The Ministry of Health and Family Welfare has notified amendments to the Food Safety and Standards Authority of India licensing and registration rules, changing how certain record-keeping and stock rotation requirements apply to food businesses.
The changes have been made through the Food Safety and Standards (Licensing and Registration of Food Businesses) Amendment Regulations, 2026. They amend the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011, issued under the Food Safety and Standards Act, 2006.
The main change is that requirements linked to maintaining records and following stock rotation practices will now apply only to food manufacturing businesses. Earlier, all licensed food businesses had to maintain records and follow stock rotation based on First In First Out, known as FIFO, or First Expiry First Out, known as FEFO.
What has changed for food businesses
FIFO means older stock is used or sold first. FEFO means products with the earliest expiry date are used or sold first. These systems are used to reduce the risk of expired or older products remaining in circulation.
According to the ministry, these controls will continue for food manufacturers because they are important for food safety, quality checks and product traceability. Manufacturing businesses handle production, processing and packaging, where such records can help trace ingredients, batches and finished goods.
Non-manufacturing food businesses have been exempted from these requirements. The source specifically mentions retailers and similar entities. This means the amended rules reduce the formal compliance load for businesses that do not manufacture food products, while keeping the controls in place where the ministry considers them most relevant.
Relief aimed at smaller operators
The ministry said the amendment is expected to reduce compliance requirements for food business operators, especially small and medium enterprises. Many such businesses face paperwork and process obligations even when their operations are limited to selling or handling finished food items.
The amendment does not remove food safety oversight. It changes the scope of two requirements, record maintenance and FIFO or FEFO stock rotation, by limiting them to manufacturing units. Other licensing and registration obligations under the food safety framework are not described as removed in the release.
Part of wider compliance reforms
The ministry described the notification as part of its wider work to simplify regulation in the food sector. The release refers to earlier measures introduced over the past few years for food business operators.
- Provision of perpetual licences and registrations.
- Revision of turnover thresholds.
- Removal of dual compliance requirements for street food vendors.
- Use of a risk-based inspection system.
These steps are presented by the ministry as efforts to make compliance simpler and more focused on risk. In practical terms, the latest amendment separates food manufacturers from businesses such as retailers for the purpose of stock rotation and related record requirements.
Consultations before notification
The ministry said the reforms were finalised after consultations with States, Union Territories and stakeholders from the food business sector. It also said the amendments align with the recommendations of the High-Level Committee on Non-Financial Regulatory Reforms constituted by NITI Aayog.
That committee had recommended reducing unnecessary regulatory burdens while keeping effective oversight. The ministry said it remains committed to strengthening India’s food safety framework through science-based rules, consultations with stakeholders and simplification of regulations.
For food manufacturers, the key compliance duties around records and FIFO or FEFO stock rotation remain in place. For retailers and other non-manufacturing food businesses, the notified amendment provides a narrower compliance requirement under the licensing and registration regulations.
Source: Press Information Bureau, Government of India.