What is Petty Food Business? And How to Start in India?

In recent times the petty food industries are growing with a rapid flow and the demand for the same is ever increasing. The Food Safety and Standard Authority of India (FSSAI) is a regulating authority that ensures the safety of food served by all the food businesses including petty food business. This article will help you to understand what petty food business is and how to start it in India?

All the food business operators who are engaged in the petty food business are required to follow all the rules and guidelines to ensure safe and standard food products as prescribed by FSSAI.

What is Petty Food Business and How to Start in India?

Petty Food Business is a business in which a person manufactures and self the food products by himself and the annual turnover of such petty food businesses is less than Rs. 12 lakh per annum. These types of food business operators are the most widespread and prevailing source of snacks, food etc.

Types of Petty Food Businesses

There are several types of petty food businesses. These are explained as below: –

Manufacturers

• Dairy units which include the chilling units connected with handling or processing: the units managing up to 2.5 metric ton of milk solids per year or 500 litres of milk per day.
• The solvent extraction and refineries comprising oil expelled units method used for the purpose of units producing vegetable oil and vegetable oil processing units. The eligibility of all these units is a turnover up to Rs. 12 lakhs.
• Meat processing units having a turnover up to Rs. 12 lakhs.
• Re-labelers and Re-packers under the food processing units: whose turnover is up to Rs. 12 lakhs and deals with the food capacity of 100 liters or 100 kg.
• Slaughtering units trading in 50 poultry birds, 10 small animals and 2 large animals per day

Storage units

• Storage units except for the controlled atmosphere units and cold having turnover, not above Rs. 12 lakhs.
• Controlled atmosphere units whose turnover is up to Rs. 12 lakhs.
• Refrigerated or cold units whose turnover is up to Rs. 12 lakhs.

Other Businesses

• Wholesalers
• Retailers
• Distributors
• Suppliers
• Canteens
• clubs
• Restaurants
• Hotels
• Marketers
• Transporters
• Hawkers/Mobile food vendors
• Petty retailers of snacks and tea stalls
• Dhaba and food stalls
• Home-based canteens
• Boarding houses
• Banquet halls
• Religious and social gatherings who are engaged in distributing food and other food vending establishments.
• Temporary and permanent stall holders.
• Food stalls
• Meat/Fish seller

Is food license mandatory for petty food businesses?

It is mandatory for all types of food business operators to register itself under the Food Safety and Standard Act. Without obtaining the license no food business is allowed to operate. And it is necessary for all the FBO’s including the restaurants and hotels to display their license during the working hours.

Why do petty food business operators need a food license?

All the food business operators (FBO) are required to obtain a food license under the Food Safety and Standard Act in order to carry out any food-related business. The obtaining of a license depends upon the type of business that an FBO is engaged in.

There are three types of licenses which can be obtained by an FBO depending upon the type of business: –

· FSSAI Registration

The petty food businesses register under the FSSAI License. The annual Turnover of such petty food businesses is less than twelve lakh

· FSSAI State License

All the medium size food businesses obtain FSSAI State License. The annual turnover of such mid-size businesses is more twelve lakh.

· FSSAI Central License

All the large scale food business obtains FSSAI Central License. The annual turnover of such is more than twenty crores.

It is much clear that the petty food business registers itself under the FSSAI Registration.

Documents required for Petty Food Businesses to Register itself under FSSAI?

The documents that the petty food business operator require to submit for registration is comparatively less than the other food business operators as the petty food businesses are relatively smaller than others. The documents that are needs to be submitted are: –

• Photograph id of the owner
• Utility Bill/Rent Agreement
• Partnership Deed
• List of all the food products that are manufactured
• Form B completed and signed

Also, Read: Everything a Restaurant Owner Should Know: Food Safety & Standard Act

Steps to obtain Food License by Petty Food Business

The petty food business operator must follow the below mentioned steps to obtain a food license for their business: –

• The applicant has to submit an application in Form A to the Food and Safety Department.
• The Food and Safety Department can either accept or reject the application and shall also inform the applicant about it in writing. This entire process takes 7 days to complete.
• A registration certificate is issued by the Food and Safety department if the application is accepted.
• Once all these steps are completed the applicant receives the license.

Exemptions of food license

There are certain food business operators who are exempted to obtain a food license in India like Petty Retailers. Along with this, the other FBO’S exempted to obtain a food license are-

• Small scale food business operators
• Itinerant vendors
• Cottage food seller
• Temporary stallholders
• Tiny food business operators
• Hawkers
• Other food businesses whose turnover is less than 12 lakhs.

What are the Penalties for the violation of FSSAI in India?

Certain rules and guidelines have been set out by the FSSAI which is mandatory for a food business operator to follow. If any FBO does not function in accordance with rules specified under the act, it shall be liable to punishment or penalty such as: –

Penalty for operating a Food Business without the License

It is mandatory for a food business operator to obtain a license in order to carry out his/her business. On failing to do so, the penalty shall be imprisonment up to six months and fine up to five lakhs.

Fine for not selling Food under the prescribed standard, quality, substance or nature etc.

The food business operators who do not meet with the prescribed standards for selling food products under the FSSAI are liable to fine not more than Rs. Five lakhs and for the exempted category the fine is up to Rs. Twenty-five thousand.

Substandard food punishment

The punishment for selling substandard food can extend to Rs. Five lakhs.

Punishment for misbranded food

The punishment for selling misbranded food is liable for a fine up to Rs. three lakhs.

Punishment for selling food containing extraneous matter

A food business operator who sells, distribute, store or import food products containing extraneous matter shall be liable with a fine up to Rs. one lakh.

Punishment for processing or manufacturing food in unhygienic conditions

Punishment for processing or manufacturing food in unhygienic conditions is liable for a fine up to Rs. one lakh.

Conclusion

The petty food business in India is the most important prevailing section in the food business and the day to day food requirements are fulfilled by them. It is important for the petty food business operator to know how to start its business in India. All the rules must be followed in accordance with the Food Safety and Standard Act of India^[1] and it is mandatory for all types of FBO’S including the petty food businesses to register itself under FSSAI.

Also, Read: What are the Licenses Required to Start a Food Van in India?