FSSAI has revised the turnover thresholds for categorisation of food businesses for the purpose of Registration, State Licence and Central Licence. This change is important for all Food Business Operators (FBOs) because the type of approval required will now depend on the revised turnover slabs notified by FSSAI, and these revised limits are effective from 1 April 2026.
Earlier, food businesses were categorised under the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011 based on the turnover thresholds and criteria then applicable. Now, pursuant to the 2026 amendment framework, FSSAI has specifically implemented revised turnover limits and clarified that these new thresholds supersede earlier orders and regulations on turnover-based categorisation.
Background of the change
FSSAI stated that the 2011 Regulations governed licensing and registration of food businesses across the country and provided different turnover thresholds and criteria for categorisation into Registration, State Licence and Central Licence. Thereafter, based on the recommendations of NITI Aayog’s High Level Committee on Non-Financial Regulatory Reforms and after approval of the Food Authority and the Ministry of Health and Family Welfare, FSSAI notified the Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026 on 10 March 2026. These amendments also addressed issues like dual compliance for street food vendors, perpetual validity of FSSAI registration and licence subject to risk-based inspections, and enabling provisions for specifying turnover thresholds and other categorisation criteria from time to time.
New turnover limits from 1 April 2026
Under the revised framework, FSSAI has prescribed the following turnover-based categorisation for food businesses:
1. FSSAI Registration
Applicable where turnover is up to Rs. 1.5 crore.
2. State Licence
Applicable where turnover is above Rs. 1.5 crore and up to Rs. 50 crore.
3. Central Licence
Applicable where turnover is above Rs. 50 crore.
Effective date
The revised turnover thresholds will come into effect from 01.04.2026. Therefore, from this date onward, food businesses should evaluate their turnover and ensure that the correct category of registration or licence is obtained or maintained.
Why this change is important
This revision is significant because many food businesses that were earlier falling into a different compliance bracket may now move into a new category depending on their turnover. For example, a business that was earlier required to obtain a State Licence may now fall within simple Registration if its turnover is within the revised threshold of Rs. 1.5 crore. Similarly, medium-sized businesses will need to check whether they now fall under the expanded State Licence slab up to Rs. 50 crore.
This change may reduce compliance burden for smaller food businesses and also create more clarity for medium and large FBOs.
Practical understanding of each category
1. Registration – Up to Rs. 1.5 crore turnover
Small food businesses whose turnover does not exceed Rs. 1.5 crore can operate under FSSAI Registration. This is a major threshold because many local food operators, small manufacturers, retailers, home-based food businesses and petty food businesses may fall within this slab depending on the nature and scale of operations.
2. State Licence – Above Rs. 1.5 crore and up to Rs. 50 crore
This category covers a broad mid-segment of food businesses. If annual turnover exceeds Rs. 1.5 crore but does not exceed Rs. 50 crore, the business would generally require a State Licence. This slab is important for growing food brands, regional manufacturers, distributors, restaurants, caterers and other organised food businesses operating at a moderate scale.
3. Central Licence – Above Rs. 50 crore
Larger food businesses with turnover above Rs. 50 crore will require Central Licence. This will generally apply to large manufacturers, importers, exporters, large chains and other sizeable food businesses crossing the specified threshold.
Supersession of earlier turnover orders
FSSAI has clearly stated that this order supersedes all earlier orders and regulations relating to turnover thresholds or criteria under the 2011 Regulations for categorisation of food businesses. This means from 1 April 2026, the revised turnover slabs should be treated as the governing turnover limits for classification into Registration, State Licence and Central Licence.
Compliance action points for Food Business Operators
Food business operators should now take the following practical steps:
First, review the turnover of the business for the relevant financial year.
Second, identify whether the business falls under Registration, State Licence or Central Licence according to the revised limits.
Third, where required, apply for fresh category alignment or renewal compliance based on the new threshold.
Fourth, ensure internal records and compliance documents are consistent with the revised licensing category from 1 April 2026 onward.
These steps will help avoid operating under an incorrect registration or licence category.
Examples for better understanding
Example 1
A small bakery has annual turnover of Rs. 95 lakh.
It will fall under FSSAI Registration because turnover is up to Rs. 1.5 crore.
Example 2
A restaurant chain operating in one state has annual turnover of Rs. 8 crore.
It will require State Licence because turnover is above Rs. 1.5 crore and up to Rs. 50 crore.
Example 3
A packaged food manufacturer has annual turnover of Rs. 72 crore.
It will require Central Licence because turnover exceeds Rs. 50 crore.
The revised FSSAI turnover thresholds are an important compliance update for the food industry. From 1 April 2026, the classification will be:
- Registration: up to Rs. 1.5 crore
- State Licence: above Rs. 1.5 crore and up to Rs. 50 crore
- Central Licence: above Rs. 50 crore
As this order supersedes earlier turnover-based categorisation norms, every food business operator should immediately review its turnover position and ensure that the correct FSSAI registration or licence category is being followed from the effective date.
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