FSSAI License for Oil Extraction Units

1. Introduction: Why Every Oil Extraction Unit Must Have an FSSAI License

If you’re running or planning to launch an oil extraction unit in India — whether it’s cold-pressed mustard oil, virgin coconut oil, sesame oil, or even specialty oils like flaxseed or almond oil — there’s one non-negotiable truth:

👉 You need an FSSAI License.

Yes — even if your operation is small, home-based, or uses traditional methods like stone grinding or expeller pressing.

The Food Safety and Standards Authority of India (FSSAI) treats all edible oils as regulated food products under the Food Safety and Standards Act, 2006. This means no matter how “natural” or “artisanal” your oil may be, if it’s meant for human consumption, it must comply with national food safety standards.

What Is an Oil Extraction Unit?

An oil extraction unit is any facility where:

Seeds, nuts, or fruits are processed to extract oil
Methods include cold pressing, solvent extraction, expelling, or mechanical pressing
Output is sold commercially (packaged or bulk)

Examples:

Mustard oil from mustard seeds
Coconut oil from fresh copra
Sesame oil from til seeds
Groundnut oil from peanuts
Flaxseed oil from linseed
Olive oil (imported or locally pressed)

Even if you’re using age-old techniques like hand-rolling or wooden presses, the final product is still classified as food — and therefore requires FSSAI licensing.

❗️Important: Selling packaged or branded oil without FSSAI is illegal. Authorities can shut down your unit, impose fines up to ₹10 lakh, and block e-commerce listings.

Why This Matters for Your Business

Without proper FSSAI licensing, your oil business risks:

Legal action and shutdown
Loss of credibility among buyers
Inability to sell on Amazon, Flipkart, BigBasket, or Swiggy Instamart
Rejection by retailers and distributors

On the flip side, getting your FSSAI license for oil extraction units opens doors to:

National and international markets
Brand trust and customer loyalty
Investment opportunities
Export potential

In short: FSSAI isn’t just a formality — it’s your business passport into the Indian and global food market.

Let’s dive deep into what exactly this license entails, who needs it, and how to get it right.

✅ Next Up: Section 2 – What Exactly Is an FSSAI License for Oil Extraction Units?

2. What Exactly Is an FSSAI License for Oil Extraction Units?

Before applying, it’s essential to understand what an FSSAI license actually is — and why it applies to oil extraction.

Definition: What Is an FSSAI License?

An FSSAI License is a legal permit issued by the Food Safety and Standards Authority of India that allows any individual or company to manufacture, process, pack, store, distribute, or sell food products in India.

For oil extraction units, this includes:

Extracting oil from raw materials
Filtering, refining, and packaging
Storing and transporting finished oil
Selling branded or unbranded oil

The license ensures that:

The oil is safe for human consumption
Processing meets hygiene and quality standards
Packaging and labeling comply with FSSAI rules
Contaminants (like aflatoxins, heavy metals) are within limits

Think of it as a food safety passport — required for every oil business, regardless of size.

Types of FSSAI Licenses (Which One Do You Need?)

There are three main categories, based on annual turnover and scale of operation:

Type	When Required	Annual Turnover Limit	Validity
FSSAI Registration (Basic)	Small-scale operators	Up to ₹12 lakh/year	1 year
FSSAI State License	Medium-sized units	₹12 lakh – ₹20 crore/year	1–5 years
FSSAI Central License	Large-scale manufacturers/distributors	Above ₹20 crore/year	1–5 years

✅ For most oil extraction businesses — especially those producing packaged oils — the State License is typically required.

But here’s the catch: Even small home-based units making artisanal oils must register if they plan to sell beyond their household.

Let’s clarify something important:

🔹 FSSAI Registration ≠ FSSAI License

Registration: For businesses with turnover < ₹12 lakh/year

License: For higher-volume producers, processors, or distributors

For example:

A farmer extracting mustard oil at home for personal use? → No FSSAI needed.
A family-run kitchen selling cold-pressed mustard oil in 500ml bottles via WhatsApp? → FSSAI Registration required.
A startup packaging coconut oil for nationwide delivery? → FSSAI State License required.

📌 Key Takeaway: If your oil is packaged and sold commercially, you need either FSSAI Registration or License — not optional.

Why Oil Extraction Units Fall Under FSSAI Jurisdiction

Even though many oil extraction methods are traditional, FSSAI considers all edible oils as food under the Food Safety and Standards Act, 2006.

This includes:

Cold-pressed oils
Virgin oils
Refined oils
Blended oils
Specialty oils (e.g., flaxseed, hemp, macadamia)

As long as the product is:

Consumed orally
Sold in packaged form
Marketed for cooking, health, or wellness

→ It falls under FSSAI regulations.

⚠️ Exception: Only if your oil is used strictly for industrial or cosmetic purposes (not for eating), then FSSAI may not apply. But if it’s labeled for cooking or health, FSSAI is mandatory.

So yes — your oil extraction unit needs an FSSAI license.

✅ Next Up: Section 3 – Eligibility Criteria for FSSAI License for Oil Extraction Units

3. Eligibility Criteria: Who Needs an FSSAI License for Oil Extraction?

Not everyone needs an FSSAI license — but most oil extraction entrepreneurs do.

Here’s how to determine if your business qualifies:

✅ Who Must Get an FSSAI License?

You need an FSSAI license if your oil extraction unit involves any of these activities:

Activity	Requires FSSAI License?	Notes
Extracting oil from seeds/nuts (mustard, groundnut, sesame)	✅ Yes	Even manual or mechanical methods
Packaging oil in bottles, cans, or pouches	✅ Yes	Commercial sale triggers compliance
Selling branded oil online (Amazon, Flipkart, Nykaa)	✅ Yes	Platforms require FSSAI proof
Exporting oil (domestic or international)	✅ Yes	Requires full FSSAI + IEC code
Operating multiple units across states	✅ Yes	Central License recommended
Using chemical solvents (hexane) or refining processes	✅ Yes	Higher scrutiny due to processing

💡 Pro Tip: Even if you’re a sole proprietor or run a micro-enterprise, FSSAI registration is still mandatory if you sell packaged oil.

❌ Who Does NOT Need an FSSAI License?

Only very limited cases are exempt:

Farmers selling raw seeds directly from farm (no extraction or packaging)
Home cooks preparing oil only for personal use
Traditional artisans selling unbranded oil at local fairs (without packaging)

⚠️ Once you start packaging, branding, and selling, even casually, FSSAI applies.

Common Misconceptions About Oil Extraction & FSSAI

Let’s clear up some myths:

Myth	Reality
“Since it’s cold-pressed, I don’t need FSSAI”	False. All edible oils are regulated.
“Only refined oils need FSSAI”	No. Raw, cold-pressed, and virgin oils are equally covered.
“I can use ‘natural’ or ‘organic’ to bypass FSSAI”	No. These terms don’t override food safety laws.
“My oil is for cooking only — not health”	Still needs FSSAI. Cooking oil = food.
“I’m a small producer — no one will check”	Authorities conduct surprise raids, especially in e-commerce hubs.

📌 Bottom Line: No exceptions for oil extraction units — if it’s edible and sold commercially, it needs FSSAI.

✅ Next Up: Section 4 – Types of FSSAI Licenses for Oil Extraction Units

4. Types of FSSAI Licenses for Oil Extraction Units

Choosing the right FSSAI license depends on your business size, location, and production volume.

Let’s break down the three types clearly:

1. FSSAI Registration (Basic – Form A)

For: Small-scale units, home-based entrepreneurs, farmers, street vendors
Turnover limit: Up to ₹12 lakh/year
Application: Online via FSSAI portal (Form A)
Validity: 1 year
Fee: ₹100 (basic registration)
Documents needed: PAN, Aadhaar, address proof, bank details

✅ Ideal for: Farmers extracting mustard oil for local sale, home kitchens making coconut oil for family use and gifting.

2. FSSAI State License (Form B)

For: Medium-sized manufacturers, processors, packers, distributors
Turnover limit: ₹12 lakh – ₹20 crore/year
Application: Online via FSSAI portal (Form B)
Validity: 1–5 years (choose duration during application)
Fee: ₹2,000 – ₹5,000 (depending on state and processing capacity)
Documents needed: Company PAN, GSTIN, incorporation certificate, factory layout, list of machinery, lab test reports (for certain products)

✅ Ideal for: Startups producing cold-pressed sesame oil, flaxseed oil, or almond oil for wider distribution.

3. FSSAI Central License (Form C)

For: Large-scale manufacturers, exporters, multi-state operations
Turnover limit: Above ₹20 crore/year
Application: Directly through FSSAI Central Office (or via State Authority)
Validity: 1–5 years
Fee: ₹7,500 + additional charges for large plants
Documents needed: Detailed plant layout, quality control system, third-party lab reports, export agreements

✅ Ideal for: Established brands exporting coconut oil or mustard oil globally.

📌 Quick Decision Guide:

Making small batches at home? → FSSAI Registration

Running a kitchen/production unit with monthly sales > ₹1 lakh? → FSSAI State License

Exporting or operating in multiple states? → FSSAI Central License

💡 Bonus Tip: You can upgrade from Registration to License later — no penalty. But starting wrong could delay approvals.

✅ Next Up: Section 5 – Documents Required for FSSAI License for Oil Extraction Units

5. Documents Required for FSSAI License – Checklist for Oil Businesses

Applying for FSSAI is simple — but only if you have all the correct documents ready.

Here’s a complete, verified checklist tailored for oil extraction units:

✅ Mandatory Documents (All Cases)

Document	Purpose	Notes
PAN Card of Applicant	Identity verification	Individual or company PAN
Aadhaar Card / Voter ID / Passport	Address proof	Must match business address
Proof of Business Address	Location verification	Electricity bill, rent agreement, NOC from landlord
Bank Account Details	Payment and KYC	Cancelled cheque or bank statement
List of Raw Materials Used	Ingredient disclosure	Include seeds, nuts, solvents, additives
Product Description & Formula	To assess safety	Specify source, method, and yield

✅ Additional Documents Based on Business Type

For FSSAI Registration (Home-Based Units)

No need for GSTIN
No factory layout required
No lab reports needed (unless requested)

For FSSAI State License (Manufacturing/Packaging Units)

GSTIN (required if turnover exceeds ₹20 lakh)
Certificate of Incorporation (for LLP, Pvt Ltd, Co-op)
Factory Layout Plan (showing storage, extraction, filtering, packaging zones)
List of Machinery & Equipment (e.g., expellers, filters, bottling machines)
Third-Party Lab Test Reports (for aflatoxins, moisture, free fatty acids, peroxide value) – Highly Recommended
Food Safety Management System (FSMS) Manual (optional but preferred)

📌 Lab Testing is Crucial for Oils
Edible oils can contain contaminants like:

Aflatoxins (from moldy seeds)

Heavy metals (lead, cadmium)

Rancidity (oxidized oils)

Moisture content (leads to spoilage)

🔎 Example: A groundnut oil sample tested positive for aflatoxin B1 → immediate rejection of FSSAI application.

✅ Best Practice: Get your first batch tested by NABL-accredited labs (e.g., Agmark, SGS, Intertek).

✅ Optional but Helpful Documents

Document	Benefit
Trademark Registration	Builds brand value; supports application
ISO 22000 Certification	Shows advanced food safety management
Organic Certification (e.g., USDA, India Organic)	Boosts credibility for premium buyers
Export License (IEC Code)	Needed for international shipments

📌 Tip: Always keep digital copies of all documents — you may need to upload them during application.

✅ Next Up: Section 6 – Step-by-Step FSSAI License Application Process (Online)

6. Step-by-Step FSSAI License Application Process (Online)

Applying for FSSAI is now fully digital — no more paperwork headaches.

Here’s how to do it in 8 easy steps:

🔹 Step 1: Visit the Official FSSAI Portal

Go to: https://foodlicensing.fssai.gov.in

Click on “New Registration/License” → Choose “Apply Online”

🔹 Step 2: Select the Correct Category

Choose based on your business:

FSSAI Registration (for turnover ≤ ₹12 lakh)
FSSAI State License (for turnover ₹12L–₹20Cr)
FSSAI Central License (for turnover > ₹20Cr)

📌 Pro Tip: Use the FSSAI Eligibility Checker Tool on the portal to confirm your category.

🔹 Step 3: Fill in Basic Details

Provide:

Name of applicant (individual/LLP/Private Ltd)
Contact info (email, mobile)
Business type (manufacturer, processor, distributor, etc.)
Nature of food (edible oil, refined oil, cold-pressed oil, etc.)

🔹 Step 4: Upload Required Documents

Attach scanned copies of:

PAN card
Aadhaar
Address proof
GSTIN (if applicable)
Factory layout (for State/Central License)
Lab test reports (recommended)

📌 File Format: PDF/JPEG (max 2MB per file)

🔹 Step 5: Pay the Fee Online

FSSAI Registration: ₹100
FSSAI State License: ₹2,000 – ₹5,000 (varies by state)
FSSAI Central License: ₹7,500+

Payment modes: Net banking, UPI, credit/debit card

🔹 Step 6: Submit & Receive Acknowledgment

After submission, you’ll get:

Application Reference Number (ARN)
Date of Application
Status tracking link

📌 Save this ARN — you’ll need it for follow-ups.

🔹 Step 7: Verification & Inspection (If Required)

For State License, an inspector may visit your premises.
They’ll check:
Sanitation
Storage conditions
Labeling accuracy
Hygiene practices

⏱️ Inspection timing: Usually within 30 days of application

🔹 Step 8: Receive Your FSSAI License

Once approved:

You’ll receive the FSSAI License Number via email/SMS
Download the digital copy from the portal
Display the license number prominently on packaging and website

🕒 Average Time to Approval:

FSSAI Registration: 1–7 days

FSSAI State License: 7–30 days

FSSAI Central License: 30–60 days

✅ Pro Tip: Apply early — delays can impact product launches or e-commerce listings.

✅ Next Up: Section 7 – Post-License Compliance for Oil Extraction Units

7. Post-License Compliance: Staying FSSAI-Compliant After Getting Licensed

Getting the license is just the beginning. Ongoing compliance is critical to avoid penalties, audits, or cancellation.

Here’s what you must do:

✅ 1. Display FSSAI License Number Clearly

On every product package
On your website homepage
In product descriptions
On e-commerce listings

📌 Format: FSSAI License No.: 123456789012

✅ 2. Maintain Accurate Records

Keep digital records of:

Production logs
Ingredient sourcing
Lab test results
Batch-wise tracking
Customer complaints

🔐 Best practice: Use a simple Excel sheet or cloud-based software.

✅ 3. Renew on Time

FSSAI license expires after 1, 3, or 5 years
Renew at least 3 months before expiry
Late renewal = penalty (up to ₹5,000)

🛠️ Set calendar reminders!

✅ 4. Update Information When Changes Occur

Notify FSSAI if there’s any change in:

Business name
Address
Ownership
Product range
Manufacturing process

Use the “Update” option on the FSSAI portal.

✅ 5. Conduct Regular Lab Testing

Test every new batch or product variant for:

Aflatoxins
Peroxide value
Free fatty acids
Moisture content
Heavy metals

📌 Frequency: At least once every 6 months or after formulation changes.

✅ 6. Follow Labeling Rules (FSSAI Mandatory)

Your packaging must include:

FSSAI License No.
Product name
Net weight
Ingredients list
Expiry date
Manufacturer name & address
Country of origin (if imported)
Storage instructions
“Not for medical use” disclaimer (if applicable)

📌 Avoid words like “cures,” “treats,” “prevents” — these are drug claims and illegal.

❌ Don’t say: “Reduces cholesterol” → Say: “May support heart health”

✅ Next Up: Section 8 – Penalties for Non-Compliance

8. Penalties for Non-Compliance: What Happens If You Skip FSSAI?

Ignoring FSSAI isn’t just risky — it’s expensive.

Here’s what can happen if you operate without a valid license:

Violation	Penalty	Consequences
Operating without FSSAI license	Fine up to ₹10 lakh	Business shutdown
Selling adulterated/oil with aflatoxins	Imprisonment + fine	Legal case
Misleading labels (false claims)	₹50,000 fine	Brand damage
Delayed renewal	₹5,000 penalty	License suspension
Repeated violations	Cancellation of license	Permanent ban

📌 Real Case: In 2023, a Gujarat-based oil unit was fined ₹8.5 lakh for selling groundnut oil with high aflatoxin levels and no FSSAI license.

🔥 Result: Website taken down, social media accounts suspended, and product recalled.

⚠️ Warning: Authorities now conduct surprise raids — especially in e-commerce hubs.

✅ Next Up: Section 9 – Common Mistakes in FSSAI Applications for Oil Extraction Units

9. Common Mistakes in FSSAI Applications for Oil Extraction Units

Avoid these costly errors:

Mistake	Solution
Using outdated or incorrect ingredient names	Use scientific names (e.g., Arachis hypogaea)
Not listing all raw materials	Include even minor components
Submitting low-quality document scans	Use clear, colored PDFs
Skipping lab tests	Get reports from NABL labs
Claiming medical benefits	Stick to wellness, not treatment
Applying under wrong category	Use the FSSAI eligibility tool first

💡 Golden Rule: If in doubt, consult an FSSAI expert or consultant.

✅ Next Up: Section 10 – How a Consultant Can Help You Get FSSAI Fast & Right

10. How a Consultant Can Help You Get FSSAI Fast & Right

Hiring an FSSAI consultant saves time, reduces risk, and ensures success.

They help with:

Choosing the right license type
Preparing documents correctly
Drafting FSMS manual
Arranging lab testing
Tracking application status
Handling inspections

💼 Cost: ₹5,000 – ₹15,000 (one-time)

📈 ROI: Avoids rejections, delays, and fines.

✅ Next Up: Section 11 – FAQs on FSSAI License for Oil Extraction Units

11. FAQs on FSSAI License for Oil Extraction Units (20+ Questions)

Q1: Is FSSAI license mandatory for oil extraction units?

Yes. Any edible oil sold commercially must have FSSAI registration/license.

Q2: Can I sell homemade oil without FSSAI?

Only if sold personally (e.g., at festivals, fairs). Commercial sale requires FSSAI.

Q3: How much does FSSAI license cost?

Registration: ₹100
State License: ₹2,000–₹5,000
Central License: ₹7,500+

Q4: How long does it take to get FSSAI license?

Registration: 1–7 days
State License: 7–30 days
Central License: 30–60 days

Q5: Can I apply online?

Yes. All applications are done via fssai.gov.in

Q6: Do I need lab testing?

Not mandatory, but strongly recommended for oils.

Q7: Can I use “cold-pressed” on my label?

Yes — but only if the process matches the claim.

Q8: Can I sell on Amazon without FSSAI?

No. Amazon requires FSSAI proof for food products.

Q9: Can I renew late?

Yes, but with a penalty of ₹5,000.

Q10: What if my oil contains aflatoxins?

You must conduct lab testing and ensure levels are below FSSAI limits.

Q11: Do I need GSTIN with FSSAI?

Only if turnover exceeds ₹20 lakh/year.

Q12: Can I apply for FSSAI from another state?

Yes — but you must have a physical presence (address, warehouse) in that state.

Q13: Can I sell on BigBasket or Swiggy Instamart?

Yes — but they require FSSAI, GSTIN, and lab reports.

Q14: Is organic certification enough?

No. FSSAI is separate and mandatory.

Q15: Can I transfer FSSAI license?

Yes — through a formal application for change of ownership.

Q16: Can I sell exported oil without FSSAI?

No. Export requires FSSAI + IEC code + foreign certifications.

Q17: Do I need a separate license for each product?

No. One FSSAI license covers all food products under the same category.

Q18: Can I make claims like “supports heart health”?

Yes — but only if supported by evidence and not misinterpreted as medical treatment.

Q19: What if my product is rejected?

You can reapply after fixing the issue (e.g., lab report, documentation).

Q20: Can I get FSSAI without a shop?

Yes — home-based businesses can apply.

✅ Next Up: Section 12 – Conclusion

12. Conclusion: Secure Your Oil Extraction Business with FSSAI

Running an oil extraction business is more than tradition — it’s responsibility.

Every bottle of mustard oil, every jar of coconut oil, every tin of sesame oil carries trust.

And FSSAI is the foundation of that trust.

Whether you’re a farmer, a startup founder, or a seasoned brand, FSSAI license for oil extraction units is not a choice — it’s a necessity.

It protects:

Your customers
Your reputation
Your business

And it unlocks:

E-commerce access
Investor confidence
National and global reach

Don’t wait until you’re slapped with a fine or banned from Amazon.

👉 Start your FSSAI journey today!

🔥 Apply for FSSAI License Now – Free Consultation Available
Get expert guidance, fast processing, and peace of mind.

Your oil legacy deserves safety. Let FSSAI be your shield.