The Food Safety and Standards Authority of India (FSSAI) has amended its licensing and registration regulations to ease compliance requirements for non-manufacturing food businesses, a move that industry stakeholders say will reduce administrative burden while maintaining food safety standards.
Under the revised norms, grocery stores, retailers, wholesalers and distributors engaged solely in the sale of food products will no longer be required to maintain daily inventory records under the First In, First Out (FIFO) or First Expiry, First Out (FEFO) systems, provided they are not involved in food manufacturing or processing.
To formalise the exemption, FSSAI has inserted a new provision in Schedule 2 of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011, clarifying that the requirement to maintain daily stock registers does not apply to non-manufacturing food businesses. The regulator has also amended Regulation 5.2.5 under Schedule 4 to exempt retailers from FIFO and FEFO storage requirements.
FSSAI said the amendments are aimed at improving the ease of doing business by eliminating unnecessary compliance obligations without compromising food safety.
Industry representatives welcomed the move, describing it as a practical distinction between traders and manufacturers.
Shankar Thakkar, National President of the All India Edible Oil Traders Federation and National Secretary of the Confederation of All India Traders (CAIT), said the exemption would significantly reduce the compliance burden on retailers while ensuring that manufacturers continue to maintain detailed production and batch records.
He noted that the latest amendments build on earlier reforms introduced by FSSAI, including lifetime validity of food licences under prescribed conditions, higher turnover thresholds for basic registration and the removal of duplicate regulatory requirements for street vendors.
Food industry executives said the simplification of procedural requirements would allow businesses to focus more on product quality and operational efficiency.
Puneet Davar, Chief Executive Officer and Managing Director of Tropolite, said regulatory compliance should be viewed as the baseline, with businesses using the time and resources saved to invest in product innovation, traceability, responsible sourcing, hygiene and customer experience.
Neeraj Seth, Co-Founder and Managing Director of Trufrost & Butler, said the changes ease documentation requirements but do not alter the core principles of food safety.
He said hygiene, temperature control, traceability and employee training remain essential, adding that businesses could now redirect operational resources towards process optimisation and service improvements.
Legal experts also supported the amendments while emphasising that food businesses remain fully accountable under the law.
Sonam Chandwani, Managing Partner at KS Legal & Associates, said the reforms appropriately distinguish between traders and manufacturers, reducing unnecessary compliance costs for businesses that do not control production processes.
However, she stressed that the exemption does not dilute legal obligations under the Food Safety and Standards Act, 2006. Food business operators remain liable if they sell unsafe, misbranded or non-compliant products, regardless of the relaxation in inventory record-keeping requirements.
She added that the effectiveness of the reforms would depend on maintaining adequate traceability during food safety investigations while reducing regulatory burden.
Amit Anand, Managing Director of Apis India Ltd, said the reforms acknowledge the role of India’s extensive network of food traders, distributors and retailers. He noted that reducing compliance requirements for non-manufacturing businesses allows regulatory oversight to remain focused on production, where food safety risks are highest, and called the move a step towards broader compliance rationalisation across the food and beverage sector.