Under this system, red colour will be given if the per 100 grams sugar content is over 11 grams.
For between two and 11 grams sugar content, the colour will be yellow and for below two grams it will be green.
However, biscuit manufacturers oppose this measure, arguing that the taste of their products will suffer as a result.
In August 2016, the colour code system was first introduced for soft drinks as per food act no. 26 of 1980.
The subject minister has said that a special levy would be introduced for foods containing a very high sugar, salt and fat content.
Consumption of foods with a high sugar content leads to long-term diabetes and other diseases.
The WHO recommends a control of all kinds of sugar in foods, other than natural sugar in fruits and milk.