GS1 India, the international standards body, has urged the food processing industries ministry to stipulate the use of barcodes in the draft national excise policy that is in the process of being finalised.

The policy, drafted by a joint working group for proposed adoption by all states and union territories, has been put up by the food processing industries ministry on its website for comment.

GS1 India, formerly EAN India, was set up as a not-for-profit organisation in 1996 under the commerce ministry in a joint industry-government initiative to bring international best practices to India.

"Barcoding enables 100 percent tracking of sales at retail outlets through compulsory barcode scanning," GS1 India CEO Ravi Mathur said in a statement Monday.

On the critical importance of the inclusion of barcodes, Mathur said: "This ensures no unauthorised sale takes place and thus plugs state revenue leakages."

The consumers stand to benefit through visibility of stocks in all popular brands of India-made foreign liquor (IMFL) at retail outlets, thus ensuring wide choice and availability at all times.

The current multiple state excise acts create difficulties in inter-state comparison of duty and fee structures, and consequently decisions about pricing of products. They also affect inter-state commerce and give rise to inter-state smuggling and unhealthy competition among states, Mathur said.

All these ultimately generate revenue at the expense of others and lead to major losses for states and consumers.

Barcoding has been mandated in the past by several state excise departments and resulted in the incorporation of barcodes on 100 percent IMFL supplies using GS1 global identification standards.

The Canteen Stores Department under the defence ministry has mandated the use of barcodes, thus assuring availability of stocks and convenience to defence personnel at canteen stores across the country.

All imported liquor already carries barcodes and is being scanned at duty-free outlets.

Exports also have to use barcodes, using global identification standards on their supplies due to directives from international buyers, Mathur said.