Exposing Halal Economy in India

Unveiling the Halal Economy: Hidden Costs, Lack of Regulation, and the Need for Transparency

Introduction: Understanding Halal

The word halal means "permissible" in Arabic and holds significant importance in Islamic dietary laws. Traditionally, halal has been associated with the preparation of meat. According to Islamic principles, meat is considered halal only if the butcher is Muslim, the animal's blood is fully drained, and the Shahada (an Islamic prayer) is recited before the animal is slaughtered. This practice is meant to ensure that the meat is fit for consumption by Muslims.

However, what began as a religious guideline for food has now expanded far beyond its original context. Today, halal certification is not only applied to meat but also to a wide range of products, including those that are non-edible. This raises the question: Why has the halal tag been extended to products where it was never intended, and who benefits from this expansion?

The Expansion of Halal Certification

Halal Certification was first introduced in India in 1974, it was strictly for meat products. However, by 1993, businesses began to see an opportunity in expanding this certification to other products. Major companies like Reliance, Tata, and Nestle now hold halal certifications, even for products that have nothing to do with food. The reason was simple: halal-certified products are more appealing to Muslim consumers, and the potential market is enormous. By 2030, the global halal market is projected to reach a staggering $6044 billion, and the Muslim population expected to exceed 2.5 billion by 2050.

This trend has turned the halal tag into a powerful marketing strategy, even for non-Muslim businesses. By obtaining halal certification, these companies tap into a growing market segment, boosting their appeal among Muslim consumers both in India and globally. This strategic move allows businesses to expand their customer base, increase sales, and enhance brand loyalty within Muslim communities.

However, while halal certification serves as a lucrative marketing tool, it also comes with hidden costs that are often passed on to consumers. Non-Muslims, who may not be concerned with the halal tag, often fail to realize that they are paying extra for products due to the cost of halal certification. Companies adjust the price of halal-certified products to cover the expenses incurred in obtaining and maintaining certification. This means that, unknowingly, non-Muslim consumers are subsidizing a religious practice they might not even be aware of.

The Role of Certification Bodies: Who Controls the Halal Market?

One of the most troubling aspects of the halal certification process is the lack of government oversight. In India, halal certificates are issued by NGOs, not by any government authority. This creates a private system with little transparency or accountability. One of the most prominent halal certification bodies in India is the Jamiat Ulema-e-Hind, an organization that charges hefty fees for issuing and renewing halal certificates.

Source : https://www.jamiathalaltrust.org/fee-structure.php...

But where do these fees go? There is reason to question how these funds are used, especially considering that organizations like Jamiat Ulema-e-Hind have been involved in defending several criminals. This organisation has used their funds for legal defense of around 700 accused Islamic terrorists in various cases.

Recognizing the issues surrounding unregulated practices in the halal industry, the Uttar Pradesh government took a significant step in 2023 by cracking down on illegal slaughterhouses and unregulated meat exports. This move highlighted the urgent need for government intervention to ensure transparency and compliance with ethical and legal standards. The crackdown serves as a reminder that while the halal economy is thriving, it must be regulated to prevent misuse and exploitation.

Conclusion: The Need for Transparency and Accountability

In India, we see massive outrage over things like Zomato introducing a pure veg uniform or the UP government asking shop owners to display their names during Kanwar yathra. People cry foul, claiming these actions are divisive or unnecessary. But where is this outrage when it comes to a big scam like this?

The expansion of halal certification beyond its original scope of meat products raises serious ethical and economic concerns. What was once a religious guideline has now become a powerful marketing tool, used by companies to boost profits while manipulating religious sentiments. Meanwhile, the lack of government control over the halal certification process leaves consumers in the dark about where their money is going.

India, as the second-largest halal meat exporter to Islamic countries after Brazil, plays a significant role in this global economy. In 2021 alone, India exported halal meat worth $15.4 billion. While this trade undoubtedly boosts our economy, it also underscores the urgent need for proper regulation and oversight.

It's time to question the motives behind the halal certification industry and demand greater transparency and accountability. Consumers, both Muslim and non-Muslim, deserve to know the true cost of the products they buy and the practices they are unknowingly supporting. The halal certification system, as it stands today in countries like India, is not just about religious adherence—it's about profit, power, and control. Proper regulation is necessary to ensure that this growing economy operates fairly and transparently, benefiting all stakeholders without compromising ethical standards.

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