How To Start A Spice Export Business In India?

Spices are a vital part of Indian cuisine and have historically been produced and exported mostly from India. Read on for guidelines on the process of starting a profitable spice export business in India. 

How many Spice export businesses are there in India?

If you want to establish a spice business in India, there are six categories available. The following are the six categories that make up India’s spice industry:

• Spice Merchant
• Spice Wholesale agent
• Spice Importer/Exporter
• Spice Third Party Supplier
• Spice Manufacturer

Why should you start a Spice Business in India?

India has a long history of being regarded as the land of spices, and the rich and vibrant culture of this country has impacted the creation of some of the most  fragrant spices in the world. Although beginning a spice business in India might seem like an unusual idea, the benefits could be numerous and wide-ranging. The following are some benefits of running a spice business:

• Supports small scale business: The fact that a wide range of high-quality, ethically obtained spices are offered at reasonable rates is one of the spice industry’s distinctive characteristics. Because of this, the sector provides a chance for local business and is more welcoming to small businesses as well.

• Health benefits: Spices are rich in Antioxidants that are vital for maintaining good health. For example, Curcumin, a strong anti-inflammatory compound, is found in turmeric. You can easily enhance your general health by adding spices to your diet.
• Immense profit: The spice industry has some of the highest profit margins in the food industry, making it a lucrative job sector. You may generate significant margins by wisely choosing the raw materials, skilled manufacturing, and a strong logistics network.

• Demand and popularity: The demand for spices  is growing extensively as more and more people across the globe develop a passion for food and desire to try new dishes and flavours. According to reports, the market for spices, including cinnamon, cumin, and turmeric, is anticipated to surpass $16 billion by 2025.

How can I get started with a Spice business?

The following steps can help you in starting a spice export business.

• Choose a business name
• Market research
• Find out the origin of spices
• Get a trading licence
• Packing and Branding
• Promote your brand

Step #1:Choose a business name:

The very first step in launching any business is coming up with a distinctive name for your company or brand. Sometimes, it can be challenging to come up with a name that is totally unique, fits your sort of business, and is not already in use.

Step #2: Market research:

Prior to launching a spice business, you have to decide the spice you want to sell and the target market. Although India produces a wide variety of spices, it is important to determine which are more profitable and in demand on the global market. Once you’ve decided what your product is, find out which countries have a high need for it.

Step #3:Find out the origin of spices:

Many different types of spices can be found in India. Research about the production locations of the spices you want to export. The spices can be purchased from nearby farms, retailers, or you can produce it yourself.

Step #4: Get a trading licence:

You must first obtain a trade licence from the Ministry of Commerce in order to begin exporting spices from India. In order to complete this process, you must, among other things, register your company, create a bank account, and request the Directorate General of Foreign Trade (DGFT) for an Importer-Exporter Code (IEC).

Step #5: Branding  and Packing:

Your spices’ quality and its uniqueness should be reflected in your packaging and branding. Making a visually beautiful packaging design, website, social media presence, and logo can offer value and set your products apart from your competitors.

Step #6: Promote your brand:

Promote your brand to potential markets once your spices have been packaged and prepared for export. Utilising digital marketing techniques like social media sites, paid promotions, and email marketing  are some of the best ways to do this. You can advertise your products and in this way, connect with potential customers all around the world.

What documents are required for spice board registration?

In order start a Spice export business in India, you are required to submit the following copies:

• Self Attested Copy of Business GST Certificate(self declaration for not having GST, if not available)
• passport size photo
• Self Attested Copy of Company’s IE Code (Import-Export) Certificate
• Business Pan card, AOA, MOA/Partnership or incorporation certificate, LLP deed (excluding proprietorship firm)
• MSME certificate (including the name of the spice).
• PAN card copies of Owner, all directors, and all partners 
• Aadhar card copies of owner, all directors, and all partners 
• Company’s latest rental agreement or sale deed or property tax bill or lease deed or telephone bill or EB bill. 
• Confidential Bank Report in the prescribed format (duly sealed and signed by the Bank)

Valid Pollution Control Board certificate or FSSAI (must include the address of the processing unit).

Final thoughts
In conclusion, starting a spice industry offers an immense number of benefits including profitability, a long shelf life, and health benefits. If you do it right, starting a spice export business in India can be successful. You can make sure that your company is successful in the global market by adhering to these above mentioned suggestions. For more information and queries on getting the ideal spice export business plan, get in touch with Chennai Accounts.

Frequently Asked Questions (FAQs)

1. Which Indian state exports a large number of spices?
   The majority of the Indian states that produce spices are Tamil Nadu, Gujarat, Karnataka, Andhra Pradesh and Rajasthan.
2. What is an IE certificate?
   Before exporting or importing spices, any business organisation is required to obtain an Import & Export Code (IE). The IEC number, commonly called Import & Export Code, is a ten-digit Import & Export Code number issued to spice businesses by the Directorate General of Foreign Trade (DGFT).
3. Is the Spice export business profitable in India?
   

   As India has been the largest spice exporter, starting a spice or masala business can be wonderful if you start a successful company that provides customers high-quality spices along with the correct planning, and execution.

4. How long is CRES certificate valid?
   After the issuance of the CRES (Certificate of Registration as Export of Spices), it is valid for a period of three years. The certificate must be renewed at the end of the third year as its validity expires after three years. If you need help with the CRES renewal process, get in touch with Chennai Accounts right away to start the renewal process.
5. Which is the most expensive spice?
   Pure saffron is the most expensive spice per gram. Saffron, also referred to as “red gold”, is renowned for its intense rich flavour and cost around $10 per gram.