Technical errors delay online licensing, registration process for new FBOs

The procedure for application of local license/registration for starting or renewing a food business operation in Mumbai and Thane was supposed to go online on Saturday. However, due to technical difficulties with the software it has been postponed to the next week.

This was informed by Suresh Annapure, assistant commissioner, food, Food and Drug Administration (FDA), Thane division.

“Food and drugs commissioner Mahesh Zagade would be inaugurating the software,” Annapure informed.

Currently, the provision for making an online application is only present for central licenses, and Maharashtra will be the first state to have local licenses and registration procedure placed online.

However, there are a number of technical errors, which have to be corrected before that. One, HSAN (Harmonisation system number) codes adapted from international standards used for classification of commodities is not applicable for Indian food items.

“It is very difficult to classify traditional Indian products using this code, for example products like dosa mix, frozen wada, and frozen idli have not been allotted any category. So we have to skip that and go to the next question, else software throws a problem,” said M M Chitale, FBO consulting and technical services, who has currently applied for around 25 licenses on behalf of the food business operators. He said that the categorisation codes should be adapted to the Indian food market.

Further, Chitale mentioned that even the transporters need to obtain a license or get themselves registered. “We hardly have any dedicated transport for the food businesses except for commodities like milk and oil. The rest of the products are transported by the food business operators as per convenience. So, sometimes a lorry carrying cement is also used for transporting food, so who is responsible for quality then,” he asked.

“Also, will the transporter travelling from one state to another need two different licenses,” Chitale asked, further.

There are several other problems that licensing authorities and FBOs are facing related to licenses, albeit the Food Safety and Standards Authority of India (FSSAI), has sent an advisory to the state enforcement wings to stop imposing penalty in the case of delay of application for renewal of licenses. This relaxation on penalty will be applicable till August 5, 2012.

Prior to the new food law, any delay in making an application for renewal was treated with a penalty of Rs 100 per day.

“Meanwhile, what is the action that licensing authorities should take if the renewal date expires? Since there is no penalty, should we consider the license cancelled or let go the delay and renew the licenses,” asked Annapure.

“We have asked the FSSAI for a guideline which is expected next week,” Annapure said. Chitale suggested that an NOC (No Objection Certificate) can be issued in the interim period to allow food business operators function normally.

The industry opines that the Authority has started the enforcement work in haste without proper homework done. “There is absolutely no awareness about the licensing procedure of the Food Safety and Standards Act among the FBOs particularly in the rural areas. A massive awareness campaign with inclusion of students and NGOs (non-governmental organisations) can help,” Chitale suggested.

“Interestingly, Maharashtra has collected around Rs 35 crore up till now as licensing fee paid by the FBO from the time the new food law has come into force. The target is Rs 510 crore. Is there a way to divert these funds to create awareness? The authority can easily reach the FBO and even help him fill the requisite form by going to the location of his business. The collected revenue can be utilised this way,” said another source.