FSSAI Moves to Lifetime Validity of Food Licences for MSMEs; Major Compliance Relief Announced

Mumbai: In a significant regulatory shift aimed at improving ease of doing business, the Food Safety and Standards Authority of India (FSSAI) has announced that food licences and registrations for Micro, Small and Medium Enterprises (MSMEs) will now be valid for life, eliminating the need for periodic renewals.

The announcement was made by Dr. Alka Rao, Advisor (Science, Standards & Regulations), FSSAI, at the “Prerna” Women Empowerment Summit and the 6th Foundation Day of CASMB held in Mumbai. The move is expected to provide long-awaited relief to small food business operators who have historically faced recurring compliance requirements related to licence renewals.

According to officials, the decision forms part of a broader regulatory reform initiative focused on reducing compliance burden, simplifying procedures, and encouraging formalisation within the food business ecosystem. By removing the need for repeated renewals, FSSAI aims to allow MSMEs to focus more on business growth, product quality, and expansion rather than administrative processes.

Alongside this change, the authority has also introduced revised turnover thresholds aligned with business growth realities. Under the new framework, registration will apply to businesses with turnover up to ₹1.5 crore, state licences up to ₹50 crore, and central licences beyond that threshold. The reforms also include removal of dual compliance requirements, which is expected to benefit small traders and street food vendors by simplifying regulatory obligations.

FSSAI is also moving towards a risk-based inspection system, replacing routine inspections with a more targeted and transparent approach. This shift signals a move towards trust-based governance, where regulatory oversight is aligned with risk levels rather than uniform enforcement.

In addition, the authority has initiated several measures to improve engagement with startups and MSMEs. These include weekly interactive sessions for food business operators to resolve regulatory queries, a transparent and regularly updated approval tracking system for non-specified food products, and continued stakeholder consultations to ensure that policy changes remain responsive to industry needs. The approval of recycled PET (rPET) for food contact use was also highlighted as a step towards supporting sustainability goals within the sector.

The reforms are being implemented under the leadership of FSSAI Chief Executive Officer Rajit Punhani and Chairperson Punya Salila Srivastava, who also serves as Secretary in the Ministry of Health and Family Welfare. Industry observers view these changes as part of a broader shift in India’s regulatory framework, moving from compliance-heavy processes towards facilitative governance.

Participants at the Mumbai event, including MSME entrepreneurs and industry representatives, welcomed the announcement, noting that the removal of licence renewal requirements would significantly reduce administrative burdens and improve operational efficiency. The policy shift is expected to benefit lakhs of small food businesses across the country and strengthen the overall food safety ecosystem.

At the event, the FSSAI National Codex Contact Point was also conferred the CASMB National Award for its role in promoting regulatory awareness and supporting MSMEs.

The latest reforms are being seen as a decisive step towards improving ease of doing business in India’s food sector while maintaining regulatory oversight through a more efficient and modern framework.

Mumbai: In a significant regulatory shift aimed at improving ease of doing business, the Food Safety and Standards Authority of India (FSSAI) has announced that food licences and registrations for Micro, Small and Medium Enterprises (MSMEs) will now be valid for life, eliminating the need for periodic renewals.

The announcement was made by Dr. Alka Rao, Advisor (Science, Standards & Regulations), FSSAI, at the “Prerna” Women Empowerment Summit and the 6th Foundation Day of CASMB held in Mumbai. The move is expected to provide long-awaited relief to small food business operators who have historically faced recurring compliance requirements related to licence renewals.

According to officials, the decision forms part of a broader regulatory reform initiative focused on reducing compliance burden, simplifying procedures, and encouraging formalisation within the food business ecosystem. By removing the need for repeated renewals, FSSAI aims to allow MSMEs to focus more on business growth, product quality, and expansion rather than administrative processes.

Alongside this change, the authority has also introduced revised turnover thresholds aligned with business growth realities. Under the new framework, registration will apply to businesses with turnover up to ₹1.5 crore, state licences up to ₹50 crore, and central licences beyond that threshold. The reforms also include removal of dual compliance requirements, which is expected to benefit small traders and street food vendors by simplifying regulatory obligations.

FSSAI is also moving towards a risk-based inspection system, replacing routine inspections with a more targeted and transparent approach. This shift signals a move towards trust-based governance, where regulatory oversight is aligned with risk levels rather than uniform enforcement.

In addition, the authority has initiated several measures to improve engagement with startups and MSMEs. These include weekly interactive sessions for food business operators to resolve regulatory queries, a transparent and regularly updated approval tracking system for non-specified food products, and continued stakeholder consultations to ensure that policy changes remain responsive to industry needs. The approval of recycled PET (rPET) for food contact use was also highlighted as a step towards supporting sustainability goals within the sector.

The reforms are being implemented under the leadership of FSSAI Chief Executive Officer Rajit Punhani and Chairperson Punya Salila Srivastava, who also serves as Secretary in the Ministry of Health and Family Welfare. Industry observers view these changes as part of a broader shift in India’s regulatory framework, moving from compliance-heavy processes towards facilitative governance.

Participants at the Mumbai event, including MSME entrepreneurs and industry representatives, welcomed the announcement, noting that the removal of licence renewal requirements would significantly reduce administrative burdens and improve operational efficiency. The policy shift is expected to benefit lakhs of small food businesses across the country and strengthen the overall food safety ecosystem.

At the event, the FSSAI National Codex Contact Point was also conferred the CASMB National Award for its role in promoting regulatory awareness and supporting MSMEs.

The latest reforms are being seen as a decisive step towards improving ease of doing business in India’s food sector while maintaining regulatory oversight through a more efficient and modern framework.