CORPORATE COMPLIANCE

Everything You Need to Know About the FSSAI License

By Corporate Direct Team - 25-minute read

CS Rajapandian

Practising Company Secretary

An FSSAI (Food Safety and Standards Authority of India) license is necessary for several crucial reasons, all aimed at ensuring the safety and quality of food for consumers and regulating the food industry effectively in India, including Chennai, Tamil Nadu. Here are the key reasons why an FSSAI license is mandatory:

Legal Compliance

  • Mandated by Law:

    An FSSAI (Food Safety and Standards Authority of India) license is necessary for several crucial reasons, all aimed at ensuring the safety and quality of food for consumers and regulating the food industry effectively in India, including Chennai, Tamil Nadu. Here are the key reasons why an FSSAI license is mandatory:

Ensuring Food Safety and Public Health

  • Protecting Consumers:

    The primary purpose of the FSSAI license is to ensure that food businesses adhere to the safety and hygiene standards prescribed by the FSSAI. This safeguards consumers from consuming unsafe, adulterated, or substandard food products that could lead to health issues.

    Setting Standards:

    FSSAI establishes scientific standards for food products and regulates their manufacture, storage, distribution, sale, and import to ensure food safety. Obtaining a license means committing to these standards.

Maintaining Quality Standards

  • Defining Benchmarks:

    Beyond safety, FSSAI also sets quality standards for various food products. Compliance with these standards ensures that consumers receive food that meets certain quality benchmarks.

Building Consumer Trust and Brand Reputation

  • Sign of Reliability:

    An FSSAI license acts as a mark of authenticity and reliability for food businesses. Consumers are more likely to trust and purchase from businesses that are licensed, as it indicates adherence to food safety regulations.

  • Enhancing Credibility:

    Displaying the FSSAI license number on products and premises enhances the credibility of the food business.

Facilitating Business Growth and Opportunities

  • Access to Markets:

    Many retailers, distributors, and e-commerce platforms prefer to work with FBOs that have a valid FSSAI license.

  • Government Contracts and Tenders:

    For businesses looking to supply food to government institutions or participate in tenders, an FSSAI license is often a prerequisite.

  • Export Opportunities:

    For businesses involved in exporting food products, an FSSAI license is essential as it demonstrates compliance with international food safety standards.

  • Loan Approvals:

    Financial institutions may also require an FSSAI license when considering loan applications from food businesses.

Ensuring Traceability and Accountability

  • Tracking Food Products:

    The 14-digit license number allows for the traceability of food products back to the manufacturer or seller. This is crucial in case of any food safety issues or recalls.

  • Establishing Accountability:

    The licensing system establishes accountability for food safety and quality at every stage of the food supply chain.

Promoting a Regulated and Organized Food Sector

  • Streamlining Operations:

    The FSSAI licensing process helps in organizing the food sector by bringing all food businesses under a regulatory framework.

  • Facilitating Inspections and Audits:

    The licensing system allows FSSAI authorities to conduct regular inspections and audits to ensure compliance and address any potential food safety concerns.