The arrival of the COVID-19 pandemic made people stop eating from restaurants and dhabas for their safety. The restaurant sector was one of the hardest-hit industries with a sharp fall in the FSSAI license for restaurants. There has been a 53% decrease in the number of restaurants in FY2021 as compared to the previous fiscal.
There was a huge impact of the Covi-19 on the restaurant business as there were restaurants shutting down permanently, Loss of jobs, a decrease in revenue from the food sector, etc. The average profit of the business fell by almost 88 percent and the Indian food market shrank to Rs 200,762 crore from that of Rs 423,624 crore in FY2020. f
What is an FSSAI?
FSSAI or Food Safety and Standards Authority of India, an organization that monitors and governs food-related business in India. The FSSAI and FoSCos govern on the basis of the Food Safety and Standards Act, 2006 (FSS Act) the looks into rules and regulations related to food safety and regulation in India.
The role of the FSSAI and FoSCos is to look after the food-related issues and make sure that the food products undergo quality checks. This helps curb the food adulteration and sale of sub-standard products. Its responsibilities are to help in the registration and licensing of Food Business Operators (FBO) in India. It also takes care of FSSAI restaurant guidelines before granting a license.
How to apply for an FSSAI License registration?
An FSSAI registration/license is an essential part of any food-related business in India. FSSAI Licence is a 14-digit-number that is given by the concerned authorities for the sale of food. There are different types of licenses based on the scale of the operation and the way the business is carried out. The three types of License are:
FSSAI Basic Registration – This is for small businesses that have a turnover of less than 12 lakh rupees. The turnover is calculated on a yearly basis.
FSSAI State License – This is for businesses with a turnover of 12 lakh rupees to 20 crore rupees in a year.
FSSAI Central License – This is for businesses that have a turnover of more than 20 crore rupees and deal in import/export.
There are a few straightforward steps that one can follow to get their FSSAI License registration done. They are:
- The person applying for the registration of FSSAI License registration has to fill a form for the application to be filed and make the required payment for the same.
- The expert of the FSSAI License registration process will call the individual after the payment is done. They will make arrangements for the required documents for the registration process to begin.
- The person has to then upload all the necessary documents related to the food business.
- The application is then filed along with the documents to the concerned authorities who will make the necessary arrangements.
- After the application is done there is an inspection carried out to make sure the compliance policy is met
- On a satisfactory review of the inspection officer, the individual is issued with the FSSAI registration online.
The fees structure of the registration for an FSSAI license varies according to the structure of the business and the extent of the operation. The fees details are:
|FSSAI FoSCos Basic License||Income less than 12 lakhs||1 To 5 Years||Rs. 1999/- *, #(for the 1st year only)No Hidden Charge|
|FSSAI FoSCos State License||Income between 12 lakhs to 20 crores||1 To 5 Years||Rs. 2999/- **, #One TimeNo Hidden Charge|
|FSSAI FoSCos Central License||Income above 20 crores or E-commerce business or Business across all over India||1 To 5 Years||Rs. 3999/- **, #One TimeNo Hidden Charge|
*– Including Govt Fees, **– Excludes Govt Fees, # Excluding GST.
Benefits of FSSAI License
With the food business already decreasing and the occurrence of the Covid-19 has made the necessity of cleanliness, sanitized space a compulsory measure. All businesses need to cater to the rules and regulations to continue their business. Thus having an FSSAI license will not only provide a boost to the business but also provide proof of compliance to the customers. It can provide legal benefits, goodwill, ensure food safety, boost business expansion and create awareness for the customers.
The FSSAI License registration has seen a drastic fall in the number of restaurants. There have been more and more food businesses shutting down due to lack of business and huge losses. The presence of an FSSAI license helps maintain the business by showing compliance with safety and standard regulations. FSSAI License not only helps build the reputation but also helps the business grow in times when the graph is going downwards.