Nutraceuticals, which at present falls neither under food nor drug category for the licensing purposes, are likely to put under the purview of Prevention of Food Adulteration Act of India for manufacturing and marketing clearance. The new proposal is under way as the Dietary Supplement Bill that was proposed early 2002, is still not placed in the Parliament for discussion as regulatory modalities are yet to reach a consensus between various ministries including Health, Food & Agriculture.

Nutraceuticals and functional foods are food components that provide demonstrated physiological benefits or reduce the risk of chronic disease, above and beyond their basic nutritional functions. A functional food is similar to a conventional food, while a nutraceutical is isolated from a food and sold in dosage form. However, since the products are likely to be cleared by the Food regulatory departments in the state level, putting a functional claim on the label is still a matter of debate at the regulatory level.

According to Dr V Prakash, director, Central Food Technological Research Institute (CFTRI) since nutraceuticals has a very large potential in the domestic as well as export market and the country has an edge over the agro and herbal products, the industry including pharmaceuticals and food processing and agro-based sectors are increasing coming into this area. While the present domestic market is estimated around Rs 470 crore, it is projected to grow by Rs 1,600 crore by 2010.

In recent years, the agri-food sector and consumers have begun to look at food not only for basic nutrition, but for health benefits. The market for nutraceuticals and functional foods (which is large, global and growing), is being driven by a growing consumer understanding of diet/disease links, aging populations, rising health care costs, and advances in food technology and nutrition. Governments, the agri-food sector and the research community are enthusiastic about the potential for nutraceuticals and functional foods to improve citizens' health, help growers diversify, and contribute to increased sales of high-value products to niche markets.

Cholesterol reduction, cardiovascular disease and osteoporosis are the most attractive targets for nutraceuticals, followed by child development, high blood pressure, diabetes, GI disorders, menopause and lactose intolerance. According to informed sources at the ministry of Agriculture, the government is all set to encourage the research projects focused in areas where India has an advantage in the world marketplace, and should have a sustainable impact on farm receipts through diversification of crop options, introduction of new crops with higher returns to farmers, or creation of opportunities to participate in processing beyond the farm, generate business activity beyond farming and have a measurable impact on the health and quality of life of people.