FSSAI Registration of Petty Food Businesses

Narendra Kumar

12 Jan, 2021

Petty Food Businesses are one of the top flourishing industries because this is an industry whose demand will never go down. The food businesses running need to sell food which is safe by following the guidelines given by the government. The Food Safety and Standard Authority of India is the governing body who ensures the safety of food delivered by these businesses by issuing a license. We are going to know about this in detail in this blog.

What is a Petty Food Business? Introduction on Petty Food Business

Petty food businesses are the type of business or a person who manufacturers or sells their products themselves. Small food business operators who have a turnover of less than Rs.12 lakhs per annum come under this category of food business. This type of food business is very popular and a major source of a variety of foods in India.  There are several types of petty food businesses. These are namely,

Manufacturers

• Dairy units including the chilling units involved in handling or processing: Units managing up to 500 liters of milk per day or producing 2.5 metric ton of milk solids per year.
• Vegetable oil processing units and Units producing vegetable oil by using the method of solvent extraction and refineries including oil expelled units. All these units having a turnover up to Rs. 12 lakhs is only eligible.
• Meat processing units having a turnover up to Rs.  12 lakhs.
• Units including re-labelers and re-packers: whose turnover is up to Rs. 12 lakhs and deals with a food capacity of 100 kg or 100 liters
• Slaughtering units who deal with 10 small animals, 50 poultry birds and 2 large animals per day

Storage Units

• Storage units except for the Controlled atmosphere units and cold having turnover not exceeding Rs. 12 lakhs.
• Cold/refrigerated units : whose turnover is up to Rs. 12 lakhs
• Controlled atmosphere units : whose turnover is up to Rs. 12 lakhs

Other Businesses

• Wholesalers
• Retailers
• Distributors
• Suppliers
• Clubs and canteens
• Hotels
• Restaurants
• Transporters
• Marketers
• Hawkers or mobile food vendors
• Petty retailers of snacks and tea stalls
• Dhaba, boarding houses, Banquet halls, home based canteens, dabbawalas, permanent and temporary stall holders, food stalls, Religious or social gatherings who distribute food and other food vending establishments

Why do you need a Food License?

People or entities who wish to start their businesses in food sector have to obtain FSSAI License in order to carry any food related business. Entities need FSSAI License depending upon the eligibility and the type of business they wish to run. Based on that, there are two types of FSSAI Registration.

Is Food License Mandatory?

All food businesses in order to function need a FSSAI Registration. Without license any food business is not allowed to run. The Food Safety and Standard Authority issue a license under FSS Act^[1] which is mandatory for all businesses to print that number on the packaging. Also, it is compulsory for the restaurants and hotels (all FBOs) to display their license during the working hours.

Read our article:How to Avoid Delay in Getting FSSAI License?

Difference between FSSAI License and FSSAI Registration

FSSAI Registration is mandatory for all food business operators. Above we saw that there are two types of FSSAI Registration, and there are two types of FSSAI License. The type of FSSAI Registration depends on the nature and the budget of the food business.

The major difference between FSSAI Registration and license is

FSSAI License: There are two types of FSSAI License, namely;

• FSSAI Central license: FSSAI Regional Offices functioning all over the nation issues the Central License and can be issued and renewed for a period of 1 to 5 years.
• FSSAI State license: Each state has a concerned state authority to issue the State license to businesses like manufacturers, storage units, transporters, retailers, marketers, distributors etc.

For full information please read: Difference between Registration and License

Documents needed for FSSAI Registration of Petty Food Business

As Petty Food Businesses are relatively smaller than food factories or manufacturing units they are required to submit lesser documents in order to receive the license. The documents that need to be submitted by these types of FBOs are:

• Photo ID of the owner
• Rent agreement/ utility bill
• Partnership deed
• List of food products that are manufactured
• Form B signed and completed

How to get FSSAI License

Here given are the steps to obtain the FSSAI License by the food business owners:

• First the applicant has to submit Form A to Food & Safety department.
• The Food & Safety department may accept or reject the application. The department also intimates the applicant in written. This process takes seven days.
• The Food & Safety department issues a registration certificate if the application is accepted.
• After the completion of these steps the applicant receives the license.

Exemptions of food license

There are certain FBOs who do not need to obtain FSSAI Registration. Furthermore, Petty retailers are exempted from obtaining the FSSAI registration/license. Apart from this following FBOs are exempted:

• Itinerant vendors
• Small-scale FBOs
• Cottage food seller
• Tiny food business operators
• Temporary stallholders
• Hawkers
• Other food businesses with a turnover less than 12 lakhs

Penalty for the violation of FSS Act

The FSS Act has set guidelines and every running food business needs to follow those rules. Hence, food business operator contravenes to these laws or else they, are bound to punishment. There can be cases where an FBO can be eligible for penalty.

Penalty for running a food business without license: Every food business operator has to have a license to carry out their business. The penalty on failing to so be imprisonment up to six months and fine up to five lakhs. 

Fine for selling food not under the prescribed quality/substance/ nature etc.: Food businesses needs who sell foods not meeting the prescribed quality/substance/ nature under the FSS Act are liable to a fine not more than Rs. Five lakhs and the fine for the exempted category is up to Rs. Twenty five thousand.

Punishment for sub-standard food: The penalty for the selling of substandard article of food can extend to Rs. five lakhs.

Penance for misbranded food: Any food operator who sells food by misbranding it in any means is liable for fine up to three lakh rupees.

Fine for selling food containing extraneous matter: A person, who sells, stores, distributes or imports food items containing extraneous matter have to pay a fine up to one lakh rupees.

Punishment for manufacturing or processing food in unhygienic conditions: An FBO who manufactures or processes food in unhygienic / unsanitary conditions is liable for a fine up to one lakh rupees.

Disclaimer

The Indian Government has made rules under the FSS Act, which keeps track and ensures all the food businesses in India are registered irrespective of their size. It issues licenses to these businesses to ensure that the food product they are manufacturing or selling is fit for human consumption. Also, it ensures that the food is manufactured in a clean environment and the process of distribution is clean.

FSSAI Registration is mandatory for all types of FBOs which are in running condition, including the petty food businesses. They even need to display their license during their working hours proactively. This showcases that the food they are providing to the customer is clean and safe.

If you need FSSAI License or have any query regarding the matter you can contact our team of experts at Enterslice.

Read our article:How to Start a Catering Business in India