The food safety watchdog recently tightened the screws on online grocery platforms after a series of inspections revealed their lax operating standards. Anvitii Rai examines the series of events and what India can do to ensure that the burgeoning e-commerce space delivers quality food to its customers
What is the FSSAI order for e-commerce?
At its recent meeting with over 70 representatives from e-commerce platforms last week, the Food Safety and Standards Authority of India (FSSAI) laid out a set of rules. First, CEO G. Kamala Vardhana Rao directed them to prominently display their FSSAI license numbers on every receipt, invoice, and cash memo given to consumers as well as to display information regarding the Food Safety Connect App (where citizens can share their concerns about food safety violations) on all consumer-facing documents.
Second, platforms were asked to list details of their warehousing and storage facilities on the Food Safety Compliance System (FoSCoS) portal and adhere to hygiene norms, with photographs of these facilities to be uploaded to it regularly. Third, food handlers, including e-commerce personnel involved in the food management process, will undergo compulsory FSSAI Food Safety Training and Certification (FoSTaC) in hygiene protocols, and platforms were asked to share their training plans and timelines with the regulator. Last, a requirement to display expiry dates of each product on the consumer interface was mulled at the meeting.
What does the e-grocery landscape in India look like ?
India’s e-grocery market has undergone a massive transformation in the past few years, mostly credited to the emergence of several quick-commerce platforms such as Zepto, Blinkit and Instamart, among others. A Kearney report states that the quick commerce grocery market is slated to grow threefold between 2024 and 2027, reaching about `1.5-1.7 lakh crore. The report further states, “During this period, quick commerce is expected to extend to all towns with a population of 500,000 or more while achieving deep penetration among India 1 households (households with an annual income of `6 lakh or more).” To put that in perspective, it is worth noting that 40 Indian cities exceed the 1-million mark for population. And as platforms race to grab market share there is the strong possibility of them cutting corners to save on costs.
What spurred the FSSAI crackdown?
Eternal’s Blinkit set off regulatory alarms in 2024 when its warehouse in Telangana was found to be housing infested products, using dusty storage racks, and lacking headgear or aprons for food handlers. Trouble has also been brewing in Maharashtra, as its Food and Drug Administration (FDA) suspended Blinkit’s food licence in Pune’s Balewadi region last month for failing to comply with regulations, when it was discovered that the facility lacked a licence from FSSAI to manufacture, distribute, or sell food. A similar investigation of Zepto’s Dharavi location was conducted, and the FDA said fungal growth was seen on food articles, food storage was located near stagnant water, cold-storage temperature was not maintained, and expired food items were mixed with the main stock. Its food-business licence was suspended after violations of food-safety requirements were identified, and restored after a re-inspection.
Do punitive measures work?
To its credit, the FSSAI has been quite vigilant when it comes to quick commerce players, as seen by the aforementioned inspections and crackdowns on major e-grocery platforms. An article by law firm Cyril Amarchand Mangaldas in 2024 had listed some of the major challenges that the e-commerce food & beverage space faces—eateries listed with food delivery apps lacking FSSAI registration, the lack of enforcement of internal standards of procedures and obligations to conduct frequent checks by food delivery platforms; and more.
Also, the penalties that can be imposed under the FSSAI Act run into only a few lakhs, while under the Central Consumer Protection Act the maximum penalty is `50 lakh. Thus, calling out brands and platforms for maintaining poor hygiene standards and other violations can prove to be more effective as brand reputation matters. At a recent media event, food processing industries minister Chirag Paswan had said, “I am not just talking about penalties …beyond them we can dent their brand names to an extent.”
Global standards for food safety
Primary global standards for food safety include ISO 22000 (International Organisation of Standardisation), the BRCGS Global Standard for Food Safety (Brand Reputation through Compliance Global Standards), and FSSC 22000 (Food Safety System Certification). This set of standards provides frameworks for food businesses to manage food safety risks, ensuring products are safe and meet quality requirements. In India, none of these standards are legally mandated. In the US, the Food Safety Modernisation Act (FSMA) applies to all facilities that manufacture, process, pack, or hold food, including those involved in e-commerce. Key components include Hazard Analysis and Risk-Based Preventive Controls (HARPC), wherein facilities must develop and implement a written food safety plan, compulsory facility registration with the FDA, and more. E-commerce food retailers are required to display clear signage detailing allergens, ingredients and nutritional content.