Who is exempted from FSSAI registration?

Publishing Date: 18 Nov, 2024


Overview 

India is one of the huge markets for food related-business where food safety and hygienic checks are essential to save consumers from foodborne illness. FSSAI ( Food Safety and Standards Authority of India) authority is responsible to set standards for food businesses that help to safeguard public health in India. However, it is mandatory that every food-related business must obtain FSSAI License to operate their business to ensure that the food products meet all the safety standards before reaching to the consumers. 

FSSAI recognizes that not every food business is the same and that some operate on a smaller scale or involve minimal risk. Therefore, certain businesses are exempt from FSSAI registration, reducing their regulatory burden. In this blog we will get the complete understanding over the FSSAI exemptions.

Types of Business Exempted from FSSAI Registration 

1) Small-Scale home based Food Related business 

Any home-bakers, home-kitchen and small-scale caterers who serve their local community without exceeding the turnover of ₹12 lakhs annually are exempted from the FSSAI Registration. Home-baked goods, small meal services, snack businesses are some examples of this. 

2) Primary Agricultural producers 

Any Farmer who produces raw material such as fruits, vegetables or grain is known as the primary agricultural producer. These agricultural products that haven’t undergone processing aren't required to get FSSAI Licence. 

Nearly 42% of India's workforce is in agriculture where these exemptions help farmers to focus on their core activity or cultivation and distribution. 

3) Petty Retailers and Small Vendors 

Any street vendor who operates locally known as petty retailers and small vendors such as small tea stalls, street food carts and local grocery shops. These vendors help to maintain the food-related items accessibility especially in densely populated urban areas. As per a recent survey there are approx 11 million street vendors in India. They have a low annual turnover and are exempted from getting FSSAI License. This exemption helps to maintain the food supply chain at reasonable prices.

4) Food Handlers for Religious or Charitable Organizations 

If any religious or charitable organizations offer food without any profit and charge are exempted from FSSAI Registration. Temples, community kitchens and shelters are some of these examples. These organizations mainly rely on donations and volunteers where this exemption helps to focus on their social missions without regulatory obligations. 

5) Low-Risk Food Handlers and Vendors 

Some categories that come on low-risk foods such as dry snacks and unprocessed food items are exempted from FSSAI License. 

How FSSAI Exemptions Benefits Small Business 

FSSAI exemptions reduce the compliance burden for small entrepreneurs, farmers, and local vendors, making it easier for them to enter the food market. This approach connected with the Atmanirbhar Bharat initiative, aims to empower small businesses and enhance local production without any regulatory obstacles. 

Note: This FSSAI Registration exemption does not mean exemption from the basic food safety standard or practices. Even these exempted categories must follow the hygienic and safety standards to protect consumers' health. If these exempted categories do not follow these safety practices may face potential legal issues.

Conclusion 

Exemptions from obtaining FSSAI License or registration are vital for supporting India's diverse food sector especially small businesses and charitable organizations who operate with limited financial support and resources. If you are a small business owner or individual understanding these exemptions is crucial that helps to save your time, cost and also aids you to focus on your core operations. But remember, setting and prioritizing the safety and quality standing is essential. 

Frequently Asked Questions 

1) Is FSSAI registration mandatory?
The FSSAI registration is mandatory for all food businesses, to comply with legal requirements.

2) Can I operate without an FSSAI registration?
Penalties and legal problems may arise from operating without FSSAI registration. Compliance with food safety regulations and consumer trust depend on it.

3) How long does it take to get FSSAI registration?
Basically the complete FSSAI Registration takes 7-10 days, depending on the application process.

4) Can I upgrade my FSSAI license if my business grows?
Yes, you can upgrade from Basic to State or Central license as your business expands and turnover increases.

5) Does FSSAI registration expire?
Yes, FSSAI registration must be renewed regularly, typically every 1-5 years, depending on the initial application.

About the Author

CA Nayani Agarwal linkedin

All India Rank - 24

Nayani Agarwal is a Chartered Accounting who scored All India rank - 24 & 22 in CA final and CA intermediate respectively. She also scored an India rank - 21 in the Company Secretary foundation. She has overall 10 plus experience in banking and financial services. Her areas of expertise is startup consultancy, ESOP, Income Tax, GST, corporate Compliances & import expeort consultancy.