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FSSAI Eases Compliance Norms for Food Businesses, Exempts Retailers from FIFO Rule

New Delhi: The Food Safety and Standards Authority of India (FSSAI) has notified amendments to the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011, easing certain compliance requirements for food business operators while retaining key food safety standards.

FSSAI Eases Compliance Norms for Food Businesses, Exempts Retailers from FIFO Rule

The Food Safety and Standards (Licensing and Registration of Food Businesses) Second Amendment Regulations, 2026, notified on June 23, will come into force with immediate effect following their publication in the Official Gazette.

The amendments follow a public consultation process initiated in January this year, during which the food regulator invited objections and suggestions from stakeholders before finalising the revised provisions.

Relief for Non-Manufacturing Food Businesses

One of the key amendments relates to record-keeping requirements under the conditions of licence.

Under the revised regulations, only manufacturing food businesses will be required to maintain daily records of production and separate records of raw material utilisation.

The notification specifically exempts non-manufacturing food businesses—including traders, distributors and service establishments—from this requirement, reducing documentation and compliance burden for businesses that do not undertake food production.

Retailers Exempted from FIFO Requirement

The regulator has also amended hygienic and sanitary practice requirements relating to inventory management.

The revised provision requires storage of raw materials, ingredients, work-in-progress and processed, cooked or packaged food products to follow the First In, First Out (FIFO) and First Expire, First Out (FEFO) principles.

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However, retailers have now been explicitly exempted from complying with the FIFO and FEFO inventory management requirement, recognising the operational differences between retail outlets and food manufacturing or processing units.

Outcome of Stakeholder Consultation

The amendments were finalised after FSSAI considered objections and suggestions received from stakeholders following publication of the draft regulations in January 2026.

The authority said the changes have been made under powers conferred by Section 92 read with Section 31 of the Food Safety and Standards Act, 2006, with the prior approval of the Central Government.

Industry Impact

The latest amendments are expected to simplify regulatory compliance, particularly for smaller food business operators, retailers and non-manufacturing establishments, while maintaining mandatory food safety practices for manufacturers and processors.

Industry observers say the changes reflect FSSAI’s continued effort to adopt a more risk-based regulatory framework by aligning compliance obligations with the nature of food business operations rather than applying uniform requirements across the sector.

The notification marks the second amendment to the Licensing and Registration Regulations in 2026 and follows earlier revisions notified in March this year.

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