New FSSAI Registration Rules 2026: Small-scale food business operators are set to receive relief regarding registration requirements. The government has significantly raised the turnover threshold for basic FSSAI registration. This limit has been increased from ₹12 lakh to ₹1.5 crore.
Food Business Rules: Major Relief for Street Vendors; FSSAI Regulations Amended
This means that businesses operating within this turnover limit will now only be required to obtain a basic registration through a simplified process. This new rule will come into effect on April 1, 2026, and is expected to provide substantial relief to small shopkeepers by reducing paperwork and administrative hassles.
The Type of License is Determined Based on Business Turnover-
The licensing process for food businesses has now been clearly categorized based on business turnover to make it easier for entrepreneurs to understand. If a business has an annual turnover of up to ₹1.5 crore, it must operate under 'Basic Registration'—a process considered to be the simplest of all procedures.
Conversely, businesses with a turnover exceeding ₹1.5 crore but falling within the limit of ₹50 crore are required to obtain a State-level license. Furthermore, large enterprises with a turnover exceeding ₹50 crore must obtain a Central license, which applies to operations conducted on a large scale.
Regulations Eased for Street Vendors-
Small entrepreneurs selling food and beverages on the streets have also received significant relief. Under the 'Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014,' vendors who are already registered with their respective municipal corporations or Town Vending Committees are no longer required to undergo a separate registration process with the FSSAI. Such vendors will be deemed as registered vendors, thereby simplifying their operations and relieving them of the hassles associated with excessive paperwork.
