Introduction: FSSAI License for Cold Storage Business

Indian economy was in dire straits after it gained independence from British Rule. Soon the government started facing the challenges involved in providing twice-a-day meals to the Indian masses which were poor and hungry. Then the government started the green revolution as a policy to make the Indian economy self-reliant as for as production of required foodgrain  the stock was concerned. Now the problem of plenty has surfaced as the total food production is more than the total food consumption.

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In case of rabi and Kharif crops (wheat, rice, corn etc), the Food Corporation of India (FCI) generally purchases most of the stock but in case of perishable food items like fruit and vegetables, a cold storage facility is required immediately after they are ready for processing. The cold storage facilities in India are virtually non-existent and as a result, half of agriculture produce gets rotten in the Sabji Mandis and Fruit Mandies across India. This is proving a double edged sword as we get lesser produce for consumption and are forced to pay a high price for rest of available food.

Overview of Cold Storage Business

A Cold storage facility is a walk-in freezer space where refrigeration of perishable food products and pharmaceuticals is performed. Any cold storage unit consists of a refrigeration system required for temperature-controlled environment for retarding the effect of microorganisms on the food and for storing fruits and vegetables.

Two types of refrigeration system are available in the market though not much research efforts are put into development of refrigeration technology.  A businessman can either opt for Vapor absorption system (VAS) or Vapor compression system (VCS) for his refrigeration unit.Potato, Garlic, Onion, Tomato, Cauliflower, Cabbage, Onion, Beans, Egg Plants, Cucumber, Gherkin, Peas, and Okra. The list of fruits includes Mangoes, Grapes, Apple, Apricots, Orange, Banana Fresh, Avocados, Guava, Litchi, Papaya and Water Melons

How to Start Cold Storage Business in India

The business of Cold Storages comes under Small Scaled Industrial (SSI) Units. An individual may enquire about the cold storage and the subsidies, grants for their setting up, from either the Office of Horticulture Board or related department of local IAS officer. He can also apply for FSSAI license online. The list of documents required for FSSAI license depends on the annual turnover of the food business. A small food business can be registered with FSSAI by filling Form A while medium and large FBO shave to fill Form B.

FSSAI and the Food Safety License / Registration

An FBO need to acquire FSSAI license / registration as section 92 of the Food Safety and Standards Act, 2006 and Food Safety & Standards Regulation, 2011 mandates this. FSSAI issues Food Safety license to ensure that the FBOs comply with safety, hygiene and sanitary conditions of the food regulations. The registration application process can be completed in five simple steps: The Form-B has to be downloaded and then submitted after filling complete details. A unique Reference Id is created for reference at later stages. An FBO is then required to submit the hard copy of the application to his State or Regional Office of Food Safety and Standards Authority of India (FSSAI), within 15 days from the date of online submission of application. The documents which are to be attached along with the application are Acknowledgment copy, Online Application Form and fees in the form of Demand Draft or the online payment proof.

The Licensing Criteria:

The criteria for licensing/registration for a Cold Storage Unit should be based on the turnover rather than the storage capacity (MT).

• If the annual turnover of the food business is up to Rs. 12 lakhs, then a Registration Certificateis required from the FSSAI.
• If the annual turnover of a food business exceeds Rs. 12 lakhs and is up to Rs. 30 crores, then a State License is required.
• If annual turnover is above Rs. 30 crores, then FSSAI Central License is needed.