How will the FSSAI License help in the growth of your business?

Sonal Pruthi

29 Dec, 2020

The eligible food operators in India (FBO) like the manufacturers, storage, transports, retailers, distributors, etc., need to take license from the State administrative authority. The State Licenses shall be issued by the administrative authorities operating in the State. This aligns with the FSS Regulations Act 2011^[1]. Every FBO -food business operator; who is eligible according to the Act. In this article, We will discuss the complete details of the FSSAI License for business.

The FSSAI License is issued by the Central and State Authority under the food safety and standards authority of India.

FSSAI License/ Registration need?

It is important to note that FSSAI Registration is different from FSSAI License. In the sense that depends on size, and nature of the business, FBO should obtain the compulsory license or registration.

A FSSAI 14 digit number of license tells about the assembling State, producer’s limit. The registration or obtaining license creates more obligations and liabilities and accountability on the FBO to maintain food products’ quality.

FSSAI License Requirement:

1. All the FBOs or small vendors have to obtain the license. An FSSAI License can be divided into two parts; state license and central license.
2. This is based on the size of the business that is a medium scale or small scale business.
3. The ones who are large scale business operators need to take FSSAI Registration from the central government, and medium-sized to small scale vendors, manufacturers, transporters, marketers, traders, etc., needs to take the FSSAI registration from the state government.
4. To apply for the central license, the turnover of FBO must be exceeding 20 crores or more and needs to have operations in more than 2 states.
5. The maximum turnover is 5 years, and the minimum turnover is 1 year.

Purposes

• The ultimate goal is to provide that food products undergo specific quality checks, thereby reducing cases of adulteration and substandard and undefined products.
• It gives security to food products and consumers.
• It gives the safety certificate about the products, which is circulated by the food authority of India.

FSSAI License is a key to business growth

1. The consumer is the king

Every business is dependent on consumers. Its growth is directly proportional to the consumers.

The FSSAI License gives the added advantage to the vendor/ food operator/ trader/ manufacturer and attracts the customers when they are approved by FSSAI.

The importance is more in the digital era when consumers search for everything about the product on the internet. Hygiene, quality, and standard are the prime elements for the growth of any food product.

With the increased alertness of the consumers and consciousness towards healthy food eating options, a consumer wants the product to be of the best quality and not adulterated.

2. Legal Backup

The cost of obtaining a food license is much cheaper than the penalties; one has to pay for being caught selling adulterated or inferior quality products to the consumers. The new update on the procedure of obtaining the license is much more comfortable. The recent amendment has brought ease of doing business in India for the food operators and getting support. After, regularizing the industry through license brings the legal sanctity.

3. Business Growth and Expansion

License is the key to secure loans and funding from the banks for the business.

The added advantage is that every business requires capital and the license is the stamp to invite the investors to expand the business. It becomes easier to develop once the FSSAI License is there, as it builds the investor’s trust to consumers in the company.

4. FSSAI Logo Benefit

The benefit of the FSSAI license is that it add the logo to your product. This logo is government approved. This means that the product gets authentication from the government. It adds to the trust of the consumer.

Whenever the logo is published on the pamphlets or menu cards of a hotel, it publicizes the superior quality of the products or food quality. The FSSAI license gives you edge over the other food operators in India.

The logo seems to bring the mark of quality and assurance to the customers.

5. Builds Trust

The food industry is known for the taste and the quality it gives to its consumers. The license adds to the food that it is harmless and safe, flawless about editable concerns and other health issues.

Read our article:How can a food dealer obtain FSSAI License?

Consequences for Non- Compliance/ Penalties for not obtaining FSSAI License

Every registered person under the FSSAI has to adhere to the FSSAI rules and regulations, as stated under the Act. Food safety inspections are generally conducted on the food business operators in India. They check the level of compliances as mentioned are being met by those operators in India or not.  If the FSSAI Food License norms are not followed, then food safety officers mark it as,

1. Compliance
2. Non- Compliance
3. Partial compliance
4. Not applicable

Based on the observations issued, the food safety officer shall give the notice to the food operator registered under the Act. If the food officer fails to comply with the show cause notice issued to the respective food operator, then he may cancel his FSSAI License in a short time or may impose heavy penalties.

Penalties imposed are such as:

Conclusion

Read our article:An Overview on FSSAI License for Transporter