India's Culinary Landscape : Regulations and Growth In Food Industry

Shourya Rajput

The food industry is one of the fastest-growing sectors in India. This growth is driven by India's agriculture-based economy and the surge in food delivery apps and cloud kitchens. Over recent years, India has seen a significant increase in various food ventures such as food trucks, food stalls, and food streets. These activities encompass the production, processing, and distribution of food.

With the rise of these food businesses, the need for stringent food laws in India has become more critical. These laws aim to protect consumers and ensure the effective management of the food industry. In India, the Food Safety and Standards Authority of India (FSSAI) is responsible for setting standards to ensure and maintain the quality of food by providing hygiene and preparation standards.

Additionally, several other laws and regulations govern the food industry in India. These regulations cover aspects such as proper hygiene, licensing, and the necessary permits required for entities in the food business. This comprehensive regulatory framework is essential for ensuring the safety and well-being of consumers while promoting the sustainable growth of the food industry.

Over the years, numerous laws and regulations have been enacted in India to regulate the food processing industry. These laws have undergone significant changes. The pivotal role played by the Food Safety and Standards Authority of India (FSSAI) in revolutionizing food safety standards in India is particularly noteworthy.

The food industry in India is primarily regulated by the Food Safety and Standards Act, 2006 (FSS Act). In addition, the Central Government has enacted several other rules and regulations to oversee food safety standards in India, including the Food Safety and Standards Rules, 2011, and the Food Safety and Standards Regulations from 2011 to 2019.

To start a business, several initial legal requirements must be fulfilled. Key among them are:

FSSAI License: Depending on the annual turnover of the business, one of three types of licenses can be obtained. If the business generates less than Rs. 12 lakhs per annum, a basic FSSAI license is required. For businesses generating more than Rs. 12 lakhs per annum, a State FSSAI license is necessary. If the business generates more than Rs. 2 crore in revenue, a Central FSSAI license is required. Once the registration process is completed, the business operator receives a 14-digit FSSAI license number. Every food business operator is required to declare this FSSAI license number on product labels, invoices, bills, cash memos, etc. This license ensures consumers that the business adheres to the hygiene and safety standards set by FSSAI. The license can be issued with a validity ranging from 1 to 5 years.

No Objection Certificate (NOC) from Local Authorities (Local Municipal Body): It is essential to obtain a NOC from the local municipal body to ensure that the business complies with all regulations and does not disturb the peace in the area. This also helps regulate the waste generated by the business.

Eating House Establishment License: This license is required for operating food trucks, small street shops, canteens, restaurants, etc. It can be obtained under the Shops and Establishments Act by submitting an online application on the website of the state’s police department, along with a copy of the FSSAI license, GST certificate, and other relevant documents.

NOC from Fire Department: Another crucial requirement for setting up a food business is obtaining a No Objection Certificate (NOC) from the local fire department. This can be achieved by submitting an application to the respective fire department along with necessary documents such as building plans, a building model, and a certificate from the architect. Additionally, a questionnaire regarding compliance with fire safety rules and regulations must be completed. After verifying the application, fire department officials will conduct an inspection of the premises.

Suspension or Cancellation of FSSAI License

If a food business operator fails to meet sanitary and hygiene standards, the FSSAI Authority may issue an improvement notice, providing at least 14 days for the operator to address the issues. If, upon re-inspection after this period, the deficiencies remain unresolved, the FSSAI will revoke the operator's license, requiring the business to cease operations immediately. Failure to stop operations will result in penal actions under the FSSAI Act. After three months of the license cancellation, the business owner may apply for a new license, provided all requirements specified in the improvement notice have been met.

CONCLUSION

In conclusion, India's food industry is rapidly expanding, driven by agriculture and the rise of food delivery services. The Food Safety and Standards Authority of India (FSSAI) plays a crucial role in enforcing strict regulations to ensure food safety and hygiene. Compliance with these regulations, including obtaining FSSAI licenses and local clearances, is essential for establishing and operating food businesses in India. Upholding these standards not only protects consumer health but also supports the sustainable growth of the industry.