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Centre Relaxes FSSAI Compliance Rules to Ease Burden on Food Businesses

National News June 26, 2026 | Author : Jyoti Prakash Mahapatra

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Bhubaneswar, June 26 (newsalert24x7): In a massive relief to thousands of small and medium food businesses across the country, the Central Government on Friday announced sweeping amendments to the Food Safety and Standards Regulations, 2011.

The Ministry of Health and Family Welfare has officially notified the revised guidelines, drastically cutting down complex paperwork and compliance burdens for retailers, while strictly maintaining India's core food safety standards.

Major Relief: Record-Keeping Only for Manufacturers

The biggest takeaway from the new amendment involves inventory management rules like FIFO (First In First Out) and FEFO (First Expiry First Out).

  • Old Rule: Every single licensed food business—from a mega-factory to a neighborhood grocery store—was legally forced to maintain rigorous, time-consuming stock-rotation and tracking records.
  • New Rule: These strict inventory obligations now apply only to food manufacturing units, where product traceability is absolutely critical to safety.
What this means for Retailers: Non-manufacturing food businesses—including local retailers, distributors, and small shop owners—are now completely exempt from these tedious record-keeping tasks.

Part of India's Broader Food Regulatory Overhaul

According to the Ministry, this move is part of a larger, aggressive push to modernize India’s food regulatory framework into a risk-based, business-friendly system.

Over the last few years, the government has rolled out several key reforms to support food businesses:

  • Perpetual Licenses: Elimination of frequent renewal processes by granting lifelong food licenses and registrations.
  • Smarter Thresholds: Revised financial turnover limits to keep micro-businesses out of heavy licensing nets.
  • Zero Dual-Compliance: Scrapping double regulatory burdens specifically for street food vendors.
  • Risk-Based Inspections: Moving away from random checks to data-backed, safety-priority inspections.

Backed by NITI Aayog Recommendations

The ministry highlighted that these changes weren't made overnight. They are the result of deep consultations with state governments, industry bodies, and a high-level committee on non-financial regulatory reforms set up by NITI Aayog.

Reaffirming its stance, the Ministry of Health stated that while it is fully committed to consumer safety through science-based regulations, it will continue to eliminate unnecessary bureaucratic hurdles that choke business growth.

For real-time updates on policy changes, business, and national news, keep refreshing newsalert24x7.

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