Food License
The full form of FSSAI is the Food Safety and Standards Authority of India. It is a regulatory body established and governed by the Food Safety and Standards Act, 2006. The Act empowers this legal authority to ensure the safety of food products delivered to the consumers.
Sometimes FSSAI is also called the Food Authority of India. It is a legal entity with headquarters in Delhi. The branch offices are located throughout India for ease of businesses in getting a Food License.
Its functions are specified by the Government of India and the Ministry of Health & Family Welfare. Both these authorities also act as consultants for the FSSAI Food License. FSSAI is in charge of setting standards for food and its processes in India.
The government’s objective to incorporate FSSAI is to ensure that the food products that are being delivered to the consumers are wholesome and fit for human consumption. FSSAI is accountable for protecting and promoting public health. And the authorized body to penalize non-compliant businesses.
Role of Food License
FSSAI has been incorporated to ensure the safety of food. The vision was to ensure that the food being consumed by the public is adulteration-free, consumable and healthy. That the food that the final consumer is buying is value for money and, in no way, harmful to the health.
To achieve this purpose, certain standards have been laid down by FSSAI. They cover all stages such as manufacture, storage, distribution, packaging, sale, export, and import of food items. These standards have been implemented after conducting meticulous research, trials, and testing. The procedures are backed by science and technology.
- Framing of Regulations to lay down the Standards and guidelines in connection with the articles of food and defining an appropriate system of enforcing various standards thus notified.
- Laying down mechanisms and guidelines for accreditation of certification organizations engaged in certification of food safety management system (FSMS) for food businesses.
- Laying down system and guidelines for accreditation of laboratories and notification of these accredited laboratories.
- To provide scientific advice and technical support to Central Government and State Governments in the matters of drafting the policy and rules in domains that have a direct or indirect implication on food safety and nutrition.
- Collect and collate data about food consumption, incidence, and prevalence of biological risk, contaminants in food, and residues of various contaminants in food items. Identifying the emerging risks and introduction of a rapid alert system.
- Creating a network of information across the country so that the public, users, Panchayats, etc. receive rapid, reliable and objective information about food safety and other issues concerning it.
- Provide training programs for persons who are engaged or intend to get engaged in food businesses.
- Contribute to the development of worldwide technical standards for food, sanitary and phytosanitary standards.
- Promote general awareness about food safety and food standards.
Types of Food Registration
As per the Food Safety and Standards Act, 2006, any business entity, with operations associated with food. Working at any level or scale. Has to get itself registered and get an Food License. The Food Business Operator could be involved in one stage only or all steps of manufacturing, wholesaling, supplying, packing or re-packing, trading, labelling or re-labelling, importing or exporting, or even transporting has to go through the FSSAI registration process. Else it is liable to get penalized for non-compliance. Additionally, FSSAI is authorized to fine the business, shut the business down, prohibit it from operating further, or up to imprisonment of the involved persons or directors.
Whether your business needs an FSSAI License or an FSSAI Registration only, depends on a few factors. Annual turnover, installed capacity, area of operations, whether limited to one state, have branches, etc., are the key determinants.
The types of FSSAI are:
- Basic FSSAI Registration,
- State Food License,
- Central Food License.
Eligibility of Food Registration
The eligibility criteria for which type of registration has been listed below. To make it convenient for the FBOs to choose and apply for the correct certificate.
Basic FSSAI Registration
FBOs that have an annual turnover anywhere between Rs. 0 to Rs. 12 lakh are required to apply for a Basic Food Registration.
These include all small scale operators, which are working from and within a single area, region, city or town have to be registered under FSSAI as Basic FBO. This kind of Basic certificate has to be applied to the State where the business is based. The provisions for eligibility to Basic Certificate are as follows:
- FBO (wholesaler, distributor, supplier, retailer, food vending establishments, hawkers, club, canteen, Dhaba, hotel, restaurants, storage) with an annual turnover of less than Rs. 12 lakh,
- Retailers selling food items, with limited operations,
- Petty producers manufacturing by itself,
- A makeshift stall selling food products,
- Businesses involved in selling food at a social or religious gathering, other than a caterer,
- Cottage industries associated with food products,
- Production and/or processing units of vegetable oil by the process of solvent extraction and/or refineries including oil expeller system. With a capacity to produce not more than 100 kg/litre per day (except milk or meat),
- Dairy units, involved in procurement/collection/handling/chilling of milk, having a capacity of not more than 500 litres per day, or up to 2.5 Metric Ton of milk solids annually,
- A slaughtering capacity of not more than 2 large animals or 10 small animals or 50 poultry birds per day.
State Food License
The basic criteria for applying for a State Food License is that the annual turnover of your business is falling somewhere between Rs. 12 lakh up to a maximum of Rs. 20 crores. You need to apply for FSSAI State License to the state government where your business is based in.
The rules governing this license are:
- FBO (supplier, wholesaler, distributor, retailer, food vending establishments or Dhaba, club, canteen, restaurants) with an annual turnover of between Rs. 12 lakh to up to Rs. 20 crores,
- Proprietary Foods,
- Production and/or processing units of vegetable oil by the method of solvent extraction and/or refineries including oil expeller unit. With a turnover between Rs. 12 lacs to Rs. 20 crores annually,
- Hotels of 4-star ratings or less,
- Storages having a capacity of less than 50,000 metric tonnes annually,
- Dairy Units (including milk chilling units), with a daily capacity to handle or process, between 500 to 50000 litres,
- A daily slaughtering capacity of more than 2 and up to 50 large animals. Or the capacity of handling more than 10 and up to 150 small animals. Or daily capacity of more than 50 to up to 1000 poultry birds,
- All food processing units other than the ones mentioned above, including re-packers, with a daily capacity of not less than 100 kg/litre to up to 2 metric tonnes.
Central Food License
The primary condition to become eligible for a Central FSSAI Registration is that the annual turnover is over Rs. 20 crores.
The Central Government is to be applied for this license.
Besides this essential rule, there are some other elements to be considered. Such as 100% export oriented units, importers, operators associated with the Central Government and related agencies.
The FBOs having more than one branch of restaurants or food joints need to apply for a Central Food License. FBOs operating in 2 or more states have to apply for one Central License for its Registered Head Office and separate license/registration for each branch as per the eligibility standards applicable to them.
Following Food Businesses need to apply for FSSAI central license by the regulatory authority:
- FBO ( restaurants, retailer, distributor, supplier) with an annual turnover of more than Rs. 20 crore,
- Manufacturing and/or Processing units of vegetable oil by the method of solvent extraction and refineries including oil expeller unit, with a capacity of over 2 metric tonnes per day,
- Dhaba, club, canteen, and other food vending establishments with branches spread in more than one state and an annual turnover of more than Rs. 12 lakh,
- Wholesalers that have an annual turnover of not less than Rs. 30 crores,
- Hotels that have been rated 5-star or more,
- 100 % export oriented units involved in food production or processing,
- All Importers (including the import of food ingredients or additives),
- Caterers working under Central Government or related agencies such as Railways, Airlines and airport, Seaport, Defence, etc.
- Storages with a capacity of more than 50,000 metric tonnes,
- Dairy Units (including chilling units), with a capacity to handle or process, over 50,000 litres per day,
- A slaughtering capacity of over 50 large animals or more than 150 small animals or more than 1000 poultry birds per day,
- All food processing units other than mentioned above including re-packers, (excluding the grains, pulses & cereals milling units) with a capacity of over 2 metric tonnes per day,
- All FBOs involved in producing an item of food, additive or its ingredient, using some new process or technology, and/or a combination thereof, whose safety has not been established yet by the FSSAI. Or they may not have a history of safe usage. It covers the food articles being introduced in the country, for the first time.
Why You Should Get Food License Registration
- The buyers, nowadays, are more alert and informed about the quality of the food which they utilize. Due to multiple options of good and healthy food availability, the consumers want to know as to the contents of what they are taking in. Whether it is safe, adulteration-free and of really good quality? Besides, recent controversies of some well-known brands producing and delivering inferior food or using harmful ingredients, the consumers are taking seriously the standards of food safety. In such cases, the FBOs with a Food License has an added benefit of a solid and loyal customer base.
- If you think that getting an FSSAI registration would be a waste of time, efforts, and money. That this is only another certificate. And you have been avoiding to get the license. You must consider it again. You would realize that the ends justify the efforts. The expense is tiny as compared to the penalties that can get imposed upon for not going by the law.
- On getting the certificate, you can use the FSSAI logo to enhance sales and goodwill. You can promote and publicize the superior quality of your product over others. This gives you an advantage over those operating without an FSSAI registration. The FSSAI logois a mark of validity and an assurance to the consumers. Careful and aware customers prefer to buy only those products that possess the FSSAI logo.
- An FSSAI Registration or License will help in the process of applying for and getting bank loans that boost your business growth