FSSAI Checks Raise Compliance Costs for Food Firms

Food companies, restaurants and quick-commerce platforms in India could face higher compliance costs and operational delays as the Food Safety and Standards Authority of India (FSSAI) expands regulatory scrutiny across the food supply chain, according to a report by brokerage firm Jefferies.

The regulatory focus is moving beyond individual products to cover advertising claims, labelling, product authenticity, online listings, storage conditions and food-handling practices. The shift is prompting businesses to strengthen internal audits, documentation and quality-control systems.

According to the report, more than 150 notices have reportedly been issued to leading food, beverage, dairy and nutraceutical companies over misleading advertisements, unsupported claims and labelling violations. Some businesses have responded by withdrawing claims, revising labels, removing products from online platforms and discontinuing advertisements.

A key area of attention is the proposed introduction of front-of-pack warning labels for packaged foods high in sugar, salt and fat. The proposed red hexagonal labels could influence packaging design, marketing strategies and product reformulation decisions. These remain proposed measures rather than a confirmed requirement in the report.

Quick-Commerce Platforms Face Greater Accountability

Quick-commerce and e-commerce platforms are increasingly being viewed as accountable participants in the food supply chain, rather than simply as intermediaries connecting sellers and consumers.

Proposed requirements could call for online platforms to display product expiry dates, manufacturing details and batch numbers. Greater scrutiny is also expected around seller verification, product information and storage conditions at dark stores.

For food businesses selling through these channels, stronger product traceability, accurate listings and reliable inventory controls could become increasingly important operational priorities.

Restaurants and Dairy Businesses Under Scrutiny

Restaurants, quick-service chains, cloud kitchens and hotels are also facing tighter checks covering hygiene, licences, calorie disclosures and menu labelling. Jefferies' report said more than 30 notices had reportedly been issued to food-service establishments, including major restaurant chains.

The dairy sector is also affected by the wider regulatory focus. The report highlighted proposed restrictions on marketing dairy-analogue products as “paneer”, an issue that could influence product labelling and market positioning if the proposed measures are implemented.

Food companies and restaurant operators are responding by expanding compliance teams, conducting more frequent internal audits, training employees and strengthening quality-control procedures.

The broader implication is that regulatory compliance is becoming an increasingly important part of food-sector operations. Businesses with robust documentation, traceability and faster corrective-action processes may be better positioned to manage the evolving requirements, while additional checks could increase costs and affect operational efficiency across the supply chain.

Source: Dairynews7x7 16 Oct, 2026 Read full story here

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