Strengthening the backbone of Indonesia’s fisheries: A call to action

We used to be proud to be fishers, and life was not hard. My child will definitely not follow in his father’s footsteps; he is better off working on land than at sea.

These somber words from Pak Suwardi, a small-scale fisher in Lamongan, East Java, ironically one of the country’s top fish producing regions, reflect the struggles facing small-scale fishers across Indonesia. Many small-scale fishers and aquaculture farmers throughout the archipelago are grappling with increasing economic, social, and environmental challenges that threaten their livelihoods, mirroring struggles faced by their counterparts in many parts of the world. As highlighted by the joint research on the Blue Food Assessment (BFA) conducted by MSC and Ministry of National Development Planning/National Development Planning Agency (Bappenas), these pressing issues demand urgent attention, particularly as Indonesia is finalizing the 2025-2029 National Medium-Term Development Plan (RPJMN).

Small-scale fisheries and aquaculture (SSFA) make up 85% of Indonesia’s fisheries sector and are essential to the value chain. They support food security, provide livelihoods for a significant portion of the population, and contribute to the sustainable management of aquatic resources. The Indonesia Blue Economy Roadmap 2023-2045 aims to elevate the contribution of marine and aquatic sectors to 15% of GDP and create jobs for 12% of the workforce by 2045. 

However, small-scale fisheries and aquaculture (SSFA) in Indonesia face several challenges. Access to finance remains a significant barrier for SSFA, limiting their ability to upgrade equipment or invest in sustainable practices. Many prefer informal loans over institutional financing, which deepens their reliance on middlemen, who often act as key financial facilitators. During off-seasons, SSFA are forced to diversify their income, but limited skills and capital often confine them to low-paying jobs, such as basic fish processing or manual labor.

Resource and operational constraints have left SSFA’s potential largely untapped. Despite their significant numbers, small-scale fishers contribute only 20% of national fish catch. They face critical barriers in accessing affordable fuel for their boats and often rely on outdated equipment, limiting their access to more productive fishing grounds. According to our BFA findings, inefficiencies in fishing methods and inadequate storage exacerbate these issues, with up to 10 kg of fish per harvest lost to spoilage, especially on longer trips.

The aquaculture sector faces similar challenges, achieving only 30% of its potential production capacity. Farmers often lack access to affordable, high-quality seeds and feed, which are unreliable due to seasonal and weather fluctuations, price instability, and limited availability. Quality supplies are often prioritized for export. Access to subsidized fertilizers is also limited, as land-based agriculture takes precedence. Additionally, reliance on outdated equipment like fuel-powered aerators significantly raises operational costs. Alternatives such as electric aerators, have been found in our BFA research to reduce costs by as much as 60%.

The predominance of men in SSFA, coupled with an aging workforce and a lack of younger workers, threatens the future of the industry. Many young people from fishing families seek better opportunities elsewhere, leaving small-scale fishing at risk. Although women make up 42% of the workforce in Indonesia’s fisheries sector, their contributions often go unrecognized.

Traditional gender roles limit their involvement in fishing, and they are mainly engaged in pre- and post-harvest tasks. Societal norms and limited recognition as fishers prevent women from accessing resources and support, such as obtaining the KUSUKA card, the national fisher’s identity, limiting their potential to contribute more to the sector.

Climate change exacerbates Indonesia’s fisheries and aquaculture challenges. Sea surface temperatures (SST) have risen at an average rate of 0.19°C per decade over 33 years (Iskandar et al., 2020), outpacing global trends and severely disrupting ecosystems and productivity. Small-Scale Fisheries and Aquaculture (SSFA) are especially at risk due to inadequate access to advanced technology, financial support, and infrastructure.

The Notre Dame Global Adaptation Initiative (ND-GAIN) Country Index 2022 ranks Indonesia globally as the 97th most vulnerable and 99th most ready for climate change, underscoring its critical need for improved resilience and adaptive strategies to safeguard livelihoods and ecosystems.

Given this context, Indonesia must embrace a more robust approach to support SSFA communities. The government has already positioned the blue economy as a future growth engine and a pathway to sustainable fisheries in the 2025-2045 National Long-term Development Plan (RPJPN). This strategy promotes sustainable practices in marine and aquaculture, focusing on high-value products and innovation.

By boosting productivity and empowering communities, Indonesia aims to build a resilient fisheries sector that supports livelihoods and protects ecosystems, promising lasting benefits for the economy and biodiversity. Based on insights from our study with Bappenas, we offer five key policy recommendations to support and sustain Indonesia’s SSFA. These recommendations address pressing needs identified through our research and consultation with SSFA communities and stakeholders.

To lay a strong foundation, first, Indonesia must promote economic empowerment and improve market access for small-scale fishers. Drawing on lessons from the Coastal Community Empowerment Program (PMP-PPK), it is recommended to design comprehensive, integrated livelihoods diversification programs. By partnering with relevant government agencies, Indonesia can provide SSFA communities with additional sources of income, reducing their reliance on unpredictable fishing yields.

Second, strengthen resource access and operational efficiency. Expanding subsidy programs for high-quality inputs, such as fish feed, seeds, and fertilizers, will reduce operational costs for small-scale aquaculture farmers, especially those most vulnerable. Supporting local production and bulk purchasing for fishing cooperatives can further reduce dependency on costly intermediaries, enhancing the economic viability of SSFA. Global examples, such as India’s Pradhan Mantri Matsya Sampada Yojana (PMMSY) under India’s Blue Revolution scheme promotes sustainable aquaculture by providing subsidies and encouraging cooperatives to lower input costs for small-scale fish farmers.

Third, foster social inclusion and build capacity within SSFA communities. Increasing the reach of KUSUKA cards by enhancing public outreach and simplifying the registration process would extend critical social protections to more fishers, ensuring that vulnerable communities can access the support they need. Beyond financial access, this also means providing training and resources that empower women and underrepresented groups within the sector, unlocking the full potential of SSFA to drive local economic growth.

Lastly, ensure the continuity and sustainability of SSFA by developing and implementing a strategic succession plan. This initiative should include capacity building, youth-specific financial services, and leverage digitalization to engage the next generation in the sector. Embracing digital tools—from digital marketing and sales to automation in aquaculture to advance cultivation, and mobile financial services, can make the sector more accessible and appealing to young people, fostering a sustainable pipeline of skilled workers and leaders well into the future.

Addressing the challenges faced by small-scale fisheries and aquaculture is not just about economic growth, it is about safeguarding the food security, livelihoods, and cultural heritage of millions across Indonesia. By investing in these targeted actions, we can secure the future of Indonesia’s fisheries and aquaculture, ensuring that small-scale fishers like Pak Suwardi can envision a better future for themselves and their next generations.

The next chapter in Kenya’s digital payment revolution

Kenya’s success story is often told through the lens of M-PESA, the mobile money innovation that emerged in 2007 and fundamentally reshaped the country’s payment landscape. Its rapid growth stemmed from its agility, adaptive infrastructure, and regulatory initiatives. Thanks to M-PESA, between 2024 and 2029, Kenya’s total digital payment transaction value is projected to grow at a compound annual growth rate (CAGR) of around 14.1% to 26.16%, reaching approximately USD 24 billion by 2029.

Despite this progress, persistent challenges, such as high transaction costs, limited digital literacy, network reliability issues, and a continued preference for cash, hinder adoption. This is particularly evident in rural areas, where fragmented agent networks and duplicative service models limit access to affordable and reliable digital financial services (DFS).

The Central Bank of Kenya (CBK) recognized M-PESA’s pivotal role in the economy and introduced key reforms to promote a more inclusive, secure, and efficient digital payments ecosystem—one that could reshape the country’s economic future.

The CBK has positioned itself as both a regulator and a catalyst for transformative growth. Central to this effort is the National Payments Strategy (NPS) 2022-2025, a blueprint designed to propel Kenya into a future where digital payments are secure, fast, and universally accessible.

The promotion of interoperability across payment platforms has been a core pillar of the NPS. The mandated interoperability of mobile money platforms was a significant milestone in this effort. It enabled seamless and instant fund transfers between M-PESA, Airtel Money, and T-kash. Another leap forward was the introduction of merchant till number interoperability, which allowed payments to any business regardless of the mobile network operator (MNO). This simplified payment acceptance for merchants, especially small and medium enterprises (SMEs), and expanded their customer base. Previously, users incurred high costs by withdrawing funds to transact with users on different networks. Now, direct transactions lessen the need for cash-outs and make digital payments more accessible.

The financial industry in Kenya initiated a strategic initiative to design and implement a shared and interoperable agent network to deepen interoperability and expand financial access. MicroSave Consulting (MSC) led the implementation of this initiative in collaboration with Financial Sector Deepening Kenya (FSD-K). The CBK played a pivotal role in anchoring the project within the NPS and shaping regulatory expectations.

The CBK has also introduced and enforced key standards to enhance efficiency and security. The launch of the KE-QR Code Standard in 2023 introduced a single, interoperable QR code that allows users to transact with any merchant, regardless of PSP or MNOs. The CBK has also been developing a comprehensive framework for consumer protection within the National Payments System to protect consumers. This will establish minimum standards for PSPs, promote fair practices, improve transparency, and enable effective complaint resolution.

Kenya’s adoption of the ISO 20022 Global Messaging Standard also highlights its commitment to international best practices. This standard enhances data exchange during transactions, boosts efficiency, and facilitates more seamless cross-border payments. The CBK has been guiding this transition through policy issuance, stakeholder coordination, and upgrades to systems, such as the real-time gross settlement (RTGS) platform. These efforts enhance fraud detection, strengthen oversight, and reinforce Kenya’s position as a regional financial hub.

Further efforts involve plans to integrate PesaLink with mobile money platforms, such as M-PESA, which will connect traditional banking with mobile money. This push for interoperability will significantly speed up digital payment adoption throughout Kenya.

Alongside these reforms, the CBK is also at the forefront of using supervisory technology (SupTech) to strengthen its regulatory oversight and facilitate innovation. It can now monitor PSPs and banks in real time through digital dashboards, AI-driven anomaly detection, and data analytics platforms. This has drastically improved responsiveness to systemic risks. For example, its risk-based supervision model, underpinned by SupTech tools, allows for dynamic compliance assessments and more efficient fraud detection across mobile money operators.

Lastly, the CBK has been piloting regulatory sandboxes in collaboration with FinTechs. It uses SupTech to monitor innovation and safeguard consumer interests. These systems enhance agility in policymaking, which allows regulators to adapt faster to emerging technologies and payment models. The CBK seeks to proactively detect market abuse and enforce consumer protection in a data-driven, scalable manner through the integration of SupTech into its oversight mechanisms. This bolsters public confidence and ensures inclusivity, especially for vulnerable segments that seek to enter the digital economy for the first time.

As the CBK strengthens regulatory visibility through SupTech, it is simultaneously investing in the core infrastructure that will anchor a seamless and interoperable digital economy. It is in the process of advancing Kenya’s payment infrastructure with the Fast Payment System (FPS), set to launch in 2025. This system will support real-time, 24/7 transactions among individuals, businesses, and the government. Kenya is also integrated with the Pan-African Payment and Settlement System (PAPSS). It has become the 10th African central bank on the platform. This integration seeks to facilitate cross-border payments in local currency, reduce reliance on foreign intermediaries, and support the African Continental Free Trade Area (AfCFTA).

Together, FPS and PAPSS exemplify the CBK’s strategy to create an inclusive, interoperable, and globally competitive payments landscape, guided by global standards, such as ISO 20022, and inspired by models, such as India’s UPI and Brazil’s PIX.

Yet despite significant progress, several barriers continue to inhibit the full realization of an inclusive digital payments ecosystem. These challenges can slow down adoption and deepen existing access inequalities, especially in rural and underserved regions. Key gaps include:

  • Fragmented agent networks: Overlapping and siloed agent models create inefficiencies, particularly in rural areas, where agents often serve a limited number of providers. This leads to poor service coverage and reliability.
  • High transaction costs: For low-income users, the cost of using digital payment services remains prohibitive, especially when switching across platforms or accessing cash-out services.
  • Inconsistent consumer protection: Resolution mechanisms are often inadequate or poorly enforced across providers, which undermines trust and discourages usage, particularly among vulnerable users.
  • Lack of a unified payment switch: The absence of a designated National Payments Switch hampers full interoperability across mobile money platforms, banks, and FinTechs, which leads to fragmented user experiences and operational redundancies.

So, what should the CBK do? We recommend the CBK to prioritize the following strategic actions to sustain progress and address persistent gaps:

  • Accelerate shared agent network rollout: The CBK should expand the shared agent network to reduce duplication and improve access in rural areas. A unified model will enable agents to serve multiple providers efficiently and lower transaction costs.
  • Designate a National Payments Switch: The CBK should designate an existing payments switch as the National Payments Switch. It should be mandated to facilitate all domestic digital payments, similar to India’s UPI model. Clear targets to reduce cross-border costs would also benefit trade and remittances.
  • Enforce consumer protection and promote digital literacy: The CBK should finalize the National Payments Consumer Protection Framework and launch targeted digital literacy programs to build trust and ensure safe usage.
  • Introduce a secure open finance framework: The CBK should develop a consent-based open finance policy, such as the UK’s OBIE, to enable data sharing, encourage innovation, and enhance user control.

If sustained and expanded, Kenya’s regulatory and infrastructure efforts could redefine financial access for millions and offer a roadmap for digital economies across the continent. With the right policy frameworks and collaborative innovation, a truly inclusive and resilient digital payments future is within reach, both for Kenya and for Africa at large.

From UPI to ULI (Unified lending interface): India’s next digital infrastructure imperative

Rajesh, a Pune-based manufacturer, watched helplessly as his opportunity to supply critical parts for an order slipped away. Despite his best efforts, he couldn’t get a loan of USD 23,000 (INR 20 lacs) to upgrade his equipment.

With purchase orders in hand, Rajesh approached his bank with confidence. What followed was a labyrinthine process that is familiar to India’s MSME sector. First came the demand for documentation, business registration certificates, three years of financial statements, tax returns, and property documents. Days turned into weeks as bank officials requested more paperwork, such as GST returns, bank statements, project reports, vendor agreements, and compliance certificates, sometimes contradicting earlier requirements. Follow-ups yielded vague responses about “processing timelines.” Meanwhile, his client lost patience and awarded the contract to a competitor with ready capacity.

This scenario repeats daily across India’s MSME landscape, where a significant credit gap persists.

India’s digital revolution, anchored by the JAM Trinity, transformed financial inclusion. The Pradhan Mantri Jan Dhan Yojana added 550 million accounts by April’2025, while UPI processed INR 23.94 trillion across 17.8 billion transactions, connecting 660 banks into its network and revolutionizing digital payments acceptance for small businesses. Despite these achievements, MSMEs face an INR 80 trillion credit gap, with nearly 50% MSME credit demand going unmet. Among 64 million MSMEs, 14% have access to formal credit.

This credit gap stems from structural barriers. Many MSMEs lack comprehensive financial records and don’t have collateral to support the scale of financing they require. The conventional lending process remains characterized by paperwork and waiting periods, particularly for new-to-credit (NTC) borrowers. In contrast, urban enterprises and large corporations secure credit within days through streamlined digital processes and relationship banking, highlighting the disparity in financial access. This gap threatens India’s ambitious economic goals to become the world’s third-largest economy by FY2028.

The primary obstacle lies in fragmented data architecture. Financial institutions, particularly smaller lenders, operate on legacy systems that cannot easily integrate with newer platforms. This creates isolated data pockets, preventing a holistic view of potential borrowers and causing unintentional exclusion. Regional rural banks and cooperatives, the first point of contact for rural borrowers, struggle most with these technological limitations.

Compounding this challenge is the scattered nature of data essential to underwriting loans. Land records remain with state governments, GST data with tax authorities, and banking information within individual institutions. Each data source requires separate integration efforts, creating prohibitive costs for smaller lenders. The consequences are tangible. Loan processing that should take days stretches into weeks as lenders manually collect and verify documents. Small businesses have large opportunity costs when capital isn’t available at critical junctures, leading to the exclusion of “thin-file” and “no-file” borrowers.

Unlike bilateral API banking arrangements or the Account Aggregator frameworks, ULI functions as a centralized technology platform that connects lenders with multiple data sources, whether financial or non-financial, through standardized APIs. This plug-and-play architecture eliminates the need for individual integrations that smaller lenders cannot afford. By consolidating financial data (GST returns, income tax filings) and non-financial information (land records, utility payments) into a unified framework, ULI transforms fragmented data repositories into actionable lending insights. For users, ULI simplifies the borrowing experience. Think of it as the digital equivalent of a marketplace where, instead of comparing different brands of products, borrowers can compare credit offers from multiple financial institutions on a single platform. Users provide basic details and financing requirements, and ULI instantly displays tailored credit options, with details on approved amounts, interest rates, and tenure. Borrowers can select the most suitable offer based on their preferences and receive funds directly into their accounts. This eliminates multiple bank visits, downloading numerous apps, or managing stacks of paperwork, transforming a weeks-long process into a streamlined digital experience.

Its key strength lies in the ability to automate documentation processes. Through digital verification channels including eKYC, and eSign capabilities, ULI can reduce loan processing times from weeks to hours. This efficiency addresses the opportunity costs that borrowers face when capital isn’t available at critical business junctures. ULI enables alternative credit assessment by incorporating diverse data points beyond traditional banking records.

The platform’s interoperability with other DPIs, like the Open Credit Enablement Network and Open Network for Digital Commerce, creates a more robust ecosystem for credit delivery. Smaller lending institutions gain access to sophisticated credit assessment tools previously available only to larger banks. Borrowers receive faster credit decisions based on more comprehensive data. As ULI evolves, its potential to close India’s credit gap will be essential to achieving the country’s economic growth targets and ensuring inclusive financial development.

India’s digital highways are built. Now, we must connect them so that no potential borrower is excluded. By bridging our data silos and streamlining credit access, we can unlock the true potential of India’s entrepreneurial spirit and ensure that our digital revolution truly serves all.

The oped was first published on Hindustan Times on 4th July, 2025

A long road to financial inclusion for low-income people with disabilities in Indonesia

Ade, a 23-year-old woman with visual impairments from Indonesia, has been struggling to replace her expired debit card at a bank branch. The bank has no Braille documents and lacks procedures to support independent access for people with disabilities (PwDs). The bank staff asks her to come back to the bank with someone she trusts, which she finds difficult. Instead of adequately accommodating or addressing the accessibility gap, the banks fail to include PwDs like her in the financial system.

In this blog, we explore how the intersection of disability and poverty creates layered barriers to financial inclusion. It draws on field insights from a disability inclusion study conducted by MicroSave Consulting (MSC), in collaboration with Opportunity International Australia (OIA). The study was a joint initiative funded by the Department of Foreign Affairs and Trade (DFAT) and the Australian NGO Cooperation Program (ANCP).

How do non-inclusive services drive dependency?

Non-inclusive services present a significant barrier for PwDs who attempt to access financial products and services. Most financial institutions have failed to meet their needs around communication, physical, or digital access. As a result, basic activities, such as opening an account or replacing a card, require aid from family or friends. The story of 23-year-old Ade tells the challenges PwDs face in financial inclusion. Eventually, she had to reapply for an expired debit card and now avoids going to the bank altogether.

Often, PwDs are afterthoughts in Indonesia’s financial inclusion system, even when they make up 1.4 % of Indonesia’s population, or around 4 million people. Whether it is access to simple financial services, regular usage, or the quality of financial services, PwDs face persistent exclusion. Only 24.3% of PwDs in Indonesia have a bank account, compared to 47% of those without disabilities. Usage of digital financial services is even lower for PwDs, as only 1.1% of them have used the Internet to access financial services.

Such exclusion has a direct correlation to income disparities, as 55% of PwDs belong to low-income backgrounds. In Indonesia, they earn an average of just IDR 1.3 million (~USD 80.25) per month, and 69% work in the informal sector. The vulnerabilities PwDs face increase during times of crisis. As an example, during the COVID-19 pandemic, about 41% were classified as vulnerable to falling deeper into poverty. A 30-80% income drop was identified compared to their pre-pandemic incomes, below IDR 1 million (~USD 61.73).

How are digital finance services not yet universally inclusive?

While digital financial services may have reduced Ade’s visits to physical bank branches, such services are not inclusively designed. She faces other barriers when she tries to complete the electronic know your customer (e-KYC) process. The live detection feature, which requires users to move their head in specific directions or blink on command, was difficult for her due to her visual impairment. She had to repeat the process multiple times before she completed it.

People with intellectual disabilities or low literacy levels face even greater barriers when they use digital financial services. Complex steps like e-KYC can be confusing without simple instructions, clear language, or intuitive navigation. Features, such as voice guides, screen readers, or alt text for buttons, can make these services more accessible for people with disabilities.

Limited education and communication create dependency

Access to financial services is even more difficult for people with disabilities from low-income backgrounds, many of whom have had limited educational opportunities. They are often never enrolled in special education programs, where they could have learned sign language or Braille. This limits how well they can interact with formal systems or navigate them.

The challenges are even more acute for individuals who developed disabilities later in life due to aging. While age-related impairments are common across income levels, older adults from low-income households face greater barriers. With limited education, they struggle to adapt to new conditions or learn assistive tools and systems that would help them access financial services. As a result, many low-income PwDs, especially older adults, often must rely on others when using financial services.

In Bogor Regency, Macih, a 64-year-old homemaker with visual impairments, participates in a group lending arrangement provided by a formal microfinance institution (MFIs). Based on the Grameen model, small groups of women meet weekly at a member’s home. During these meetings, a field officer facilitates savings deposits, withdrawals, loan applications, and repayments. Macih relies on her husband to manage the paperwork involved in financial transactions. He reads the documents to her and helps her sign them, as she had completed only elementary school and never had the opportunity to learn Braille.

Another participant in the same lending group arrangement is 66-year-old Iroh, an agricultural worker who relies on others for support. Her hearing impairment developed due to old age, and she never learned Bisindo, the Indonesian sign language. She sees little point in doing so now, as no one around her uses it. She struggles to learn at her age and relies on a fellow group member to communicate with the field officer.

Assistive tools fail to be prioritized, especially for women

Access to assistive tools, such as hearing aids, walking sticks, or wheelchairs, is also a challenge for many low-income PwDs. These tools are often too expensive, and when daily survival is at stake, they are not prioritized. This especially applies to women, who put family needs above their own.

Hana, a 56-year-old nasi uduk seller, has had difficulty walking since childhood. In recent years, she has only received a prosthetic leg through a government aid program. When asked if she would have taken a loan to buy it, she shared that she preferred to support her small business and daily needs. However, day-to-day life stays difficult without such tools, which include seemingly simple tasks, such as a visit to an ATM.

Low earnings keep formal finance out of reach

Around 69% of PwDs are engaged in the informal sector and earn just enough to meet daily needs. As a result, financial products that may seem affordable to non-disabled people can still be out of reach for low-income people with disabilities. For instance, opening or maintaining a savings account is difficult, as it typically requires a minimum of IDR 20,000 to open and IDR 10,000 (~ USD 1.23 to ~ USD 0.61) to deposit. For these people, formal financial services can be entirely inaccessible when combined with transportation costs, physical effort, and the fear of being turned away or needing assistance.

The way forward

The layered challenges that PwDs face when they seek access to financial services make the design of inclusive financial products more complex. Inclusive solutions must be genuinely expanded, not merely provided as a formality. They must address the real barriers that PwDs, especially those from low-income backgrounds, face every day.

Assistive technologies should be easy to use and accessible to low-income users with disabilities. They should be included early in the design of products and services so their real needs align with what is offered. In the long term, efforts should expand affordable access to tools and training that help people with disabilities use financial services independently.

At its core, financial inclusion is to ensure everyone can access and use financial products and services. PwDs, especially those from low-income communities, have been left out of the financial inclusion landscape for too long. To fully achieve true financial inclusion, the layered challenges they face must be recognized and responded to. Only then can financial products and services become truly inclusive for all.

 

This article was first published on Inside Indonesia platform on August 1st, 2025

Accelerating Indonesia’s Blue Food Economy: Qualitative Assessment

This report dives deep into the overlooked potential and pressing challenges of Indonesia’s blue food economy. With the world’s second-longest coastline and millions relying on fish for food and income, blue food is not just an economic opportunity, but a lifeline.

By spotlighting small-scale fisheries, aquaculture, and the often invisible role of women, the report unpacks the structural gaps holding the sector back from limited market access to climate vulnerability and food loss. It lays out six critical pillars nutrition, environment, justice, productivity, value creation, and waste to understand what’s broken and how to fix it.

Through community voices, field research, and policy insights, the report calls for urgent action: smarter investments, inclusive policies, and stronger support for local actors. The goal? A thriving blue food economy that feeds, empowers, and sustains fairly and sustainably.

Safer street food in India: Strengthening nutrition security through multi-stakeholder action

Introduction and background

“Street foods have traditionally been an integral part of Indian society… They represent the rich local traditional cuisines,” notes a government release​. From the chaat stalls of Delhi to the idli vendors of Chennai, street food plays an integral role in India’s urban food environment. It provides convenient, low-cost meals to millions of people and serves as a primary source of income for a significant share of the country’s informal workforce—estimated at around 10 million street vendors and about INR 8000 crore (USD 960 million) daily. The affordability and accessibility of street food make it a daily reliance for working-class consumers, especially those in urban areas with limited time, income, or kitchen access.

Street vendors also have the potential to support nutrition security, particularly when fresh produce or traditional recipes are used. Seasonal offerings—such as sprouted moong salads, roasted peanuts, or fruit carts—can provide essential micronutrients. This potential is often undermined when vendors prioritise cost-cutting over quality, using substandard or adulterated ingredients.

The sector is also associated with environmental and climate-related challenges. The widespread use of single-use plastics, unsafe food packaging, and poor waste disposal practices contributes to urban pollution and environmental degradation.

Another challenge is that while the government has made significant strides in recognizing street food vendors the sector is still largely informal, under-regulated, and often disconnected from food business policy ecosystem. Until recently, most policy conversations for street food have centered around hygiene and food safety in the context of foodborne illness, an equally important challenge emerging is: the poor nutritional quality of most of India’s street food. Vendors often use substandard or adulterated ingredients, reused oils, and nutrient-poor recipes. These practices expose consumers to long-term health risks, including diet-related non-communicable diseases, and undermine efforts toward ensuring nutrition security in urban India.

The evolving challenge: from food safety to nutrition security

Nutrition security goes beyond ensuring food is safe from contamination—it requires that food is also nutrient-dense and dietarily adequate. While affordable and filling, many street foods lack the required nutrition. A large proportion of street foods fall into the high-fat, sugar, and salt (HFSS) category made with refined flour, reused cooking oils, and added sugars are calorie-dense but offer limited amounts of essential nutrients such as high-quality protein, dietary fibre, vitamins, and minerals.

This pattern of consumption contributes to the dual burden of malnutrition—with undernutrition persisting in the form of micronutrient deficiencies (“hidden hunger”), alongside a growing incidence of non-communicable diseases such as obesity, type 2 diabetes, and hypertension. These risks are particularly pronounced in urban areas where dietary diversity is constrained by affordability and access.

While food safety efforts have made headway in addressing hygiene and microbial contamination, the nutritional risks associated with low-quality ingredients and poor formulations remain inadequately addressed. The continued reliance on adulterated inputs, excessive frying, and nutritionally imbalanced preparations compromises the safety and the dietary value of meals widely consumed in India’s urban food environments. Addressing these issues is essential to making street food a reliable part of India’s nutrition security landscape.

Vendor realities: barriers to safer, nutritious street food

While the discussed issues underscore the persistent risks associated with street food, they also reflect the economic and operational realities faced by vendors. To sustain their livelihoods, many vendors prioritise low-cost preparation and mass appeal, often at the expense of food quality and nutrition.

Improving food safety and nutrition in this sector requires more than regulation—it demands a grounded understanding of vendors’ day-to-day constraints. Most operate with minimal infrastructure, limited access to clean water, refrigeration, or waste management, and little formal training in food safety or nutrition. Financial limitations often lead to the use of low-quality or adulterated ingredients, reused oils, plastic packaging, and unsafe storage practices. These challenges are further compounded by long working hours, exposure to heat stress, and growing climate-related vulnerabilities, all of which affect both vendor well-being and the consistency of food safety practices.

Government efforts and public initiatives

The Government of India has taken important steps to address both demand- and supply-side challenges in the informal food sector, with a particular focus on food safety. Through the Food Safety and Standards Authority of India (FSSAI), several key initiatives over the past five years have aimed to formalise, regulate, and build the capacities of street vendors—with an emphasis on improving hygiene and quality standards and promoting safer food handling practices across urban settings.

1) Clean Street Food Hubs

FSSAI’s Clean Street Food Hub initiative aims to certify clusters of 50 or more vendors based on hygiene, sanitation, infrastructure, and food handling practices. The initiative is a collaboration of the Ministry of Health and, the Ministry of Housing and Urban affairs, underscoring the commitment of the government to recognize the value of safe street foods. Iconic street food markets in some cities such as Kankariya in Ahmedabad, Chappan Dukaan in Indore, Girgaon Chowpatty in Mumbai, etc. have already received this certification after undergoing structured improvements, including infrastructure upgrades, vendor training, and third-party audits. These hubs demonstrate that street food can be both affordable and safe, provided adequate support and oversight are in place.

2) Eat Right India and FoSTaC

The broader Eat Right India campaign promotes safe, healthy, and sustainable diets and includes street food vendors as a key constituency. Through the Food Safety Training and Certification (FoSTaC) programme, vendors are being trained in safe food handling, personal hygiene, and basic nutrition. FSSAI has worked with municipal corporations in many cities to make training and certification mandatory for vendor registration, using incentives such as visibility, branding, and inclusion in government-supported vendor lists.

3) Regulating oil use and promoting safe disposal

Recognizing the risks of reused cooking oil, FSSAI introduced the Repurpose Used Cooking Oil (RUCO) framework, which sets limits for total polar compounds (TPC) in frying oils and promotes the collection of used oil for biodiesel conversion. Total Polar Compounds are formed on repeated frying. The toxicity of these compounds is associated with several diseases such as hypertension, atherosclerosis, Alzheimer’s disease, liver diseases. While initially targeted at larger food businesses, the initiative has encouraged public dialogue on safe oil use and has been piloted in some municipal vendor clusters through awareness drives and mobile testing labs.

4) Credit, registration, and infrastructure through convergence

Government assistance schemes and initiatives such as PM SVANidhi, the National Urban Livelihoods Mission, and local vending regulations under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 provide a framework for vendor formalisation and support. Many states and cities now require vendors to obtain FSSAI registration and undergo basic training. Municipalities have also begun creating model food streets, improving sanitation, seating, and access to clean water.

The role of the private sector

While public initiatives have laid the foundation, there is a significant opportunity for the private sector—particularly food manufacturers, ingredient suppliers, and digital platforms—to fill existing gaps and co-create solutions.

1. Improving access to quality ingredients:

Private sector actors—particularly food manufacturers, distributors, and aggregators—can play a critical role in improving the quality of inputs used by street vendors. This includes:

  • Stable, low-trans-fat oils packaged in smaller quantities for daily use
  • Verified dairy products, such as milk and paneer, sourced from regulated suppliers
  • Fortified ingredients, like iodised salt, iron-rich flours, or spice blends with added micronutrients

Bulk procurement models, vendor cooperatives, or branded supply chains targeting street food clusters could make these products more accessible. This could be tied to incentive schemes where vendors who use verified products are eligible for recognition or partnerships.

2. Vendor training and certification partnerships:

Food companies and CSR programmes have demonstrated that hygiene and food safety training can be scaled through private engagement. Examples include Nestlé India’s collaboration with NASVI and Swiggy’s onboarding of street vendors under the PM SVANidhi scheme. These efforts can be expanded to include nutrition modules, with simple guidance on using fresh ingredients, reducing oil reuse, adding vegetables, and reformulating popular items.

Private labs and startups can also provide low-cost food testing services, mobile diagnostics for oil degradation, and self-certification toolkits, enabling vendors to monitor their practices in real time.

3. Enhancing consumer trust and market linkages

Food delivery platforms, e-commerce apps, and local food discovery tools can support transparent vendor listings, hygiene scores, and traceability for consumers. Vendors meeting safety and nutrition criteria can be promoted through these platforms, creating market-based incentives for quality improvements.

Private players in food processing and logistics can partner with municipalities to develop shared kitchen infrastructure, cold chains, or clean cooking carts, helping bridge the infrastructure deficit that currently constrains street food safety.

Future direction and recommendations

To align India’s street food ecosystem more closely with public health and nutrition priorities, future interventions must move beyond hygiene compliance and explicitly address food quality, dietary adequacy, and vendor viability. This shift requires a balanced approach—one that protects consumer health while supporting vendors as key actors in the food system. The following areas offer actionable pathways to reframe street food safety through a nutrition-sensitive lens:

  • Integrate nutrition into food safety standards: FSSAI and state food authorities can incorporate nutritional benchmarks—such as limits on reused oil, inclusion of fortified ingredients, or minimum vegetable content—within vendor certification frameworks. This will help shift attention from contamination control alone to overall food quality.
  • Leverage PM SVANidhi and urban missions for food quality: Existing schemes supporting vendor credit, registration, and formalisation can be expanded to include nutrition training, input linkages, and quality assurance. This creates an integrated model where street vendors receive support not just to operate, but to improve the quality of their offerings.
  • Invest in vendor-centric digital tools: Mobile applications and simple tech solutions can offer vendors access to training modules, hygiene checklists, safe recipe guides, and supplier directories in local languages. These tools can help vendors make informed choices without incurring additional costs or regulatory burdens.
  • Protect vendors from external vulnerabilities: Interventions must account for heat stress, climate variability, and financial shocks that affect vendor livelihoods. Support measures—such as shaded carts, hydration points, health insurance linkages, and climate-resilient infrastructure—should be part of nutrition-sensitive urban planning.
  • Create a healthy street food certification or label: A voluntary nutrition-positive vendor recognition scheme, tied to improved recipes, verified sourcing, and responsible cooking practices, can help vendors differentiate themselves and attract more health-conscious consumers.
  • Raise consumer awareness and drive demand: Public campaigns can increase understanding of nutritional risks in commonly consumed street foods, while encouraging demand for safer and healthier alternatives. Consumer behaviour plays a powerful role in shaping vendor practices—greater awareness can accelerate the shift toward nutritious street food.

Conclusion

India’s efforts to improve street food safety through regulation, training, and infrastructure have laid critical groundwork. However, the focus must now expand to nutrition security, for these interventions to translate into long-term public health gains. Street food will remain a vital part of the urban food ecosystem, especially for low-income consumers. Ensuring that it contributes positively to diets—not just in taste and satiety, but also in nutritional value—requires aligning the interests of vendors, regulators, consumers, and private actors.

By working together to improve inputs, reformulate recipes, and create incentives for quality, stakeholders can transform India’s street food sector into a safe, nutritious, and trusted source of urban nourishment.

This blog was first published on the NUFFOODS Spectrum platform on 2nd June 2025.