FSSAI has launched its most aggressive enforcement campaign in history, with record 5,20,566 inspections conducted in FY 2025-26, up from 4,01,391 in 2024-25 and 3,57,072 in 2023-24. The enforcement drive resulted in 31,878 civil cases decided with penalty and 1,918 criminal convictions, with authorities imposing penalties totalling ₹154.87 crore according to provisional data. Of the over 2.2 lakh food samples analysed, 40,023 were found non-conforming, meaning nearly one in every five samples failed to meet food safety standards. As per Outlook Business, this represents a significant escalation from previous years, with the regulator's increased visibility primarily driven by heightened state government activity rather than sudden regulatory aggression.
The enforcement campaign has significantly expanded beyond traditional food safety inspections to include dark stores and cloud kitchens, with more than 100 companies changing their labels following FSSAI scrutiny. According to businessline, FSSAI has written to the Office of the Controller General of Patents, Designs and Trade Marks to prevent registration of brand trademarks containing terms such as 'healthy'. In a single raid, FSSAI seized over 50,000 mislabeled packs and took action against alleged labelling violations, targeting products with '100%' claims. The regulator has also seized 35.48 lakh kgs and 86,921 litres of food products with a reported value of ₹42.01 crore, with more than 600 people arrested in the last six months over violations. Notable actions include suspension of licences for GMP, hygiene, pest-control and storage deficiencies and issued notices following complaints concerning products sold by Nestle India, KFC India and Flipkart.
The enforcement surge has created significant compliance costs for different business segments. A typical mid-sized multi-state food processing enterprise faces more than 3,285 unique compliance obligations, rising to 11,554 annual compliance actions when filing frequencies are considered according to a TeamLease RegTech report. For large companies, compliance represents a manageable challenge with dedicated teams and financial reserves, while smaller players face survival tests. The regulator has eased some burden by raising the turnover threshold for basic registration from ₹12 lakh to ₹1.5 crore in March 2026, exempting street vendors and small eateries from more stringent licensing requirements. However, the TeamLease report estimates a typical manufacturing MSME spends around ₹15.55 lakh annually on compliance, with labor laws alone accounting for nearly 50% of total obligations. From April 1, 2026, new turnover thresholds are Basic registration up to ₹1.5 crore, State licence from ₹1.5 crore to ₹50 crore and Central licence above ₹50 crore.
FSSAI is currently awaiting the Supreme Court's judgment on front-of-pack labelling regulations scheduled for September 10 review, with the regulator proposing red labels for products high in two nutrients under the HFSS (high fat, high sugar, high salt) category. The proposal has divided the industry, with industry executives raising concerns over stricter thresholds than foreign markets - a red warning if added sugar exceeds 3% of solid products by weight and fat exceeds 4.2%. Health advocates argue the two-nutrient threshold creates loopholes, while the regulator maintains that in a country of 1.4 billion people consuming nearly 1.5 trillion meals every year, ensuring food safety is a monumental task. The Supreme Court had previously questioned why restrictions should be limited to two nutrients, suggesting openness to expanding coverage.
The enforcement campaign has exposed significant challenges for India's 24.59 lakh food processing enterprises, with most operating in the unregistered segment. As per Outlook Business, the '2/98 paradox' shows that large and medium enterprises represent only 2% of units but contribute 60-65% of total production value, while small players face thin margins and limited compliance capacity. Rishi Agrawal from TeamLease RegTech emphasized that enforcement and clarity aren't trade-offs, with most confusion caused by incomplete rather than strict rules. The regulator has implemented some reforms including lifetime validity for MSME FSSAI licenses and fixed transition windows for new requirements, but industry experts call for 'risk-based enforcement' treating five-star kitchens differently from street vendors and 'one authoritative source for regulatory updates' to reduce compliance burden. The Dabur matter is particularly important as it raises procedural questions about '100%' claims, with the Delhi High Court staying an order observing that such claims should not be passed without hearing the company.
