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Karnataka News: Karnataka Chief Minister Siddaramaiah’s recent announcement regarding mandatory Kannada labelling on locally produced goods has raised concerns among various manufacturers. This new regulation could pose significant challenges, particularly for sectors such as pharmaceuticals and auto parts that engage in both domestic and export markets.

Trade experts warn that the implementation of this requirement could complicate operations for many businesses. The Economic Times report quoted one FMCG company executive, who wished to remain anonymous, expressed that such decisions should be left to the industry. He argued that manufacturers typically use a uniform packaging design for their products across the country and adding a new label in Kannada would lead to increased costs.

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MG Rajagopal, president of the Karnataka Small Scale Industries Association (Kassia), noted that while local businesses could adapt to the regulation, those with a broader market may struggle. He explained that having Kannada labels on products intended for consumers outside Karnataka might not be effective since many potential customers would not understand the language. Instead of making it compulsory, he suggested that the government encourage the use of Kannada on packaging.

Deepak Srinath, founder of the handcrafted furniture brand Phantom Hands, also weighed in on the issue. He cautioned that the government should carefully consider the implications before hastily implementing such regulations. Many manufacturers do not know where their products will be shipped and if the law is enforced, it could disrupt their supply chains and increase costs, especially for businesses that operate in both export and domestic markets.

However, some industry figures do not see the proposed changes as problematic. The ET report quoted Sajjan Raj Mehta, a former president of the Karnataka Hosiery and Garment Association, pointing out that existing policies already support manufacturers and retailers in adopting local languages. He recommended that the government engage with stakeholders and provide adequate time for companies to adjust to the new requirements.

Karnataka Soaps & Detergents Ltd, known for its Mysore Sandal soaps, is already implementing a similar strategy, according to managing director Prashanth PKM. He explained that the company uses different packaging for various states and incorporates local languages alongside English, which has been effective for their pan-Indian and international sales.

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BC Prabhakar, president of the Karnataka Employers' Association, added that displaying product names in both Kannada and English could enhance pride among manufacturers about their local origins.

In his Rajyotsava Day speech, Chief Minister Siddaramaiah stated the importance of using Kannada on products made in the state. Following this, he announced plans for new regulations aimed at promoting the local language, in line with a recent law requiring businesses to display names in Kannada prominently.