Karnataka's Kannada labelling mandate stirs concerns among export manufacturers

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Karnataka's Kannada labelling mandate stirs concerns among export manufacturers

Karnataka's Kannada labelling mandate stirs concerns among export manufacturers

Industry News
Nov 05,24

An anonymous FMCG executive told the source that industry standards usually support a uniform packaging design across markets.

Karnataka's Kannada labelling mandate stirs concerns among export manufacturers

Karnataka Chief Minister Siddaramaiah’s announcement of a mandatory Kannada labelling rule for products manufactured in the state has sparked concerns among manufacturers, particularly those in export-driven sectors like pharmaceuticals and auto parts. The new regulation could pose challenges for businesses that operate across both domestic and international markets.

According to industry experts, the mandate might complicate operations. An anonymous FMCG executive told the source that industry standards usually support a uniform packaging design across markets. Adding Kannada labels, he argued, could raise costs unnecessarily.

MG Rajagopal, President, Karnataka Small Scale Industries Association (Kassia), noted that while local businesses might adapt, companies catering to broader markets may struggle. He recommended encouraging Kannada use on packaging rather than enforcing it, as products sold outside Karnataka wouldn’t benefit from Kannada labelling.

Deepak Srinath, Founder, Phantom Hands, warned that implementing the mandate without sufficient planning could disrupt supply chains and increase costs for companies operating in both export and domestic markets.

Meanwhile, others are more receptive to the change. Sajjan Raj Mehta, Former President, Karnataka Hosiery and Garment Association, suggested engaging with stakeholders and providing time for companies to adjust. Karnataka Soaps & Detergents Ltd, for instance, already adapts packaging for different regions, incorporating local languages alongside English, which has worked well for their national and international sales, according to Prashanth PKM, Managing Director.

BC Prabhakar, President, Karnataka Employers' Association, added that dual-language labels could enhance local pride. Chief Minister Siddaramaiah emphasised in his Rajyotsava Day speech that Kannada representation on locally made products is vital, signalling future regulations aimed at promoting the state language on products and business signage.

(The Economic Times & English Jagran)