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Introduction To Food and Beverage Law

This document provides an introduction to food and beverage law in India. It discusses the key sectors of the food and beverage industry - farming, processing, and distribution. The farming laws that regulate the agricultural sector in India are described, including compliance with international standards. Food processing is an integral part of the industry and is regulated by several laws governing sanitation, licensing, packaging, and labeling. Previously, the Prevention of Food Adulteration Act of 1954 regulated food safety, but it was replaced by the Food Safety and Standards Act of 2006. The document also notes that the first legal decision for starting a restaurant in India is choosing the appropriate business entity structure.

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58 views2 pages

Introduction To Food and Beverage Law

This document provides an introduction to food and beverage law in India. It discusses the key sectors of the food and beverage industry - farming, processing, and distribution. The farming laws that regulate the agricultural sector in India are described, including compliance with international standards. Food processing is an integral part of the industry and is regulated by several laws governing sanitation, licensing, packaging, and labeling. Previously, the Prevention of Food Adulteration Act of 1954 regulated food safety, but it was replaced by the Food Safety and Standards Act of 2006. The document also notes that the first legal decision for starting a restaurant in India is choosing the appropriate business entity structure.

Uploaded by

Trivia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MODULE 1

INTRODUCTION TO FOOD AND BEVERAGE LAW

1.1 INTRODUCTION TO FOOD AND BEVERAGE INDUSTRY


Food and Beverage industry is considered as one the fastest growing industry in India.
‘The Indian food industry is poised for huge growth, increasing its contribution to
world food trade every year. In India, the food sector has emerged as a high-growth
and high-profit sector due to its immense potential for value addition, particularly
within the food processing industry.’1 The food and Beverage Industry can be broadly
classified into three major sectors i.e. farming, processing and distributing.

1.1.1 Agricultural/Farming Laws in India


India being a member of the Food Agriculture Organization of the United Nations
since 1945 has to make laws in order to comply with their prescribed standards.
Further India signed the International Plant Protection Convention and became a
member of World Animal Health Organization. Farming is not limited to production
and collection of raw agricultural commodities but also includes animals. Thus there
are various laws which must be complied with. For example, a person owning a dairy
farm has to comply with certain rules, regulations and standards established by the
legislation. Further the legislation is too made in a manner to honor international
treaties and obligations. Similarly there are various laws which are laid down in order
to protect the agricultural land and an individual or company investing in the
agricultural sector must be well versed all the respective laws.

1.1.2 Food Processing


It is an integral part of the value chain and involves the processing of raw food
commodities into forms that can be easily distributed and sold to consumers. The
Indian Food Processing industry is regulated by several laws which govern aspects
like sanitation, licensing, standardization, packaging and labeling laws, various
permits etc. Earlier the legislation that dealt with food safety law in India was
Prevention of Food Adulteration Act, 1954. The objective of the act was to protect the
public from poisonous and harmful food, avert the sale of substandard foods and to
1
Indian Brand Equity Foundation, “Indian Food Processing”, Published on May 2017,
<https://www.ibef.org/industry/indian-food-industry.aspx>
protect the interest of the consumer by eradicating fraudulent practices. However the
act could not meet the changing demands of the growing food industry thus emerged
a demand for a new legislation. The act that replaced the Prevention of Food
Adulteration Act, 1954 was the Food Safety and Standards Act, 2006 which has an
overriding effect over all other food laws. It specifically repealed eight laws which
were in operation prior to the enforcement of FSSA.

1.2 PRE-REQUISITES FOR STARTING A RESTAURANT IN INDIA

1.2.1 Choice of Business Entity

The first legal or financial decision that entrepreneur has to take regarding the
restaurant is to choose the business entity i.e. Proprietorship, Partnership, Limited
Liability Partnership, Private Limited Company or a One Person Company. Each
business entity has its own set of advantages and disadvantages.

PLEASE NOTE:
THE NUMBERING FOR MODULE 2 WILL START WITH 2.1., 2.2, FOR MODULE 3,
3.1., 3.2. SO ON AND SO FORTH.
FOR A SUBTOPIC UNDER TOPIC 2.1., IT WILL BE NUMBERED AS 2.1.1…

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