In the world of food industry certifications, the FPO (Fruit Products Order) mark stands out as a significant emblem of quality and safety for fruit-based products. This certification not only assures consumers of the product's compliance with health standards but also serves as a key factor for businesses looking to secure a business loan for expansion. Let us delve into what the FPO mark entails and how it intersects with the journey of obtaining business financing.
The FPO mark, governed by the Ministry of Food Processing Industries, signifies adherence to the Fruit Products Order, 1955, regulations. This certification is mandatory for all manufacturers, processors, and bottlers of fruit and vegetable products in India, ensuring that these products meet specified quality and safety standards. For businesses in the food sector, obtaining the FPO mark not only boosts consumer confidence but also enhances the company's standing when applying for a business loan, as it reflects a commitment to quality and compliance. Understanding the working capital cycle can further assist businesses in managing their finances effectively to meet these regulatory requirements.
Benefits of FPO Mark
Obtaining the FPO mark brings several advantages, including:
- Enhanced Marketability: Assures consumers of product quality and safety.
- Regulatory Compliance: Ensures adherence to specific standards set for fruit and vegetable products.
- Business Growth: Opens new market opportunities and can help with your business loan eligibility.
For entrepreneurs, understanding the dynamics of entrepreneurship is essential for leveraging such certifications to foster business growth.
Food Products Requiring FPO Mark
- Syrups, synthetic drinks, and sharbat
- Vinegar (synthetic or brewed)
- Pickles
- Dehydrated vegetables and fruits
- Fruit-based drinks like crushes, squashes, barley water, barrelled juice, cordials, and others with fruit pulp, juice, or nectar
- Jellies, jams, and marmalades
- Tomato products, such as sauces and ketchup
- Candied, preserved, and crystallised fruit peels
- Chutneys
- Bottled and canned fruits, pulps, juices, and vegetables
- Frozen vegetables and fruits
- Sweetened fizzy drinks with or without fruit pulp and juice
- Fruit cereal flakes
- Any other vegetable or fruit item not mentioned above
Who should obtain an FPO Mark certificate?
In India, obtaining an FPO mark certificate is essential for ensuring the quality and safety of food products. Entities ranging from food storage units to wholesalers and online food business operators must comply with this certification.
- Food storage units and food products: Entities involved in food storage and the production of various food products need to obtain an FPO mark certificate. Understanding the capital structure is crucial for these entities to optimise their financial strategies for compliance and growth.
- Importers and exporters of food products: Importers and exporters dealing with food products must acquire an FPO mark certificate to ensure compliance with regulations.
- Online Food Business Operators (FBOs): Online food business operators, including e-commerce platforms selling food products, are required to obtain an FPO mark certificate. Calculating the cost of capital is vital for these suppliers to maintain competitive pricing while ensuring quality.
- Raw food materials suppliers: Suppliers of raw food materials used in food production processes should obtain an FPO mark certificate.
- Food products distributors: Entities involved in distributing food products to retailers or consumers need to have an FPO mark certificate.
- Wholesalers/traders: Wholesalers and traders dealing with food products must obtain an FPO mark certificate to demonstrate adherence to quality standards.
- Food product transporters: Entities engaged in the transportation of food products should acquire an FPO mark certificate to ensure the integrity and safety of the products during transit. A clear understanding of the business environment can help transporters navigate regulatory and market challenges effectively.
Requirement of Obtaining FPO Mark
- The requirement of obtaining the FPO (Food Safety and Standards Authority of India) mark is essential for ensuring compliance with food safety standards. This mark signifies that the food product has been inspected and certified to meet the specified quality and safety standards set by the regulatory authority. It assures consumers that the product is safe for consumption and meets the necessary hygiene and quality requirements. Obtaining the FPO mark is mandatory for businesses involved in the production, processing, packaging, and distribution of food products to ensure adherence to food safety regulations and consumer protection.
- Adhere to the quality standards outlined in the Fruit Products Order, 1955.
- Ensure their manufacturing processes meet specified hygiene and safety norms.
- Submit to regular inspections and quality control measures.
Documents Required for FPO Mark
To obtain the FPO certification, the following documents need to be submitted:
- Demand draft for government fee
- Affidavits
- Partnership deed or company memorandum
- Three years of central and sales tax returns
- List of machinery and equipment
- PAN number of the company
- Pollution certificate or NOC certificate
- Copies of agreements or orders for providing goods
- Bank account details of the company
- Export licence number, if applicable
- Company registration certificate, if applicable
- Proof of ownership or rental agreement for company premises (e.g., electricity bill and rental agreement)
The Food Products Order (FPO) of 1955 was repealed by the Food Safety and Standards (FSS) Act, 2006. The FPO mark, which had been in use since 1955, became defunct after the FSS Act came into force. Under this new law, all previous certificates, registrations, and licences (including the FPO mark and certificate) lost their legal status. The Food Safety and Standards Authority of India (FSSAI) became the sole authority responsible for food standards and regulation across India.
Since then, FSSAI issues the FSSAI licence for food and fruit products previously manufactured under the FPO certificate. After 2006, manufacturers who had FPO marks were required to apply for the FSSAI certificate and display the FSSAI mark along with the licence number on their products. Today, food product manufacturers must comply with the safety, quality, and hygiene standards set out by the FSS Act.
FPO Mark Application
Every food processing manufacturer must submit Form A (Application for Licence) as per the first schedule of the Food Products Order, 1955, to the Ministry of Food Processing Industries. The application should include the following details:
- Name and address of the applicant
- Address of the factory/firm
- Description of the fruit products
- Duration for which the licence is needed
- Plan of the factory and list of equipment
- Horsepower used to manufacture the products, if applicable
- Installed capacity of the equipment
- License fee paid in the previous year, if any
- Total value of the fruit products manufactured
- Declaration of compliance with the Food Products Order, 1955, and payment of the required fee
- Signature of the applicant
Difference between FSSAI and FPO Mark
While both FSSAI and FPO marks are critical in the food industry, they serve different regulatory purposes. Here are some of the key differences between them:
Aspect |
FPO |
FSSAI |
When did it come into existence? |
The FPO was introduced in 1996, with mandatory FPO marks implemented in 2006. |
The FSSAI was established in 2006. |
Who requires it? |
It is necessary for businesses involved in the production of fruit and vegetable-based products. |
All businesses operating within the Indian food industry need it. |
Purpose |
Its primary aim is to ensure the safety, healthiness, and adherence to quality standards of products made from fruits and vegetables. |
FSSAI oversees and validates business standards across the food industry. Additionally, it aims to consolidate various food organizations under a single governing body. |
Current Status |
With the introduction of FSSAI, the relevance of FPO has diminished |
FSSAI remains actively enforced, prioritized for safety standards across all businesses. |
Conclusion
The FPO mark is more than just a certification; it is a testament to a business's dedication to quality and safety in the food industry. As businesses strive to expand and capture new markets, obtaining this mark not only elevates their product's appeal but also enhances their credibility with financial institutions. A business loan, in this context, can be a powerful tool, providing the necessary capital to achieve FPO certification and drive growth. By meeting the business loan eligibility criteria and securing the FPO mark, food businesses can embark on a journey of expansion and success, underpinned by quality and consumer trust.
