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Economic Insight > Blog > Business News > FSSAI floats consultation paper on making state or central licensing mandatory for certain products
FSSAI floats consultation paper on making state or central licensing mandatory for certain products
Business News

FSSAI floats consultation paper on making state or central licensing mandatory for certain products

EC Team
Last updated: May 2, 2025 8:02 pm
EC Team
Published May 2, 2025
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The Food Safety Standards Authority (FSSAI) of India has raised a consultation form suggesting that permissions for the manufacture of certain products be restricted to food business operators who only hold state and central licenses. These products include infant food, condensed milk, packaged drinking water, mineral water and milk powder. Authorities are seeking comment from stakeholders on the same.

Currently, food business operators who manufacture these products must obtain either FSSAI registration or licenses based on their eligibility.

Previously, besides FSSAI registration or license, a manufacturer of products such as infant nutrition, packaged alcohol, mineral water, and condensed skim milk was required to obtain compulsory certification from the Indian Standards Agency. However, in 2024, the government decided to remove the mandatory BIS certification requirements as part of its efforts to facilitate the measures.

To strengthen the compliance ecosystem, FSSAI currently suggests that existing registered companies creating these products need to be migrated to mandatory licenses. It also suggests that new players seeking to manufacture these high-risk products will need to obtain a state or central license to manufacture these products. Therefore, we propose to restrict companies that hold FSSAI registrations from having permission to create these products.

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Authorities noted that obtaining registrations requires less compliance obligations compared to licenses. Food businesses that have obtained FSSAI registration do not need to forcefully submit test reports for product analysis. Unlike license holders, it is not required that FBOS submit annual returns with registrations. Qualified engineers oversee the production process and conduct third-party audits. They must adhere to very basic hygiene and hygiene standards compared to licensed FBOs. “In addition, registered FBOs may lack technical, financial and infrastructure capabilities to ensure safe production, particularly due to technically demanding products such as infant food and packaged drinking water,” FSSAI said in its consultation paper.

“To further strengthen the compliance ecosystem, it is proposed that the production of certain products does not allow new registrations and renewals of existing registrations. Only state or central licenses are permitted.”

Officials said special drives will be implemented to convert existing registered FBOs into license categories. He also said that a transition period of about six months will be given to allow FBO to shift to the licensing category. According to its estimates there are over 11,000 food business operators who manufacture such products and hold FSSAI registrations.

Released on May 2, 2025

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