For any owner of a food business to carry out his/her business operations, he/she must obtain the FSSAI license from the respective state authority. One must obtain the license if the food business’ annual turnover exceeds Rs. 12 lakhs and is less than Rs. 20 crores. Depending on the size of the manufacturing unit, it can produce as much as 2 million tonnes of goods a day, dairy units can produce as much as 50000 liters of milk each day, hotels with three star ratings and above, clubs, repackers and relabeling facilities, canteens, etc. All catering businesses, regardless of how much they do business, are required to apply for state approval regardless of their turnover. Let us now take a look at how and when they need to obtain a state certificate from the FSSAI. This license is valid for a period of 5 years, and a minimum of 1 year.
State FSSAI license benefits
- As a result of the advancement of technology, consumers have become increasingly aware of food quality and hygiene standards as well as their safety. Generally, consumers prefer to purchase food from outside that is compliant with the Food Safety and Standards Act (FSSAI). In this way, they are provided with more assurance as to whether the product is free from contamination, artificial flavouring, etc. Further, this serves as a fair way for the customer to ask if there is a problem with the product offered to them. Obtaining a food license therefore offers you a direct advantage in growing the customer base at a rapid pace even if there is a possibility of poor food quality among sellers with a food license. You are therefore able to become more attractive to the customer by obtaining a food license.
- A Food License is a difficult process that, if you are not careful, can lead to many difficulties. The problem is that most people believe that it would be a very time-consuming process with lots of paperwork and unnecessary paperwork. Additionally, there is the myth that to obtain a food license, you need to spend a lot of money. The fact is, it is a huge loss for a new business to get a food license. On the other hand, the truth is quite different. If you do not have a food license, you may be subjected to a hefty penalty if you do business without a license. Food licenses can be easily obtained without much hassle and for a reasonable fee.
- If you have a food license, you can display it on your menu card, packing bags, pamphlets, etc. The FSSAI only provides licenses for businesses that adhere to the highest standards of hygiene. With an FSSAI logo on your product, you are providing superior quality over your competitors. Customers are more confident about food quality since FSSAI licenses contain a valid FSSAI number. Nowadays, customers only buy food items that have a FSSAI logo and number. As a result, there is a very large increase in customer numbers.
- Businesses that start up are eager to expand their business to new markets or customers. However, setting up a new business at a new location should make the customer feel confident about purchasing the new product. Expanding your company to new regions or opening new outlets is much easier when you have a valid food license. By giving the individual or bank offering the loan a sense of trust, it will be easier to get the loan or other financing needed to grow the company.
Checklist Eligibility for FSSAI state license
There is a license requirement for FBOs that are not classified as small food businesses, as well as a requirement for the profits and the amount of production they are capable of producing each year.
Apply for fssai license – The FSSAI state license is available to FBOs if they meet the following criteria:
- Units designed for handling or treating milk more than 500 to 50,000 liters per day. These units produce 2.5 to 2,500 million tons per year of milk solids.
- Refineries, including vegetable oil presses and solvent extraction units, are producing up to 2 million tons of vegetable oil every day or earning Rs 12 lakh or more per year.
- A slaughter unit that can process more than two large animals and up to 50 small animals. A slaughter unit that can process more than 10 birds and up to 150 small birds.
- Plants capable of processing 150 MT of meat per year, or 500 kg per day.
- The whole range of food processing units, including those repacking and relabeling products with a capacity of more than 100kg per liter and up to 2 million tons per day, including grain, cereal, and pulse units.
- Those who own or operate storage businesses with loads between 500 and 50,000 million tons, with the exception of those who have controlled environments or cold storage;
- A cold and refrigerated storage facility must have more than 10,000 million tons of capacity, and a cold and controlled atmosphere facility must have more than 10,000 million tons of capacity as well.
- The target audience for the programme is wholesalers with annual turnovers of at least 30 crores. Vendors, distributors, suppliers, and catering companies with annual turnovers of at least 20 crores.
- Those who own businesses selling food, such as Dhabas and clubs and canteens with annual turnovers exceeding 12 lakhs.
- Restaurants with a turnover up to 20 crores of rupees. Hotels with a minimum rating of 3 stars and below 5 stars.
- An annual turnover of at least 20 crores for marketers. A turnover of at least 100 vehicles or wagons for transporters.