FSSAI Restricts Ashwagandha Use: Nutraceutical & Food Cos Face
Analyzing: “FSSAI directs food manufacturers to use only Ashwagandha roots, extracts; not leaves” by et_companies · 21 Apr 2026, 1:45 PM IST (about 2 hours ago)
What happened
The FSSAI has issued a clear directive stating that only Ashwagandha roots and their extracts are permitted for use in food products, explicitly prohibiting the use of Ashwagandha leaves. This aims to standardize the quality and efficacy of Ashwagandha-containing products.
Why it matters
This regulatory clarification is important for the Indian nutraceutical and food processing industries. Companies that were previously using Ashwagandha leaves will now need to adjust their sourcing and manufacturing processes, potentially incurring compliance costs or facing temporary supply chain issues.
Impact on Indian markets
While no specific companies are named, firms in the nutraceutical, Ayurvedic products, and food processing sectors that use Ashwagandha (e.g., DABUR, HIMALAYA, ZYDUSWELL) could be impacted. Companies already adhering to root-only usage might see a competitive advantage, while others may face short-term operational adjustments. The overall impact is likely neutral to slightly negative for non-compliant players.
What traders should watch next
Traders should watch for official statements from affected companies regarding their compliance plans and any potential impact on product availability or pricing. Monitoring the supply chain for Ashwagandha roots and extracts for price fluctuations will also be crucial.
Key Evidence
- •FSSAI directs food businesses to use only Ashwagandha roots and extracts.
- •Use of Ashwagandha leaves in any form is now prohibited.
- •Clarification comes after some manufacturers were found using leaves.
- •Ayush Ministry has issued similar instructions.
- •Risk flag: Supply chain disruptions for Ashwagandha roots
Sources and updates
AI-powered analysis by
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