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FSSAI urged to create pricing framework for ‘Foods for Medicinal Use’
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Monday, 03 August, 2026, 08 : 00 AM [IST]
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Peethaambaran Kunnathoor, Chennai
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In a bid to curb hyper-inflated pricing and sanitize the commercial pipeline of specialized nutritional formulations, Rafi Malik, a Regulatory Affairs Associate based in Jammu and Kashmir, has called upon the Food Safety and Standards Authority of India (FSSAI) to establish a dedicated, transparent pricing framework for ‘Foods for Medicinal Use’ and therapeutic nutrition.
The move aims to bring price rationalisation to a rapidly growing market that bridges regular dietary items and specialized medical nutrition.
According to him, drawing parallels with the pharmaceutical sector's Drug Price Control Order (DPCO) administered by the NPPA, clinical-grade edibles require stringent price oversight. Rafi Malik emphasized that while mainstream pharmaceuticals enjoy structured price ceilings, specialized formulations, including Foods for Special Medical Purpose (FSMP), medical nutrition, and nutraceuticals, continue to operate in an unmonitored retail environment, leading to irrational trade margins that strain end-consumers.
While talking to FnBNews, he stated that the real problem is that these products function as medicines, but are sold as specialized foods. Doctors frequently prescribe nutrient-dense formulations, such as high-potency Vitamin D3 blends, chelated iron preparations, clinical protein isolates, specialized amino acid profiles, functional probiotics, and omega-3 fatty acid concentrates, alongside standard care protocols. Despite relying on relatively low-cost raw ingredients, bioactive concentrates, and standard dietary bases, these products are routinely retailed at premium price points that far outpace their core processing and manufacturing overheads.
He said that this market asymmetry has created a landscape where aggressive trade margins, rather than sensory excellence, scientific innovation, or pure ingredient integrity, dictate market penetration. Without price limits, high profit margins encourage companies to spend heavily on aggressive marketing instead of improving product quality, pushing affordable options out of the market. Consequently, the commercial momentum in the specialized food and beverage segment is increasingly driven by inflated yield expectations rather than consumer accessibility or product purity.
According to Malik, the financial pressure of this regulatory lacuna falls heavily on vulnerable demographic segments requiring sustained clinical nutrition, including pregnant women, paediatric patients, the elderly, and economically fragile households. As medical nutrition becomes an indispensable component of long-term wellness and disease management, paying exorbitant premiums for basic micronutrient fortification and functional ingredients poses a severe challenge to daily household spending and healthcare affordability.
The memorandum states that four government bodies, the FSSAI, NPPA, Health Ministry, and Department of Pharmaceuticals, must work together to reform the sector. He called for a joint regulatory framework to control prices and protect consumers. The proposed guidelines suggest capping retail prices based on the actual cost of raw materials and production. Under this framework, companies would have to disclose their ingredient costs and justify high prices, putting a strict limit on profit margins for essential nutritional products.
Rafi Malik concludes that advocating for a balanced approach that respects industrial viability while protecting public interest proves that robust price regulation can comfortably coexist with product development in the functional food space. Closing this regulatory gap will ensure that specialized therapeutic nutrition remains an affordable, high-quality staple for holistic healing rather than an appetite-souring burden on Indian households.
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