Spice export business is profitable if you can identify the right product, target market, source and deliver quality products to your customers. Spice export business can be initiated with proper planning.
India is the largest spice-producing country after China. Our country produces around 75 of the 109 varieties of spices known to the world.
In India, spices are produced in an area of about 3 MHA with a production of about 16 m tonnes and productivity of 567 kg/ha. The major producing areas are Andhra Pradesh, Bihar, Gujarat, Karnataka, Madhya Pradesh, and Rajasthan. In India, spices are grown in both Kharif and Rabi seasons.
There is a huge demand for Indian spices in the overseas market.
What are the spices exported from India?
The mainspice export business is from India. The Indian spices are of good quality and there is a demand for the same in the international market. There are various markets for Indian spices from where you can export your spices. The most profitable spice export business depends on the market where you are exporting.
If you are exporting to more than one country then you need to know about their preferences as well as the laws for importing goods in that country. If you want to start a spice export business from India then here are some things that will help you start this business.
Find out what are the product standards in your country, what kind of certification is required, and if it can be imported into other countries. Apart from this, there are also many other factors like taste, aroma, color, and shape of the spices which can be changed according to the requirements of the customers. You can change these according to the customer requirements by using different methods like mixing or roasting etc.
There is a wide variety of spices available in India. According to your requirements and budgets you can choose any of them. Some of these include turmeric, red chilies, ginger, peppermint, black pepper, etc. There is a wide range of products available in the market today which are being imported
The spice import export business is one of the profitable businesses and can give you plenty of money. Starting a spice export business is not that much difficult. You just need to identify the local market and find out the best suppliers. There are several spices that are being exported from India like:
– Nutmeg and Mace
– Dry Ginger
Scope of export business in India
India is the world’s largest democracy. India is the second-most crowded country in the world with a population of 1.2 billion. India is also one of the fastest-growing economies in the world and the Indian economy is projected to grow at 7.4% in 2018-19 by the World Bank, making India the largest economy that is ranked 3rd in terms of GDP.
Although India has been an agrarian economy, today it has emerged as a global player in information technology and other high technology industries. And this gives us a strong reason to say that India is already a huge market for all kinds of products and services both domestic as well as foreign.
The World Trade Organisation(WTO) says that India’s share in global trade will go up by three times to 10 percent by 2030, which will be driven by exports. The Ministry of Commerce also believes that export not only increases the income of an exporter but also contributes to the economic growth and development of a country. Exports have shown a higher growth rate when compared with the overall GDP growth rate over a long period. This shows that exports have a significant role to play in economic development.
The scope of the export business in India is vast, as the country has a lot of agricultural produce and a lot of manufacturing activity. The country also produces a lot of minerals, metals, and gems which have great demand all over the world. In addition to that, there are many other products that are produced by Indian companies which are exported abroad like pharmaceutical products and chemical products.
Documents required to start an spice export business
The Indian spice import export business is one of the most profitable small business ventures in India. The spices produced in India are popular all over the world for their uniqueness in taste and aroma. There are several varieties of spices that India exports to countries around the world.
If you want to start a spice export business, first you need to understand the process and documents required. In this article, we look at the steps to be taken and documents required to start a spice export business in India.
Documents Required for Spice Export Business
The following steps need to be followed and documents need to be collected when starting a spice export business:
Choose a name for your company and get it registered with the Registrar of Companies (ROC). A Private Limited Company or One Person Company is recommended as a form of business structure for starting a spice export company in India.
Apply for Permanent Account Number (PAN) from the Income Tax Department.
Gather Tax Deduction & Collection Account Number (TAN) from (ITD) Income Tax Department.
Apply for Importer-Exporter Code (IEC) with the Regional Office-Joint Director General of Foreign Trade (DGFT).
Open a current account with any bank.
Get Membership Certificate from Spices Board of India or relevant Spice
How to start profitable spice export business in India
Spices are one of the most essential commodities used in households and restaurants in India. Therefore, there is a huge demand for spices in the country. However, it is not only the domestic market that offers good opportunities for spice traders; there are also great export business opportunities available.
But starting a spice export business is not a child’s play. It requires a lot of planning and investment to set up your business. If you have decided to enter this business, then you must follow the tips given below to spice up your export business:
• Find out which spices you want to export
• Choose a name for your company
• Get all the registration done
• Select a location for your office and warehouse
• Get all the necessary licenses and permissions from the government
• Arrange for funds
• Find reliable suppliers, distributors, dealers, and brokers
• Create awareness about your brand by marketing it through various channels
The above-mentioned tips will help you create a strong foothold in the spice export business.