RUNNING A FOOD BUSINESS? HERE’S WHAT CHANGED UNDER FSSAI RULES IN 2026

1. What Are the New FSSAI Rules from April 2026?

The major changes introduced in 2026 include:

• Higher turnover limits: Small food businesses can qualify for basic registration at a higher annual turnover.
• Perpetual licence validity: FSSAI registrations and licences no longer require routine periodic renewal under the revised framework.
• Relief for eligible street food vendors: Certain vendors already registered under the street vending law are treated as registered under FSSAI.
• Risk-based inspections: Food safety checks can focus more on the level of risk associated with a business.

2. New FSSAI Registration and Licence Limits

One of the biggest changes is the increase in the turnover limit for basic FSSAI registration. Previously, the general basic registration limit was up to ₹12 lakh in annual turnover. Under the revised rules effective April 1, 2026, the turnover limits are as follows:

What Does This Mean for Food Businesses?

• Small businesses: A small bakery, home-based food business or local food shop may qualify for basic registration instead of a State licence.
• Medium-sized businesses: Businesses with turnover above ₹1.5 crore and up to ₹50 crore generally fall under the State licence category.
• Large businesses: Businesses with turnover above ₹50 crore generally fall under the Central licence category.

For example, if a small food business earns ₹50 lakh annually, it may qualify for basic registration under the revised turnover limits, provided it meets the other applicable conditions. This change can help eligible small businesses save time, reduce paperwork and manage compliance more easily.

3. FSSAI Registrations and Licences Now Have Perpetual Validity

Another important change is the introduction of perpetual validity for FSSAI registrations and licences. Earlier, food businesses had to renew their registrations or licences periodically. Under the revised framework, routine periodic renewal is no longer required.

How Does This Help Businesses?

• Business owners do not have to follow the earlier routine renewal process.
• Paperwork related to repeated renewals is reduced.
• Businesses can save time and reduce administrative work.
• Owners can focus more on their daily business operations.

However, perpetual validity does not mean that a licence can never be cancelled. It can still be suspended, cancelled or surrendered as permitted by the rules. Businesses must also continue to follow hygiene standards, food safety requirements and other applicable legal obligations.

4. New Relief for Street Food Vendors

Street food vendors are an important part of India’s food industry. They include food cart owners, hawkers, street food sellers and other eligible small vendors. Earlier, some vendors had to deal with registration requirements under different systems. Under the new rules, street food vendors registered with Municipal Corporations or Town Vending Committees under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014, are treated as registered under FSSAI.

What Are the Benefits?

• Less duplicate paperwork.
• Reduced registration-related difficulties.
• More time to focus on running the business.
• Easier compliance for eligible vendors.

5. Food Safety Inspections Will Focus on Risk

 Additional FSSAI Compliance Update: June 2026

• Food businesses should also be aware of the subsequent amendment notified in June 2026, which rationalised certain record-keeping and stock-rotation requirements.
• Under the amended provisions, the requirement to maintain daily records of production and raw material utilisation applies to food manufacturing businesses and does not apply to non-manufacturing food businesses. The specified First In, First Out (FIFO) and First Expiry, First Out (FEFO) stock-rotation requirement also excludes retailers under the amended provision.
• This is an important distinction for businesses that manufacture food compared with those that only retail or distribute it. Businesses should read the applicable licence conditions and hygiene requirements carefully before deciding which obligations apply to them.

What Should Food Business Owners Do Now?

Food business owners should take the following steps to understand their responsibilities under the new rules.

 What Happens If a Business Does Not Follow FSSAI Rules?

Food businesses must follow the FSSAI requirements that apply to their activities. If a business operates without the required registration or licence, ignores hygiene rules or violates other food safety requirements, authorities may take action under the applicable law. Depending on the violation, this may include penalties, suspension or cancellation of a licence, or other legal consequences. Therefore, business owners should understand their obligations instead of assuming that the new rules remove all compliance requirements.

Frequently Asked Questions (FAQs)

Conclusion

Understanding FSSAI registration and licensing can be confusing for food business owners. CorpBuddy, Raipur, helps you understand the applicable requirements and guides you through the compliance process. Whether you run a restaurant, bakery, cloud kitchen, grocery shop or food manufacturing business, contact CorpBuddy, Raipur for assistance with FSSAI registration, licensing and other business compliance requirements.