FSSAI Regulations Recontoured

The FSSAI has significantly revised the turnover thresholds governing food business registration and licensing. 

Under the new framework effective from 1 April 2026, businesses with turnover up to ₹1.5 crore will only require basic registration, businesses between ₹1.5 crore and ₹50 crore will require a State License, and only businesses exceeding ₹50 crore will need a Central License.

These revised thresholds replace the earlier limits of ₹12 lakh for registration and ₹20 crore for Central Licensing. 

The reform aims to reduce compliance burdens for small food businesses while allowing regulators to focus oversight on larger and higher-risk entities.

The policy reflects a broader shift in Indian regulatory governance toward behavioural compliance, risk-based supervision, and facilitation of voluntary formalisation, similar to the compliance-nudge approach adopted in indirect tax administration.