State FSSAI License

Every food business owner must obtain the FSSAI license to carry out his/her business operations. If the food business’ annual turnover is more than Rs. 12 lakhs and less than Rs. 20 crores then a state FSSAI license must be obtained. Manufacturing units with potential up to 2 million tones a day, dairy units managing businesses up to 50000 liters a day, hotels with 3 star or more ratings, clubs, repackers and relabeling facilities, canteens, all the catering business irrespective of their turnover requires to apply for state approval. This license has a fixed term of 5 years, and a minimum of 1 year. Let us now grasp how and when they are required to receive the FSSAI state certificate.

Benefits of State FSSAI License

• Consumer Awareness: Consumers are becoming ever more aware of the food quality and its standard and hygiene in this era of technology. Before buying any food from outside, the consumers prefer to have food that is compliant with FSSAI. This gives them more assurance in terms of the quality of the product, free of contaminants, artificial flavoring, etc. Additionally, this provides the customer a fair proof of asking whether there is something wrong with the product that is being offered. There is therefore much less chance of food quality being poor among sellers with a food safety license. Obtaining a food license, therefore, offers you a direct advantage in growing the customer base at a rapid pace.
• Legal Advantage: Generally speaking, everybody thinks that obtaining a food license would be a difficult task with many problems including paperwork and unnecessary documentation as well as time-consuming. There is also this false notion that there is a need for a great deal of money to get a food license. And it will be a big loss for a new company to get a food license. Yet the truth is precisely the opposite of this. Food licenses can be quickly obtained without much trouble and for a reasonable fee. The business that is done without a food license is imposed a hefty penalty.
• Using FSSAI Logo: The FSSAI only provides licenses for businesses with the highest standards of hygiene. So, if you have a food license, you can show it on the menu card, packing bags, pamphlets, etc. The FSSAI logo on the food product brings superior quality to your product over others. The FSSAI license has a valid FSSAI number which gives customers more assurance about food standards. Nowadays, customers only buy the food item that has the FSSAI logo and a number. This increases the number of customers by a very large margin.
• Business Expansion: Every new business that begins is eager to expand its business to new locations and to explore a new market or customer base. But setting up a business at a new location should make the customer feel safe to purchase a new product. When you have a valid food license, it is much easier to expand your company to new regions or to open new outlets. It will make it much easier to get the loan or other financing needed to grow the company, as it gives the individual or bank offering the loan a sense of trust.

Checklist Eligibility for FSSAI state license

A license applies to FBOs that are not classified as small food businesses. The amount of the business of the FBOs also makes them eligible for a license in terms of profits and their annual production capabilities.

Eligibility for FBOs for the FSSAI state license includes-

• Dairy units like milk chilling units designed to handle or treat milk more than 500 to 50,000 litres per day or 2.5 to 2.500 million tons of milk solids annually.
• Vegetable oil processing units and even vegetable oil units via the solvent extraction process and refineries including the oil pressing units producing up to 2 million tons every day or having an annual turnover of Rs 12 lakh and above.
• Slaughter units with a capacity of more than 2 and up to 50 large animals; a capacity of more than 10 up to 150 small animals and a capacity of more than 50 and up to 1000 poultry birds per day.
• Meat processing units with a capacity of up to 500 kg per day, or 150 MT per year.
• All food processing units that even include those that repack and relabel with a capacity of more than 100 kg per litre and up to 2 million tons per day and includes all units of grain, cereals, and pulses.
• Storage business owners that have loads of 500 to 50,000 million tons, excluding those that have controlled environment and cold;
• The eligibility requirements are a capacity of further than 10,000 million tons for cold and refrigerated storages, and the eligibility capacity is more than 10,000 million tons for storages that have a cold and controlled atmosphere too.
• Wholesalers with a turnover of up to 30 crores per annum. Vendors, distributors, suppliers, and catering companies with up to 20 crores of annual turnover.
• Owners of establishments selling food such as Dhaba, as well as clubs and canteens with a turnover of 12 lakhs per year.
• Hotels with a minimum rating of 3 stars, and below 5 stars. Restaurants with turnover up to 20 crores of Rs.
• Marketers who have 20 crores of turnover annually. Transporters that have at least 100 vehicles or wagons, or up to 30 crores per year.

Features of FSSAI State License

As we understand, FSSAI is the abbreviation for Food Safety and Standards Authority of India. This authority makes sure that all those involved in the food industry, including those involved in the manufacture, storage, processing, distribution, selling and importation of food, meet certain scientifically validated standards and guidelines that ensure the hygienic nature of the food product, have met the quality standards and are safe for human consumption. Below are the

FSSAI State Licensing features:

• If the food operator does not obtain an FSSAI license, they fall under the legal offence proceedings and are penalized for ignorance.
• Obtaining an FSSAI license is a one-time expense. The license is valid for 1-5 years, depending on the scale and requirements of the particular business.
• Every person involved in food operations such as manufacturing, retailing, transporting, or in any way dealing with food products must obtain a state license.
• The issue of a license or certificate of registration is governed by the terms of the Food Safety and Standards Regulations 2011.
• The requirement for FSSAI licensing or registration varies according to a food business’ type and nature of operations.

India’s Food Safety and Standards Authority, FSSAI issues three different forms of food licenses. They are

• FSSAI Central License: The Central Government issues the Central License. The FBO shall be authorized for its headquarters if it is operational in more than one state. This FSSAI central license is necessary for FBOs such as exporters, importers, producers, operators etc. in central government facilities such as airports, seaports, etc.
• FSSAI State License: The state government issues the food license for the state. The FBO must receive the license from the state government if it is present or performs operations in just one state. FBOs such as small and medium-sized enterprises, retail chains, transporters, suppliers, marketers, etc. must secure the FSSAI state license. It is mainly provided to the units with an annual turnover exceeding Rs.12 lakhs.
• FSSAI Basic Registration: The state government issues the FSSAI Basic Registration. FSSAI basic registration is mostly given to those units with annual turnover under Rs.12 lakhs. FBOs such as small-scale producers, dealers, hauliers, distributors, retailers, etc. who are compliant under the minimum specifications will be registered with the system.

Steps involved in FSSAI Registration through Edu-Visor

• Step 1: We collect and verify the documents like Form B, list of partners, processing unit plan, food category list, NOC, etc.
• Step 2: We file the FSSAI application on your behalf.
• Step 3: You procure the FSSAI License and enjoy legal benefits, goodwill, and create consumer awareness.

Documents required for FSSAI State License

There are certain papers that you must arrange for obtaining an FSSAI state license. Such FSSAI license documents are proof of the establishment of your valid food business.

• A complete list of directors or society members with full address and contact details.
• A fully furnished list with details of machines and their registration number, working capacity, and power consumption.
• Details such as ID and proof of address of the authorized signatories.
• List of categories of foods planned to be produced.
• Certificate obtained for cooperatives under Coop – 1861 / Multi-state Coop Act – 2002 (if it’s a cooperative firm)
• FBO’s Declaration and Undertaking
• Form-B – The owner or spouse or the approved member must complete and sign it
• Authority letter with name and address of the person responsible appointed by the supplier along with the alternate person responsible
• FSSAI Proprietorship Self-Declaration
• NOC & copy of Manufacturer’s License
• Plan or certificate for Food Safety management system
• Municipal or state authorities’ NOC
• Form IX: Business nomination of individuals, along with Board’s approval

Depending on the kind of business, the business owners will also have to submit the following documents:

• If its a manufacturing business, then the documents to be submitted are:
  • a. A report on the quality analysis of water, which is used in the food. It must be from a recognized health laboratory to validate portability.
  • b. Evidence that the premises have been held or owned.
  • c. Milk source or acquisition plan including milk collection centers (for processing milk and milk products).
  • d. Raw material sources for meat processing plants.
  • e. A report on pesticide residue of water from a well-known public health laboratory for a unit producing drinking water, mineral water, and carbonated water.
• If its a transportation business, then the documents to be submitted are:
  • a. Certificate issued by the Ministry of Tourism.
  • b. Self-declaration for the various vehicles utilized in the operations.
• If its a partnership business, then the documents to be submitted are:
  • a. Deed on partnership
  • b. Ownership affidavit or MoA about the incorporation of the company.

Consequences and Penalties for Non-Compliance

To ensure the safety, security, and proper law and order in society, rules and acts are formulated. The Government of India has come up with the Food Safety Standards Act, 2011 under that principle. The goal behind this act was to simplify and put under one umbrella several laws relating to the food sector. The FSSAI or Food Safety and Standards Authority of India was founded to develop scientifically validated standards for food products to guarantee their protection for human consumption. The Agency also oversees and governs the processing, manufacture, distribution, sales, and importation of food products to ensure consumers get healthy and safe food. As a result, the FSSAI Act aims to control and administer the food industry and as part of its work, it levies different forms of penalties on business owners for violating such regulations.

Any person who is registered or licensed under FSSAI must comply with the rules and regulations of the FSS Act, 2006. Food safety officers usually audit the food business operator’s facility and assess the level of compliance with the legislation using a checklist. Based on the level of observance, this is marked by the food safety officer as:

• Compliance (C)
• Non-compliance (NC)
• Partial compliance (PC)
• Not applicable/Not observed (NA)

Premised on the above, an improvement notice could be issued by the Food Safety Officer (FSO) wherever required by Section 32 of the FSS Act, 2006. Unless the business operator fails to comply with the notice of improvement, the officer may revoke his/her license after requiring the licensee to show cause.

Offences by Enterprises

To control food products and their protection for human use, in the case of violations, the FSSAI Act imposes certain penalties on business enterprises. The penalties can be levied on both companies, whether it is a private limited firm or a public limited company.

• If a company commits a breach under this Act, all those in charge of the company who were present at the time of the offence, who were liable to the company for its business and actions, and the company itself, are found guilty of the crime. They are therefore punished and penalized.
• When a company has several divisions or units in various branches of the establishment, the head of the department or division of the company as appointed by the company shall be held liable for food safety and shall be liable for any contravention of such department or a unit.

Penalty if a company operates without an FSSAI license

Where a food business owner or operator who is to obtain an FSSAI license but conducts business operations without acquiring the same shall be punishable as specified in the Act. The person or firm found guilty of any violation may be punished with up to six months ‘ imprisonment and/or a fine.

Penalty if the food article is sub-standard

If a person or a company is found selling the substandard quality of food and flouting the compliance requirements, the same shall be penalized with a fine. The people or the companies exempted under sub-section (2) of section 31 of this Act for non-compliance shall be liable to a penalty.

Penalty if a food item is below the specified standard

If an individual or a business is found selling the lower quality of the food and violating the criteria of enforcement, then it shall be penalized with a fine. The owners or companies exempted for non-compliance under subparagraph (2 ) of section 31 of this Act shall be liable for a penalty.

Penalty for faulty branding

If an individual or a business produces or engages in the storage, selling, distribution, or importation of misbranded food products, a penalty shall be levied with a fine. He or she will either have to destroy those food items or take immediate measures.

Penalty for food items containing unwanted or foreign matter

When an individual or a corporation produces, sells, or imports food items for human consumption food products that are found to contain extraneous or alien content, the same shall be deemed to be liable for a fine.

History of FSSAI and recent updates

FSSAI was formed under Food Safety and Standards, 2006, which integrates various acts and regulations that have dealt with food-related issues in different departments and ministries. Even though it was formed by the Government of India’s Ministry of Health & Family Welfare, it is regarded as an independent organization. FSSAI was established to set scientific standards for food products and to regulate their manufacture, processing, distribution, sales, and importation to ensure safe and wholesome food available for human consumption.

Every food business operator must obtain compulsory FSSAI Registration or License. FSSAI License is different from FSSAI Registration, in the sense that FBO should obtain the necessary registration or license depending on the nature and size of the business.

This is a 14-digit identification number or a registration number printed on all food packets. This registration process aims to make the FBO more accountable for ensuring the quality of food items.

Some of the recent updates on FSSAI includes the following:

• Under the Eat Right India guidelines, FSSAI recently issued guidance on food hygiene and health guidelines for food businesses during the COVID pandemic.
• In line with the Prime Minister’s dream of ‘a local call for global outreach’ in the areas of improved health, retail integration, and enhanced revenues as main areas of focus, Rs 10.000 Crore from the central government is intended to help two lakhs of food-micro enterprises.

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