Author : Nimisha Chadha

Expert Speak Terra Nova
Published on Jun 06, 2025

As India’s bustling street food culture feeds millions, weak enforcement and underinvestment threaten food safety, signalling the time to bridge the gap between tradition and regulation.

Strengthening Food Safety in India’s Informal Vendor Economy

Image Source: Getty

India’s food retail sector comprises both organised and informal players, supported by a complex network of stakeholders across the supply chain, including producers, manufacturers, processors, distributors, retailers, municipal authorities, the Food Safety and Standards Authority of India (FSSAI), and consumers. As of 2023, the food and grocery retail sector was valued at US$ 719 billion, of which 93 percent is attributed to unorganised, traditional formats. With over 10 million street food vendors, constituting 11 percent of the urban workforce, the industry plays an integral role in the Indian economy. Beyond their economic significance, street vendors are an accessible and affordable source of nutrition for several, while also being integral to the social and cultural fabric of the country. 

Nevertheless, the informal nature of the majority of the Indian food industry raises challenges in terms of regulatory oversight. Unsafe food costs India an estimated US$ 15 billion annually, with approximately 100 million foodborne illnesses and 120,000 consequent deaths. Food is often sold in unhygienic circumstances, without cold storage or quality checks. In contrast to retailers in the organised sector, traditional top-down enforcement is inadequate for the informal players, and efforts must balance food safety while preserving the industry. This inadequacy stems from factors such as the mobility of vendors, cash-based transactions, and minimal documentation, which collectively hinder effective monitoring and enforcement.

However, the World Health Organization (WHO) cautions that, given street vendors’ importance in the diets of urban populations — particularly those of the socially disadvantaged — efforts should be made to preserve the benefits provided by varied, inexpensive, and nutritious street food. The rigorous application of conventional codes and regulations may lead to the disappearance of such trade. Instead, WHO encourages the development of regulatory frameworks that empower vendors to take greater responsibility for food safety.

The Food Safety and Standards Authority of India 

The Food Safety and Standards Authority of India (FSSAI), established in 2008 under the Food Safety and Standards (FSS) Act, 2006, has authority over all matters pertaining to food safety. The FSSAI has been working to set regulations aligned with international standards, while simultaneously balancing the interests of the Food Business Operators (FBOs). 

Among several initiatives, the FSSAI introduced the Food Safety Training and Certification (FoSTaC) Programme in 2017 for various kinds of food businesses, focusing on hygiene and good manufacturing practices. In 2024, the FoSTaC aimed to train one lakh street food vendors and waived their registration fee. The programme also provided a rapid testing kit to empower them with certifications so as to build consumer trust. A 2023 study assessing the impact of FoSTaC on food handlers in the catering sector found a significant improvement in hygiene and sanitation knowledge post-training. 

In the absence of basic sanitation and storage facilities, most street food vendors risk microbiological contamination, causing the spread of infections.

In 2018, the FSSAI also piloted the Clean Street Food Hub (CSDHI) initiative to raise hygiene standards in street food clusters. In the absence of basic sanitation and storage facilities, most street food vendors risk microbiological contamination, causing the spread of infections. The FSSAI seeks to partner with local authorities to improve these hubs by facilitating training and developing infrastructure to aid compliance with basic hygiene and sanitary requirements. 

Parallelly, a joint initiative launched in 2023 by the Ministry of Health and Family Welfare (MoHFW) and the Ministry of Housing and Urban Affairs (MoHUA) called ‘Food Street Project’ aims to develop 100 healthy and hygienic food streets,  with provisions for safe drinking water, hand-washing and toilet facilities, waste disposal units, and specialised carts. The FSSAI has also launched a nationwide “Eat Right India” movement, which combines initiatives targeting both the supply and demand sides through training and awareness campaigns.  This initiative signifies a strategic shift from punitive enforcement to participatory engagement, encouraging collaboration among stakeholders to foster a culture of food safety.

Implementation Challenges

Balancing the interests of street vendors with the maintenance of food safety standards is a precarious task. While the FSSAI has overarching authority, inspections are carried out by state and local agencies. In practice, however, as of 2018, most states did not have a department dedicated to food safety, with officials from various departments left multi-tasking, with minimal institutional understanding or backing. States were found issuing licenses based on incomplete documents, and lacked a uniform recall mechanism. In 2021, the FSSAI launched the Food Safety Compliance through Regular Inspection and Sampling (FoSCoRIS) digital system to aid inspection. As of 2023-24, 3,57,072 businesses have been evaluated through FoSCoRIS, a fraction of the total number of food businesses operating in the industry. 

As of 2021, there were only 2,531 Food Safety Officers in charge of regulating over an estimated 10 million street vendors. States reported millions of unregistered vendors operating outside formal regulations, vastly outnumbering the current capacity for inspection.

As of 2021, there were only 2,531 Food Safety Officers in charge of regulating over an estimated 10 million street vendors. States reported millions of unregistered vendors operating outside formal regulations, vastly outnumbering the current capacity for inspection. Similarly, as of 2018, there were only 266 government labs for testing, many of which lacked the equipment required for testing toxins or pathogens. Only 13 of 62 state food labs are accredited for quality. 

Currently, efforts are underway to enhance testing capabilities, with a grant worth INR 613.67 crores released to the States and Union Territories to set up 34 microbiology laboratories, alongside mobile food testing laboratories. As of 2023-24, there were 428 operational mobile food testing laboratories. 

In 2023-24, of 1,76,317 random samples taken for testing, 33,808 were found to be non-conforming. A 2022 analysis of north Indian states found that under 1 percent of adulteration cases led to conviction, primarily due to procedural lapses in sample collection and legal complexities. For instance, around 1900 samples failed safety tests in Punjab, Haryana and Himachal between 2018 and 2021, but only 10 prosecutions were completed. Lab surveys indicate adulteration rates increasing, from around 15 percent in 2012-13 to 28.5 percent in 2018-19. These challenges highlight that while the FSSAI’s policies and regulations are in place, given the informality of the sector, on-ground implementation remains lacking.

The Way Forward

The safety of food is dependent on various actors trying to operate under diverse environmental, infrastructural and socio-political conditions. While the FSSAI initiatives aim to develop a landscape that can support vendors while maintaining food safety, it requires sustained institutional capacity and adequate public investment. 

In 2019, the budget allocated to the FSSAI amounted to merely US$ 20 million, as opposed to the United States’ annual budget of US$ 1.5 billion, Canada’s US$ 60 million and the United Kingdom’s allocation of US$ 49 million for their respective regulatory authorities.

In 2019, the budget allocated to the FSSAI amounted to merely US$ 20 million, as opposed to the United States’ annual budget of US$ 1.5 billion, Canada’s US$ 60 million and the United Kingdom’s allocation of US$ 49 million for their respective regulatory authorities. India’s food safety governance has historically prioritised food security and price stability, leading to underinvestment in regulatory infrastructure. In the past two years, the allocated budget has increased, with the estimated budget for 2024-2025 standing at INR 620 Crores. Nevertheless, the resource gap is evident in the lack of enforcement. By further increasing the investments in food security and recognising it as a priority for health outcomes, the policies put in place can be implemented effectively. 

Figure 1: FSSAI Budget FY21-FY24 (INR Crores)

Strengthening Food Safety In India S Informal Vendor Economy

Source: FSSAI

Food safety outcomes can be influenced by investing in technical and financial capabilities. By increasing budgetary allocations, several schemes such as the CSDHI, which has certified 25 hubs to date, and the ‘Food Street Project’ can be expanded. FoSCoRIS is already being employed by the FSSAI to digitise inspection records and sampling reports across states. Going forward, local authorities could integrate FoSCoRIS insights with FoSTaC training records to identify high-risk clusters and guide the phased formalisation of vendors. These can be scaled further by municipalities, using vendor collectives or self-help groups as monitoring nodes. Such strategies would shift food safety governance from top-down enforcement to a participatory model, encouraging gradual compliance through hygiene-linked incentives, simplified inspections, and public recognition, which may prove more effective in high-informality settings. 

Integration with the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme, launched in 2020 to support street vendors through micro-credit and digital inclusion, presents a policy opportunity to embed food safety incentives. Linking FoSTaC certification with access to credit, vending licenses, or digital marketplaces under SVANidhi could encourage gradual formalisation without imposing punitive costs.

Further, innovative approaches are being explored to enhance street food safety and vendor livelihoods. For instance, blockchain technology has been piloted for food traceability, improving transparency in the supply chain. Solar-powered food carts equipped with storage solutions have been introduced to promote sustainability and hygiene. Social media platforms are also increasingly influencing consumer decisions through digital reviews and feedback, which can be used as a tool to incentivise vendors to maintain high-quality standards. As cities modernise and consumer expectations shift, adopting emerging innovations can help build a safer, more inclusive street food economy that aligns with India’s health and development goals.

India’s vibrant street food sector can thrive under a food safety framework that blends inclusion with innovation. Gradual formalisation, as opposed to blanket enforcement, allows vendors to adopt standards over time through access to training, simplified certification, and availing incentives. By empowering vendors, food safety risks may be reduced while helping businesses thrive. By investing in vendor-friendly infrastructure, decentralised training, and data-backed enforcement, the government can safeguard public health without compromising livelihoods. A strengthened and inclusive regulatory framework backed by sustained investment is key to safeguarding food safety while enabling India's informal food economy to flourish.


Nimisha Chadha is a Research Assistant with the Health Initiative at the Observer Research Foundation.

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Author

Nimisha Chadha

Nimisha Chadha

Nimisha Chadha is a Research Assistant with ORF’s Centre for New Economic Diplomacy. She was previously an Associate at PATH (2023) and has a MSc ...

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