Feb 9, 2013

Food Safety and Standards Authority unable to implement a uniform licence scheme in Noida

NOIDA: February 4 was the deadline to get the FBO licence - for all eateries be it small restaurants or a chain - from Food Safety and Standards Authority of India (FSSAI). If a restaurant is found without licence, the authority can penalise it with hefty fine and even shut it down.

However, there are challenges for both FSSAI and restaurants. "FSSAI has begun with a few random checks to see if licences have been renewed or fresh licences have been attained for starting a food business. However, the central food authority faces trained manpower crunch but will surely act upon consumer complaint," Ashwin Bhadri, business relations head at Equiniox Labs, which works as a consultant for FSSAI and does lab checks on its behalf.

There are anywhere between 50 lakh and 60 lakh eateries in the country. Food safety has been a perennial challenge in India with frequent cases of food adulteration and food poisoning.

Noida restaurateurs and other food business operators have welcomed the central food authority, FSSAI's push for the implementation of the food business operator licence and registration to operate. It is an attempt to streamline and regulate the country's burgeoning Rs 50,000 crore eating-out industry.

The deadline was for food business operators, who need to renew their licences but those starting a new business will have to mandatorily acquire FSSAI licence in order to operate.

"FSSAI will not be able to penalise restaurants because numerous state food authorities, including Delhi and UP government, have still not created the infrastructure to issue licences. However, FSSAI can go ahead with random checks for compliances," emphasised Samir Kuckreja, president of the National Restaurants Association of India (NRAI).

According NRAI, the current food retail market size is worth around Rs 50,000 crore but it is predominantly unorganised (over 80 per cent). Contribution from organised players is only about Rs 8,000 crore. Within the organised market, Delhi-NCR accounts for nearly 18-20 per cent share.

"It is surely a progressive move and as an association we have been giving our recommendations to strengthen the Food Safety and Standards Act. Apart from centralising numerous Acts like PFA, FPO and others into one, it will also create accountability for all stakeholders across the food supply chain," said Kuckreja.

Manas Wadha, who owns Desi Vibes, Kaffia and Nysha in Noida Sector 18 is quite happy with the introduction of FBO licences. "Though it requires detailed documentations (around 35), I wouldn't say it is tedious but a step towards getting more organised. It was due for the restaurant industry and I am happy that it is happening."

Adding further, Manas said, "All serious operators will take the pain and the rest will move out. This exercise will make things easier for us."

For Rishabh Saxena of Kebab Plus in Noida, the devil is in the detail. "In practicality the guidelines need to be more user-friendly for all kinds of operators."

Under the guidelines, every restaurant in every city will require a separate licence from the state authority. In addition, a food business firm will need a central licence obtained from the head office - FSSAI.

A food business - whose annual revenue is Rs 12 lakh and above but less than Rs 20 crore - will require FBO licence from the state food authority but for businesses churning revenue over Rs 20 crore will have to get a central licence from FSSAI.

To get the 'food business operator' licence, all restaurants and hotels, snack bars, cafes, school and office cafeterias, and cafes within hospitals will need to comply with a series of stringent guidelines. To continue operations, they need to display copies of the licence at prominent places within the restaurant premises and employ at least one technical person to supervise the production process.

The compliance measures include: eateries must install chimneys; follow systematic cleaning schedules; follow procedures in sourcing raw material; and, install specific temperature control.

Ashish Kapoor, owner of Yo! China and Dimsums India is in favour of the move. "Deadlines are a a must. Otherwise nobody will take it seriously."

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