Requirements for Food Grain Export Business

Food grains like rice, millet, ragi seeds etc. are considered the lifeline of human existence as more than half of the world’s population depends on these food grains for their survival. India is the second largest producer of food grains in the world and one of the leading exporters of these grains globally.

For starting a 100% food grain export unit in India, it is mandatory for the owner/promoter/proprietor/partners to obtain the following registrations/licenses:-

• Register the food grain export unit as a legal business entity either as a Company, LLP, partnership firm or sole proprietorship.
• GST registration is mandatory for the filing of taxes and returns.
• Register with the Ministry of Micro, small and medium scale enterprises as per classification provided at the website of the ministry.
• Get the Import/Export code from the Directorate General of Foreign Trade.
• APEDA registration from the website of APEDA (Agricultural & Processed Food Products Export Development Authority). The main objective of APEDA is to promote export-oriented production and development of scheduled products. It inspects products before exports to ensure the quality of such products.
• ISI Certification from Bureau of Indian Standards.
• Get the FSSAI Central License. The Food Safety and Security Standards Authority of India is the nodal body responsible for the framing of appropriate regulations and guidelines related to articles of food, enforcing standards, provide scientific advice and technical support to the government for formulating policies related to consumption of safe food and nutrition. FSSAI is also responsible for creating an information network across the country so that all concerned stakeholders — consumers, the general public, law enforcing bodies are updated on food safety issues and concerns.

Details of Food License from FSSAI

Under the Food Safety & Standards (Licensing & Registration for Food Businesses) Regulations, 2011, a separate new category called ‘Exporting FBOs’ was added. This was done as more and more food exporters were being asked by the regulatory bodies of importing countries to provide documentary evidence of the food articles from corresponding Indian Food Authorities. As per the order, 100% export units will have to submit an undertaking that whenever they plan to launch the product in the Indian market for sale they will provide the Certificate of Compliance of the Food Product as required by the FSS Act, 2006.

Other than filling up the requisite Form-B and submitting other mandatory documents, the key document that needs to be submitted by the food grain exporter is the IEC document that has been issued to it by the Director General of Foreign Trade. The central license can be obtained within a month if the documentation is all properly done. Before issuing the license, however, verification will be done by the food inspector of the business premises. The license can be obtained for the duration of one year till five years after which the business entity needs to renew the license. In the event it is found that a particular export house has not taken the necessary approval and license from FSSAI, he is liable to pay penalty or be imprisoned or both. Even if the operator has got the license and is not following the laid down guidelines, he is liable to be punished by law.

We have years of experience in providing prompt company registration services, GST registration and return filing services; MSME registration, IEC registration as well as obtaining FSSAI license. Contact us for more information.