FSSAI License

Throwing Light on Petty Food Business Concept and Registration Process

calendar13 May, 2020
timeReading Time: 5 Minutes
Petty Food Business

The petty food business in India is springing up, and by looking at its ever-increasing demand, we won’t mind saying that the growth of industry would never see its lows in the forthcoming years. Those who are into petty food businesses must follow the safety standards for food prescribed by the government authorities for selling the food. The FSSAI (expanded as the Food Safety and Standard Authority of India[1]) is a regulatory body that ensures the quality as well as safety of food served by petty business in India by granting them a license to take further steps.

To deal with the food safety-related problems, FSSAI has made FSSAI license mandatory for all the food business operators, regardless of the size and nature of their business. Bearing in mind the size of the business, Food Safety and Standard Authority of India is a responsible body to issue a central license for mid-size and giant-size food businesses, a state license for those enterprises that are considered as medium enterprises due to their mid-scale business, and for petty food business, registration is a must.

Petty Food Businesses and Their Types

Petty food businesses are a form of food business in which a person or business is involved in selling and manufacturing of their products. These businesses have planted their roots in the Indian market and have become the most prevalent sources of food, snacks, and luncheons in the Indian food industry. All food business operators with a turnover below Rs 12 lakh fall under this type of food business. Various kinds of petty food businesses that are spreading their wings in India are-

Manufacturers

  • Dairy units that encompass the chilling units engage themselves in handling along with processing. Units are looking after 500 Litre milk on a daily basis and around 2.5 metric tons of milk solids annually.
  • Meat processing units having a turnover not crossing the 12 lakhs figure.
  • Slaughtering units that trade in 50 poultry every day, up to 2 large animals daily, and 10 small animals.
  • Re-labelers and re-packers as a part of food processing units: Turnover must not surpass 12 lakh figure and trade in a food capacity of 100 L or 100 kg.
  • Vegetable oil processing units, along with the units generating vegetable oil by adopting the solvent extraction technique as well as refineries comprising oil expelled units. Turnover of these units should be up to 12 lakhs to meet the eligibility requirements.

Various Storage Units

  • Storage units except for controlled atmospheric cold storage having turnover below the line of Rs 12 lakhs every year
  • Cold or refrigerated units having turnover not overstepping Rs 12 lakhs margin
  • Controlled atmospheric units having turnover up to Rs 12 lakhs annually

List of Other Businesses Include

  • Hotels
  • Restaurants
  • Wholesalers
  • Retailers
  • Mobile food vendors/Hawkers
  • Clubs
  • Canteens
  • Suppliers
  • Distributors
  • Marketers
  • Transporters
  • Food stalls and Dhaba
  • Dabbawalas and food stalls
  • Banquet halls and boarding houses
  • Petty retailers of tea stalls and snacks
  • Home-based canteens
  • Social as well as religious gatherings that satiate the hunger of needy ones
  • Fish/Meat seller
  • Other food vending establishments

The Relevance of Food License to conduct Food-Related Business

Those who are in the mood to enter into the food industry for the purpose of conducting business must obtain an FSSAI license as it has become mandatory for food-linked enterprises of all kinds. The need for FSSAI License varies as per the business type as well as an eligibility factor.

The FSSAI registration is a much-needed thing for all food businesses if they want to commence their journey in this sector. No food business is eligible to operate without a license. Under the FSS Act, FSSAI issue a license, which is a compulsory thing for all businesses to get that number printed on the packaging. Also, all restaurants, coupled with hotels, must demonstrate their license throughout the hours of working.

Submission of Documents for Petty Food Business Registration by FSSAI

In comparison to manufacturing units and food factories, a petty food business is like an infant. In quest of obtaining the license, petty food businesses have to submit a few documents. Submission of those documents that may help petty food businesses in getting a license are-

  • Owner’s photo identity
  • Rent Agreement or utility bill
  • Incorporation certificate/partnership deed
  • Manufactured food products list
  • Form B signed as well as passed through the completion process

Read our article:How to Get Hookah Lounge License in India? – Process & Fees

What are the Steps that Petty Food Business Owner needs to follow to obtain the FSSAI License?

Petty food business operators must follow the steps given below to obtain FSSAI license-

  • Initially, the applicant needs to submit form A in the office of the food and safety department.
  • The food and safety department has the power to accept or repudiate the application. Furthermore, the department conveys the acceptance message to the applicant in written form. The whole process gets completed in seven days.
  • In case of acceptance of the application, the food and safety department issues a certificate of registration.
  • Finally, the applicant gets the license post-completion of these steps.

Food License Exemptions

Many food business operators in India are free from the compulsory clauses of obtaining FSSAI registration. In addition to this, there is an exemption from FSSAI license and registration for petty retailers. Along with this, the exempted food business operators in India are-

  • Hawkers
  • Small scale food business operators
  • Temporary stallholders
  • Cottage food vendors
  • Tiny FBOs
  • Roving vendors
  • Other food businesses having turnover up to 12 lakhs

Penalties Imposed for FSS Act Violation

FSS Act has laid down certain guidelines and every food business must follow the rules prescribed under this Act. Food business operators in India must comply with these laws, or otherwise, they would have to pay the penalty.

  • Penalty for Carrying out a Food Business Unescorted by License

All FBOs, including petty food business operators, must get a license to conduct their business. Penalty for doing so without a license would lead to imprisonment up to 6 months and five lakhs Rs as fine.

  • Fine for Manufacturing and Processing Food in an Unsanitary Environment

Food business operators who processes or manufactures food in an unhygienic environment have to pay a fine of one lakh rupees.

  • Punishment for Selling Misbranded Food

Those FBOs who are selling food by adopting misbranding practices in any way are liable to pay a fine up to three lakh rupees.

  • Penance for Selling Food Items containing Extrinsic Matter

Those who are engaged in selling, distributing, storing, or importing foodstuffs containing external matter is liable to pay one lakh rupees fine.

  • Punishment for Selling food not Matching the Prescribed Nature and Quality

If a food business operator selling food, not as per the FSS Act demand of meeting the specified quality and nature, they have to pay fine not exceeding five lakh rupees and for the exempted class, the fine is up to twenty-five thousand rupees.

  • Punitive Action for Selling Sub-Standard Food

The punishment for selling substandard food can extend to the limit of five lakh rupees.

Summing Up

Petty food business in India is a charming business that has grabbed the attention of millions of people all across the globe. Food business operators must go for the FSSAI registration and rules and regulations prescribed by the FSS Act. Violation of the FSS Act would eventually impose penalties on the food business owners. We, at Corpbiz, would take you on the path of obtaining an FSSAI License.

Read our article:How to Obtain an FSSAI License in India: Full Guide

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