandatory to retail fruit drinks, wafer

Business
BSTI license mandatory to retail fruit drinks, wafer
Fruit drinks and wafer biscuits can't be marketed or sold without the certification from the Bangladesh Standards and Testing Institution (BSTI), according to a government notification. 

The federal government has prohibited firms from advertising or retailing fruit drinks and wafer unless the merchandise is made in compliance with the national standards set by the BSTI, the industries ministry said in the notification on October 6.

This means that the makers of these items must secure the BSTI licenses first before releasing their products into the market.

"We have given organizations two months to comply. After December 6, none should be able to market the products without the licenses," said Sajjadul Bari, director for recognition marks at the state agency.

Before the notification, organizations didn't need to adhere to the national standards or get BSTI licenses to retail fruit drinks and wafer. The two items have a collective gross annual market value greater than Tk 1,000 crore, which includes practically Tk 300 crore wafer biscuit industry, according to a top industry operator.

Manufacturers welcomed the move.

Kamruzzaman Kamal, director for marketing at Pran-RFL Group, said that Pran, the largest player in the neighborhood fruit drink market, is definitely following BSTI standards voluntarily.

BSTI's announcement will increase consumer confidence in the products and accountability of the companies.

"So, it is a good move, particularly in Bangladesh's context," he said.

Kamal suggested the BSTI develop standards for more products, especially the things of higher consumer interest.

"Still, there are a large number of products for which there are no standards," he said.

The domestic market for fruit drinks is continuing to grow to about Tk 800 crore, attracting both local corporations and multinational organizations to the segment.

MM Iqbal Hossain, assistant general manager for total quality management at Akij Food and Beverage, said people of most ages enjoy fruit drinks.

"The rule of mandatory licensing will improve the accountability of manufacturers and benefit consumers," he said.

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