Food safety compliance is a compulsory provision for all food business operators in India. Businesses are required to acquire an FSSAI State License or an FSSAI Central License, depending on the number and the type of businesses. The issue of what license to use in the business and what happens in case the wrong category is selected has kept many food entrepreneurs flustered.
This blog describes the distinction between FSSAI State License and Central License, their applicability, main characteristics and practical considerations to ensure that food business only stays in compliance with the Indian food laws.
Introduction
In India, the food safety standards are controlled by the Food Safety and Standards Authority (FSSAI). According to the Food Safety and Standards Act, 2006, no Food business operator is allowed to manufacture, process, store, distribute, or sell food without a valid FSSAI license or registration.
There are FSSAI licenses that are widely categorized as Basic Registration, State License and Central License. Although Basic Registration is used in very small businesses, State and Central Licenses have to be selected by medium and large-scale food businesses. This is because the difference between the two is very important, as one can be fined or punished in case he/she work under the wrong license.
What is an FSSAI State License?
The State Food Safety Department issues an FSSAI State License that is applicable to medium-sized food businesses operating in a specific state. It is aimed at companies whose operations, turnover, and capacity lie within the scope of those that are prescribed by FSSAI regulations.
The large businesses that are in this bracket include the mid-sized manufacturers, processors, storage facilities, transporters, hotels, restaurants and distributors, although their annual turnover must not surpass the limit that is required of a Central License.
The State License is used to guarantee that the food businesses are subject to state-level regulatory control and their compliance with the nationwide food safety standards as well.
What Does an FSSAI Central License Mean?
FSSAI issues its Central License, which is not compulsory but required for large food enterprises or those running at the national or global scale. The license is mandatory for businesses that deal with the import or export of food, large-scale manufacturing facilities, and those that deal with several states.
Central License is also to be acquired by businesses that have a high turnover per year or manufacture large volumes. The Central License is a product of the larger size and greater regulation involved in such operations.
Key Differences Between FSSAI State License and FSSAI Central License
1. The applicability is based on Operation and Turnover
The major difference between a State and Central License is the level of activity. A State License is usually needed by businesses that work in one state and have medium turnover. Conversely, companies that conduct operations in more than one state or are engaged in imports or exports or mass production are required to take out a Central License.
Turnover thresholds are very instrumental in deciding the kind of license. In case a business exceeds the turnover required by a State License, the business has to upgrade to a Central License in order to stay within the requirements.
2. A geographical Area of operation
An FSSAI State License limits the operations to a state. Although a business might have a number of outlets in the same state with one license, to have operations outside the state, a Central License is required.
A Central License is given to a food business that can operate in more than one state and trade interstate, which is necessary for national-level food operators.
3. Authority Issuing the License
The State License is conferred by the State Food Safety Authority, but those conferred by the Food Safety and Standards Authority of India are the Central License.
The difference also has an implication on the inspection processes, compliance and regulatory supervision.
4. Inspection and compliance requirements
State licensing officers inspect state-licensed businesses, and central officers inspect centrally licensed businesses.
The cost of compliance in a Central License is usually higher because of the size of the operations and the activities involved.
5. Validity and Renewal
This is because both State and Central Licenses are available with a period of validity of one to five years. Before the expiry date, renewal should be made, or one will suffer penalties or cancellation.
The use of an expired license is considered a grave offence in the Food Safety Act.
6. Consequences of Choosing the Wrong License
Such a wrong choice of the type of license may be critically followed by fines, the necessity to stop working, or even the loss of the license. In other instances, companies might be forced to do a fresh application, and this causes time wastage and cost.
Thus, turnover, scale, and nature of operations should be evaluated and considered beforehand, prior to application.
7. Practical Guidance for Food Businesses
The turnover and expansion plans should be reviewed frequently by the food business operators. In the event that the business expands in a manner that extends beyond a State License, then it is required to migrate to a Central License in good time.
Correct records and keeping up with the FSSAI regulations can prevent non-compliance and even legal issues in businesses.
Conclusion
The distinction between an FSSAI State License and an FSSAI Central License is the magnitude of the food business, its scope, and its nature. Whereas a State License serves medium-sized companies that are over a state, a Central License is compulsory for big and multi-state food vendors. Knowledge of these differences will provide regulatory adherence and an easy business process. By selecting the appropriate license at the onset, the penalties are avoided, and additionally, credibility and trust in the food business are established.
