License Needed To Start Food Waste Management Business

Enterclimate

09 Aug, 2022

Food waste includes cooked and processed food items as well as uncooked food items. Food waste management is of grave concern in a vast country like India. Waste is not the correct term to be associated with food as a component of wasted food that is perfectly fit for consumption. Food waste Management Businesses in the form of food banks and food waste processing industries are becoming popular and can involve various approaches depending on the nature and state of food. Unused or extra food fit for consumption can be distributed to the needy, while waste food must be sent to disposal. Waste management in food leads to the recovery of resources that could have been lost if it became part of the municipal solid waste. Disposal should be the last resort when the food is decomposing or does not have any value. Distribution of extra food from restaurants, parties, public events, households, etc., can be done through food banks. Management of food waste from the processing of food waste to form a variety of edible and non-edible items will need proper disposal of need necessary licenses and permits. Finally, disposal of food waste will be as per the solid waste management rules and will require proper authorisation from the concerned SPCB. Through this piece, we will elaborate on the authorization needed for establishing a food waste management Business in India and the Pollution NOCs needed to start the business. But let’s first understand the economics of food wastage and loss of a valuable resource due to mismanagement in the food industry.

The economic impact of wasting food

In India, setting up restaurants and other food outlets has proven to be very lucrative, with a market overview expected to be the value of 866.70 billion US dollars in 2022 with an expected CAGR (Compound annual growth rate) of 8.01% by 2022-2027. With this amount of market value, there is an increased influx of food-related businesses in the market, but this has also revealed a waste management issue that needs immediate fixing. The Food Waste Index Report of 2021 revealed that 17% of all food available at the consumer level was wasted in 2019. The food waste by households was around 11 %, while food services like restaurants accounted for 5% and retail establishments accounted for 2% of the wastage. That year, India’s estimated net value of food wastage was around 92,000 crores. 24 % of global food loss and waste production happens at the production stage, another 24% throughout the handling and storage process, and 35 % at the consumption stage. India ranks 2nd in the Global Food Waste Index 2021, only behind China. Currently, 40 % of the food grown, processed, or cooked in India is wasted. The amount of food waste generated, disposed and recycled in the past five years has been tabulated below.

Applicability of Solid Waste Management Rules in Food Waste Management

The Solid Waste Management Rules of 2016^[1] were introduced in suppression of the Municipal Solid Waste (Management and Handling) Rules, 2000, to increase the scope of its application beyond the earlier span by including the Municipal area. Rules to regulate and monitor solid waste management in India. As per the existing rules, bio-degradable waste must be treated and disposed of or recycled through bio-methanation or composting within the premises as far as possible, and the residual waste must be given to authorised waste collectors or agencies as directed by the local authority. Food waste Management comes under its ambit. The Rules cover areas under the administration of Indian Railways, ports and harbours, defence establishments, airports, airbases, special districts, census towns, notified industrial townships, urban agglomerates, places of business, State and Central government agencies, and economic zones and historical and religious places. Along with this, the rules also include the Duties of various stakeholders, including Waste generators and authorities. Under the SWM Rules, all hotels and restaurants must segregate compostable waste and set up a system of collecting food waste so that it can be further channelised for composting or bio-methanation. These rules also highlight waste segregation at the source to turn food waste into wealth through recovery, reuse and recycling.

Market overview of Food Waste Management Business

The Food Waste Management Business is an evolving industry with much impetus for consistent high returns. It is estimated that in 2022 the food waste management industry in India will be worth $62.6 billion. Further, according to Future Market Insights (FMI), the total market value is estimated to reach US$ 116.4 billion by 2032, with a CAGR (Compound annual growth rate) of 6.4 percent for the years 2021-32.

Registering Food Waste Management Business in India

The producers or recyclers must comply with environmental standards as per Schedule I and Schedule II of the Solid Waste Management Act. Following are the licenses required to start Food Waste Management Business

• SPCB Authorisation: To establish a food waste Management business in India, the business owner must get authorisation from the state pollution control board/Pollution Control Committee. After authorization, they are required to submit Form 1. After this, the authorities will conduct an examination/inspection by Pollution Control Board for authorization.

Consent NOC: The Food Waste Management business facility must apply for a Certificate of Consent from the state pollution control board under the Water and Air Act. The Certificate of Consent is obtained in two parts Consent to establish (CTE) and Consent to Operate (CTO) under the Water Act, 1974 and Air Act, 1981. Manufacturers are required to acquire Consent to Establish before the establishment of the Industry and Consent to operate (CTO) before starting the operations.

FSSAI Registration: The FSSAI has mandated every food business operator to secure an applicable food license to ensure the safety of the food. In case the business is producing an edible item with by-product waste from food processing facilities, an FSSAI registration^[2] will be required.

Documents required with the application for Food Waste Management Business

The appropriate and authorised documents are required to be submitted with the application for Food Waste management

• Proof of ownership, including site or rent/lease agreement;
• Factory license/trade license (if applicable);
• Electricity bill;
• Water bill;
• Details of the machinery installed;
• Aadhar Card of the business owner;
• PAN (Permanent Account Number) Card of the business owner;
• GST Certificate for the business;
• Site plan/Layout plan;
• Process flow chart;

Conclusion

 The Scope of a Food Waste Management Businessis many, depending upon how one chooses to manage the waste. While a food distribution business will include prevention of food wastage through the timely collection, cold storage and hygienic handling of food, the management of spoiled food is done through composting and anaerobic digestion through bio-methanation. Disposal facilities businesses must abide by the provisions prescribed under the SWM Rules. Lastly, the most popular food waste management businesses are working on the principle of nutrient recovery, and such businesses are becoming profitable in a short amount of time. Whatever your business plan is, an expert’s assistance throughout the process of licencing and setting up the business will save both time and money, along with making the entire process hassle-free.