Food License in India

food license in india

Food License in India:

A food license in india or FSSAI license is granted to all manufacturers, traders, restaurants carrying out any food business which may involve manufacturing or processing. On applying for FSSAI registration, a unique 14-digit license number is issued which has to be quoted on all food packages. Food License in india is issued by FSSAI now FoSCos which stands for FOOD SAFETY COMPLIANCE SYSTEM. FoSCos is the new system launched by FSSAI which was effective in some states from 01-06-2020 and from 01-11-2020 it’s working on PAN India.

Who needs Food License in India? :

Every food business operator involved in the manufacturing, processing, storage distribution, and sale of food products must compulsorily obtain FSSAI Registration or License. The registration procedure is aimed to create more accountability on the FBO to maintain the quality of the food products.

Types of Food License in India :

There are Three Types of Food License in India which is issued by the Authority depending upon the Turnover and activity of the Food Business Operator (FBO). The Three Types of Licenses is as follows :

  1. Basic Registration – Small Business operator having Annual Turnover upto Rs. 12 Lakhs
  2. State License – FBO having Annual Turnover between Rs. 12 Lakhs till Rs. 20 Crores
  3. Central License – FBO having Annual Turnover above Rs. 20 crores or involved into Import and Export Business

Basic Registration Requirements:

FSSAI Registration is a basic license and it is required for all the FBOs involved in the small-scale food business. This category covers the following businesses:

  1. Any FBO with an annual turnover of not more than Rs. 12 lakh.
  2. Petty retailer dealing in food products
  3. Any person who manufactures or sells any food article by himself
  4. Food sale is done by the temporary stallholder
  5. Any individual who distributes food in any religious or social gathering except a caterer
  6. Small-scale or cottage industries dealing in the food business and the following.
    Sn. Business Activity Capacity
    1. Food production capacity (other than milk and meat) Up to 100 kg/ltr per day
    2. Procurement, handling, and collection of milk Up to 500 ltr per day
    3. Slaughtering capacity 2 large animals or 10 small animals or 50 poultry birds per day or less

State & Central License Requirement :

For all other FBOs apart from those mentioned above, an FSSAI license has to be obtained. FSSAI License can be classified into two categories i.e. State FSSAI License and Central FSSAI. License based on the size of the business whether it is a medium scale or large scale business. Generally, FBOs who are large manufacturers, importers, exporters dealing in large-scale food businesses need to obtain FSSAI registration from the central government and FBO with small to medium-sized manufacturing units, transporters, marketers, traders, etc., need to take FSSAI registration from the state government.

To apply for State food License in India the FBO must have a turnover between Rs 12 lakh to Rs 20 crore. Other conditions include manufacturing units having a capacity of 2MT per day, dairy units handling business up to 5000 liters per day. 3-star hotels and above, repackers, relabelling units, clubs, canteens all catering businesses irrespective of their turnover need to apply for the license. The tenure of the license is a maximum of 5 years and a minimum of 1 year.

To apply for a central license the FBO must have a turnover exceeding Rs. 20 crores and needs to have operations in two or more states. All importers and exporters need to apply for this license. The maximum tenure is 5 years and the minimum is 1 year.

Renewal of License/Registration :

The FSSAI license/Registration is essential to commence the food business, similarly, it is imperative to renew the license. The license is issued for a validity of 1 year or 5 years, so the business must apply for renewal 30 days prior to the expiry of the current license.

Annual Compliance of Food License in India:

The FBO has to file Returns. The Periodicity of the return is pre-defined based on the type of FBO which is as follows :

  1. Only Merchant Exporter can file Quarterly annual report through online system
  2. FBO manufacturing Milk and/or Milk products shall file half yearly return in the Form D-2 and submit it manually to the to the concerned Central/State licensing Authority for the periods 1st April to 30th September and 1st October to 31st March of every financial within a month from the end of the period
  3. Manufacturers and Importers have to file Annual Return(Form D-1) and submit it manually to the concerned Central/State licensing Authority on or before 31st May of each year for each class of food handled by him during the previous financial year.

Penalty for Non-Compliance of Rules & Regulations :

The following are the list of penalties for non-compliance with rules & regulations as defined under the FSS Act, 2006 :

Sn. Type of Non-Compliance Penalty amount
1. Extraneous matter in food Rs. 1 Lakh
2. Unhygienic processing or manufacture Rs. 1 Lakh
3. Failure to comply with Food safety officer direction Rs. 2 Lakhs
4. Food quality not in compliance with act Rs. 2 Lakhs
5. Misbranded Food Rs. 3 Lakhs
6. Sub-standard food Rs. 5 Lakhs
7. Home bakers selling products without license Rs. 5 Lakhs
8. Misleading advertisement or false description Rs. 10 Lakhs