The Food Contract Manufacturing Agreement is essential for food brands in India looking to outsource their production to third-party manufacturers. This document is particularly relevant when companies want to scale production without investing in their own manufacturing facilities, or when specialized manufacturing capabilities are required. The agreement must comply with Indian food safety regulations, particularly the Food Safety and Standards Act, 2006, and related FSSAI guidelines. It covers crucial aspects such as manufacturing standards, quality control procedures, raw material specifications, and regulatory compliance requirements. The document is typically used when establishing new manufacturing partnerships or formalizing existing manufacturing arrangements in the Indian food industry, ensuring both parties understand their obligations regarding food safety, quality standards, and commercial terms.

1. Parties: Identification of the principal company (brand owner) and the contract manufacturer

2. Background: Context of the agreement, including the principal's business and need for contract manufacturing services

3. Definitions: Detailed definitions of technical terms, industry-specific terminology, and key concepts used in the agreement

4. Scope of Services: Detailed description of manufacturing services, including production requirements and capacity commitments

5. Manufacturing Standards and Compliance: Requirements for compliance with FSSAI regulations and other applicable food safety standards

6. Quality Control and Testing: Quality assurance procedures, testing protocols, and acceptance criteria for manufactured products

7. Supply of Materials: Terms regarding the procurement, supply, and management of raw materials and packaging

8. Production Schedule and Forecasting: Terms for production planning, forecasting requirements, and delivery schedules

9. Pricing and Payment Terms: Manufacturing costs, payment schedules, and terms for price adjustments

10. Intellectual Property Rights: Protection of recipes, formulations, trademarks, and other intellectual property

11. Confidentiality: Protection of trade secrets, proprietary information, and business knowledge

12. Warranties and Representations: Warranties regarding manufacturing capabilities, compliance, and product quality

13. Liability and Indemnification: Allocation of risks and responsibilities between parties

14. Term and Termination: Duration of agreement, renewal terms, and termination conditions

15. Force Majeure: Provisions for unforeseen circumstances affecting manufacturing capabilities

16. Governing Law and Dispute Resolution: Applicable law and mechanisms for resolving disputes

17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment rights