Law Updates

Subject

Summary: On 23rd June 2026, the Food Safety and Standards Authority of India (FSSAI) notified the Food Safety and Standards (Licensing and Registration of Food Businesses) Second Amendment Regulations, 2026 in the Gazette of India. This notification brings two important changes for every food business in India, from big manufacturers to small shopkeepers. This guide breaks down the entire notification in simple language, explains what has actually changed, why it matters, and how your business can stay compliant without confusion. The Regulatory Framework Every food business in India, whether it makes food, packs food, stores food, or sells food, must follow rules made under the Food Safety and Standards Act, 2006. This is the main law that governs food safety in the country. Under this Act, FSSAI made the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011. These are the master rules that tell every Food Business Operator (FBO) what license conditions they must follow and what hygiene standards they must maintain. FSSAI has the legal power, under Section 92(2)(o) read with Section 31 of the Act, to amend these regulations whenever needed, with the Central Government's prior approval. That is exactly what has happened now. FSSAI followed the correct legal process: it first published a draft amendment on 23rd January 2026, invited objections and suggestions from the public and industry for 30 days from 27th January 2026, reviewed those responses, and only then issued the final, binding regulation on 23rd June 2026. This amends the original 2011 Regulations (notified 1st August 2011), which had last been amended on 10th March 2026. What Has Changed? The amendment touches two specific parts of the 2011 Regulations. Let's look at each one closely. 1. Daily Record-Keeping Condition (Schedule 2, Annexure 3 License Conditions) This is about Serial Number 8 under the "Conditions of License" list, which every licensed food manufacturer must follow. Earlier, this condition required maintaining daily records of production and raw material utilization. Now, it clearly requires these records to be maintained separately, meaning two distinct daily records instead of one combined entry. Importantly, this condition does not apply to non-manufacturing food businesses, so traders and distributors who don't manufacture anything are out of its scope. 2. Storage Rule for Raw Materials and Food Products (Schedule 4, Part II, Para 5.2.5) This is part of the general hygiene and sanitary requirements every FBO applying for a license must follow, under the "Food Operations and Controls" section. Earlier, the storage requirement was fairly general. Now, storage of raw materials, ingredients, work-in-progress, and processed/cooked/packaged food must strictly follow FIFO (First In, First Out) and FEFO (First Expired, First Out) principles. In simple words, the oldest stock and the stock closest to its expiry date must be used or sold first. This is a globally recognized food safety practice used to cut down on spoilage and wastage. This requirement does not apply to retailers. S. No. Where What Changed Who Is Exempted 1 Schedule 2, Annexure 3, Condition 8 Separate daily record of production and raw material use Non-manufacturing food businesses 2 Schedule 4, Part II, Para 5.2.5 Mandatory FIFO and FEFO storage system Retailers Implementation Timeline/Norms Unlike many regulations that give businesses a grace period of 6 months or a year, this amendment has no separate transition period. The notification clearly states it comes into force "on the date of their publication in the Official Gazette," meaning the rule is applicable from 23rd/24th June 2026 itself, the day it was published. Date Event 23rd January 2026 Draft amendment notified for public objections 27th January 2026 Draft made available to the public (30-day clock starts) Late February 2026 30-day objection/suggestion window closes 23rd June 2026 Final regulation notified in the Gazette Immediate Regulation comes into force, no additional waiting period What this means for businesses: There is no "wait and watch" option here. Since the regulation is already in force, food businesses covered under these provisions should start aligning their record-keeping and storage practices right away to avoid compliance gaps during FSSAI inspections or license renewals. Why This Was Implemented? FSSAI did not make this change randomly. There are clear, practical reasons behind both amendments: Better traceability of food: Separate records of production and raw materials make it much easier for FSSAI to trace back a food safety issue to its source, such as a specific batch of raw material. Reducing food wastage and spoilage- making FIFO/FEFO a formal requirement (instead of just a "good practice") ensures older or near-expiry stock is used first, cutting down food waste across the supply chain. Consumer safety: When expired or near-expired ingredients don't sit at the back of the storeroom while fresh stock is used first, the chances of expired food reaching consumers go down significantly. Reducing unnecessary burden on small players- FSSAI clearly built in exemptions: non-manufacturing businesses don't need the detailed production record, and retailers don't need to implement full FIFO/FEFO systems. This shows the intent was to target actual risk points rather than adding paperwork everywhere. Global alignment- FIFO and FEFO are internationally recognised food safety and quality management practices (used in HACCP and ISO 22000 systems), bringing Indian food regulations closer to global standards. Impact on Businesses The impact of this amendment is different depending on what kind of food business you run, so it helps to break it down by category. Food manufacturers feel the full weight of both changes. They must now maintain separate daily records of production and raw material utilization, and they must also reorganize their storage practices to follow FIFO and FEFO principles strictly. This means updating internal record formats, whether on paper registers or in digital/ERP systems, so that production data and raw material consumption data no longer sit together in one combined entry. Food processors and packagers are in a similar position to manufacturers. Since they handle raw materials, work-in-progress, and packaged food, both the record-keeping conditions and the storage conditions apply to them directly. They need to plan for Labeling systems that show manufacturing and expiry dates clearly, and warehouse layouts that push older or near-expiry stock out first. Warehousing and storage businesses are affected mainly by the second change. Even if they don't manufacture anything themselves, if they store raw materials or processed and packaged food on behalf of others, the FIFO/FEFO storage requirement applies to them. Whether the record-keeping condition applies depends on whether they also carry out any manufacturing activity. Non-manufacturing food business operators, such as pure traders and distributors who don't produce or process food themselves, get relief from the record-keeping condition since it is explicitly stated not to apply to non-manufacturing businesses. However, if they store processed or packaged food, the FIFO/FEFO storage rule can still apply to them. Pure retailers, like convenience stores and supermarkets selling packaged food directly to consumers, are the least affected group. Since they don't manufacture food, the record-keeping condition doesn't apply to them. Since the notification specifically exempts retailers from the FIFO/FEFO storage requirement, they are free from that obligation too. Restaurants and food service businesses need to check their own operations carefully. If they only serve food prepared fresh for immediate consumption, they may fall closer to non-manufacturing status. But if they process, prepare in bulk, or store ingredients and packaged food over time, both conditions are likely to apply. In practical terms, this means the businesses that must act immediately are manufacturers, processors, and storage operators. They need to redesign how they record daily production and raw material figures, and how they physically arrange stock so that older or soon-to-expire items are used or sold first. Retailers and non-manufacturing traders, on the other hand, get genuine regulatory relief here. They don't need to build new systems for these two specific conditions, which meaningfully reduces their overall compliance burden compared to businesses further up the supply chain. How Will Businesses Achieve Compliance? Compliance here is achievable and doesn't require expensive overhauls if done systematically. Here's a step-by-step approach. Step 1: Identify Your Business Category First, confirm whether you are a manufacturer, non-manufacturer, or retailer under FSSAI's definitions. This decides which of the two new conditions apply to you. Step 2: Update Record-Keeping Systems (For Manufacturers) Maintain a separate daily production register and a separate daily raw material utilization register. These can be kept physically or through software/ERP tools. FSSAI does not mandate a specific format, only that the records be maintained and kept distinct. Keep records dated, signed, and ready for inspection at any time. Step 3: Redesign Storage Practices Around FIFO/FEFO Label all raw materials and finished goods with the manufacturing date and expiry date. Arrange storage racks so older stock is placed in front and used first (FIFO). Where expiry dates vary due to different batches, prioritize the stock expiring soonest (FEFO). Use colour-coded labels, batch numbers, or barcode/QR systems for easy identification. Step 4: Train Staff Warehouse and production staff must understand FIFO/FEFO practically, not just in theory. Simple visual charts near storage areas help staff follow the system correctly every day. Step 5: Conduct Internal Audits Do monthly or quarterly internal checks to confirm records are being maintained, and FIFO/FEFO is actually being followed on the ground, not just on paper. Step 6: Keep Documentation Ready for FSSAI Inspection FSSAI officers can inspect these records during routine checks or license renewal. Non-compliance can lead to license suspension, cancellation, or penalties under the FSS Act. Compliance Checklist Table Action Item Applicable To Priority Separate production & raw material registers Manufacturers High Digital/manual record-keeping system Manufacturers High FIFO/FEFO labelling and layout Manufacturers, processors, and storage units High Staff training on FIFO/FEFO Manufacturers, processors, and storage units Medium Internal compliance audit All applicable FBOs Medium Confirm exemption status Non-manufacturers, retailers High Benefits for Businesses While this looks like a compliance requirement, it actually brings real business value: Reduced food wastage and spoilage- FIFO/FEFO ensures older and near-expiry stock is used first, directly cutting down losses and improving profit margins over time. Better inventory accuracy- separate, disciplined record-keeping gives businesses a clearer picture of raw material usage and production efficiency. Faster and easier recalls- clean, separated records let a business trace and recall affected batches quickly if a food safety issue ever arises, protecting brand reputation. Smoother FSSAI inspections and audits- Businesses with organised records face fewer queries, delays, or penalties during license renewal or surprise inspections. Improved buyer and export confidence- Large retail chains, export buyers, and institutional clients increasingly expect FIFO/FEFO discipline and clean documentation as part of vendor selection. Foundation for future certifications- These practices align closely with HACCP, ISO 22000, and other recognized food safety standards, making it easier to pursue certifications later. Lower risk of penalties- Proactive compliance reduces the chances of license suspension, cancellation, or fines due to missing or disorganized records. Stronger internal control- clear separation of data helps management track production efficiency and raw material costs more precisely, supporting better business decisions. Right Decision or Additional Burden? This is a fair question that every food business owner is asking.  The Case for the Right Decision The rule targets real, known risk areas, expired stock reaching consumers and untraceable production data both of which have caused food safety issues in India before. FSSAI has deliberately exempted non-manufacturers and retailers, showing the rule is proportionate rather than a blanket burden. FIFO/FEFO and separated records aren't new concepts either; most organized food businesses already follow some version of this informally, and the rule makes it a formal, enforceable requirement. The Case for Additional Burden Small and medium manufacturers without digital systems will need to invest time, and possibly money, in setting up proper record-keeping. There is no transition period, meaning businesses must comply immediately with limited preparation time. Physical redesign of storage areas for FIFO/FEFO can also involve real cost for businesses with large or complex inventories. The Balanced View Overall, this amendment leans more toward being a right regulatory decision than an unnecessary burden, because it directly targets food safety and traceability while keeping small non-manufacturing players and retailers exempted. The main challenge for businesses is the speed of compliance required, not the substance of the rule itself. Business Opportunities Created Every new compliance requirement also opens the door for new business and service opportunities. FSSAI compliance consulting and documentation support firms, inventory and warehouse management software providers, barcode/QR-based batch tracking system vendors, staff training and certification institutes, warehouse and storage rack solution providers, and food safety auditors can all find growing demand as businesses race to align with this amendment. Food businesses that act early and set up strong systems now will not only stay compliant but can also position themselves as more trustworthy suppliers to large retailers, exporters, and institutional buyers who prefer working with organized, well-documented vendors. Corpseed's Core Message Regulatory changes like the FSSAI Second Amendment Regulations, 2026, are not meant to slow businesses down; they are meant to build a safer, more transparent food ecosystem in India. The good news is that this amendment is practical, targeted, and workable, with sensible exemptions for smaller and non-manufacturing businesses. At Corpseed, our message to every food business is simple: don't wait for an inspection to discover a compliance gap. Understand exactly which part of this amendment applies to your business, set up your record-keeping and FIFO/FEFO systems correctly, and treat this as an opportunity to strengthen your food safety credibility, not just as another government formality. Whether you need help understanding your FSSAI license conditions, setting up compliant documentation systems, or getting expert guidance on the latest FSSAI regulations, staying proactive today is always cheaper and easier than fixing violations tomorrow.