FSSAI Raises Turnover Limits for Food Business Registration and Licensing

By Apalka Bareja and Aishwarya Rajput

Introduction

The Food Safety and Standards Authority of India (FSSAI) has revised the annual turnover thresholds that determine which category of registration or licence a Food Business Operator (FBO) must obtain. The change is effected through two instruments: the Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026, notified via gazette on 10th March, 2026[1] (the “Amendment Regulations”), and a subsequent implementation order dated 13th March, 2026[2] (the “Order”) issued by FSSAI directing all licensing authorities to apply the revised thresholds with effect from 1st April, 2026.

The revision follows recommendations of NITI Aayog’s High-Level Committee on Non-Financial Regulatory Reforms, constituted to identify and reduce the non-financial regulatory burden on Indian businesses. The Committee specifically recommended raising FSSAI thresholds to cut unnecessary compliance overhead for micro, small, and medium enterprises in the food sector and to bring the thresholds in line with current economic realities.

Revised Turnover Thresholds at a Glance

Key Takeaways for FBOs

• Effective Date — Act Before 1st April, 2026: The revised thresholds come into force on 1st April, 2026. FBOs whose annual turnover now places them in a different category should assess their registration status promptly to ensure compliance from day one of the new regime.
• Significantly Reduced Compliance for Small Businesses: By raising the Basic Registration ceiling from ₹12 Lakh to ₹1.5 Crore, a large number of street vendors, home-based food businesses, and small eateries who previously required a State Licence will now qualify for the simpler, cheaper Basic Registration process, with lower annual fees and significantly fewer documentation requirements.
• Regulatory Focus Sharpened on Large-Scale Operations: The Central Licence threshold raised from ₹20 Crore to ₹50 Crore allows FSSAI to concentrate its highest-level oversight on large-scale manufacturers, importers, and national-level operators. Businesses below ₹50 Crore will now be regulated at the State level, potentially enabling faster local grievance redressal and more responsive regulation.
• Ease of Doing Business: This revision is a direct outcome of NITI Aayog’s regulatory reform agenda and reflects a broader government intent to reduce friction for food businesses. Aligning thresholds with present-day economic realities is expected to unlock growth for thousands of FBOs that had been caught in a compliance grey area.

Steps to be Undertaken by FBOs

With the revised thresholds effective from 1st April, 2026, FBOs should take the following steps to determine whether a change in their registration or licence category is required:

• Determine Applicable Turnover Category: FBOs should ascertain their annual turnover for the most recent financial year and map it against the revised thresholds.
• Modification of the Existing License upon Upgrade: An FBO whose annual turnover has exceeded the threshold applicable to its current licence category is required to apply for an upgrade by filing a modification application on the Food Safety Compliance System (FoSCoS) portal at https://foscos.fssai.gov.in.
• Surrender the Existing Licence if Downgrading: Where an FBO is eligible to move to a lower category (e.g., from a State Licence to Basic Registration), it should apply for cancellation or surrender of the existing licence simultaneously with the fresh registration application. FBOs should retain a copy of their existing licence and acknowledgement of surrender for their records.
• Update Business Records and Labelling: Upon receipt of a fresh registration certificate or updated licence, FBOs must update their FSSAI registration or licence number on all product labels, packaging, invoices, and statutory records. Labels bearing an outdated category reference should be phased out promptly to avoid any labelling non-compliance.

Conclusion

The FSSAI’s revised turnover thresholds represent a meaningful regulatory recalibration, particularly for India’s vast informal food economy. By significantly raising the Basic Registration ceiling, the move is expected to bring thousands of small FBOs, including street vendors, home kitchens, and micro-enterprises into a simpler, more accessible compliance framework, reducing both cost and administrative burden.

Several open questions remain. FSSAI is yet to clarify the exact process and timeline for existing licensees who need to change categories, and whether any grace period will be provided beyond 1st April, 2026. Sector-specific carve-outs, if any, are also yet to be announced. FBOs and their advisors should monitor FSSAI’s official channels for further implementation guidance in the weeks ahead.

References-

[1] FSSAI Implementation Order dated 13th March, 2026 (Revised Turnover Threshold) — View Order

[2] FSS (Licensing and Registration of Food Businesses) Amendment Regulations, 2026, Gazette Notification dated 10th March, 2026 — View Gazette Notification