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Why is it Important to Have a Food License?

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Food and food products directly impact the health of the people and the welfare of the nation. The quality of food should therefore be strictly monitored. The food outlets should maintain adequate standards in order to be eligible to procure the FSSAI license.

India flaunts one of the best and most welcoming food industries in the world. The rich cultural heritage and the large agricultural sector have played a vital role in fostering the Indian food industry. Over the past decades, the Indian food and beverage industry has grown in leaps and bounds. Several food business operators (FBO) started participating in the supply chain for performing various roles such as selling, producing, processing, and distributing apart from manufacturing and cooking food in hotels and restaurants. There arose a situation wherein, these activities had to be stringently monitored and effectively managed to protect the health and welfare of the consumers. For this purpose, laws, guidelines, and more importantly, a dedicated regulatory body were established under the Food Safety and Standards Act 2006.

The Food Standards and Safety Authority of India (FSSAI) is the authority that is accountable for regulating and governing food safety in India. The FBOs within India must obtain a license under FSSAI mandatorily. The license can be applied for and renewed online through the FSSAI portal. The license is therefore indispensable for the functioning of the food businesses in India and obtaining it bestows a number of advantages for these establishments.

Eligibility to Obtain the Food License

Business operators in food manufacturing, transport, storage, supply, and distribution of food products regardless of whether they operate individually or through retailers, hawkers, temporary or permanent vendors, or through stalls must obtain the FSSAI Registration or License. The vendors or businesses that distribute food at social or religious gatherings are also required to obtain the license.

Categories of Food License

There are 3 major kinds of food licenses that are quite different from each other. The businesses should obtain the right kind of license depending upon their turnover and the extent of the operation. The various kinds of licenses are:

  1. FSSAI Central License: This License is obtained by FBOs that have a turnover of 20 crores or more. Large-scale manufacturers, airports, seaports, export-oriented units, importers, etc. opt for this license. The head offices of FBOs also have to acquire an FSSAI central license and apply through Form B
  2. FSSAI State License: This license is applicable for businesses that have a turnover ranging between 12 crores to 20 crores and should make an application through Form B. The State FSSAI License is issued by authorised officers of the respective states
  3. Basic FSSAI Registration: When the annual turnover of a business is less than 12 lakhs a basic FSSAI registration would suffice. The businesses should opt for the same using Form A.

Significance of the FSSAI License

The Food Safety and Standards Authority of India (FSSAI) was established under the Food Safety and Standards Act, 2006 (FSS Act) and FSSAI regulations 2008. The FSSAI is directly overseen by the Ministry of Health & Family Welfare which strives to protect and safeguard consumer interests in India. The various FBOs are required to make an application for the grant of a license in the stipulated format with the FSSAI. The type of license to be taken depends on the turnover of the business.

As the quality of food impacts the health of the public, stricter rules and regulations are laid for businesses in Necessary to obtain a license under the FSSAI.

FSSAI has the following roles:

  • To legally certify various food processing units and businesses that deal with food production. The FSSAI checks the chemical substances employed in food processing units and ensures it is safe for consumption. Adulteration in food has far-reaching effects which could impact the well-being of the people. Food license is therefore of utmost importance to keep a check on the food quality. The license helps to curb accusations of food adulteration and the use of cheap, unsafe ingredients
  • Laying scientific standards in food products for the safety of individuals. Having an FSSAI license assures the customers that the respective food business is of high standards. Usually while conducting food inspection, quality verification is also carried out by the FSSAI
  • Looks after the manufacturing of the food, storage, distribution, sales, and import to safeguard the health, safety, and welfare of the citizens. Before the issuance of the license to a food outlet, stringent verification is carried out, wherein every ingredient is checked in the food product. This ensures the food is manufactured in a way that is suitable for consumption
  • Responsible for creating awareness across the country about food safety and other related issues. Acquiring the FSSAI license also brings credibility to the business. Most food outlets advertise their licenses thus being able to gather more potential customers. This also brings more investors and partners to the business. Thus, the reliability of the business is leveraged when the business procures the FSSAI license.

Non-Compliance Under Food Safety and Standards Act 2006

When the FBOs that are required to obtain an FSSAI license or registration fail to acquire it they might have to face civil liabilities. The businesses will have to undergo an inspection by the Food Safety Officer. The inspection is done to scrutinise the standards of food preparation including the water supply arrangements and accordingly they are marked as Compliant (C), Non-compliant (NC), Partially compliant (PC), or Not applicable/Not observed.

Additionally, the Food Safety Officer may also issue rectifications to be incorporated into the business in case of any dissatisfaction as per Section 32 of the FSSAI Act 2006, and may also cancel the registration/license after giving an opportunity of being heard.

Thus, the FSSAI sets strict standards for food products in order to sustain a commendable quality that is suitable for consumption. The FSSAI works on the principle ‘Prevention is better than cure’ and makes us realise that health comes before wealth. The health of the nation is not something that can be meddled with and the FSSAI license handles it in the right way. The registration of the food outlets and obtaining the license are therefore crucial for food safety and for the welfare of the nation at large.

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