We will soon see a revolution in organic farming in India as the use of science and technology in agriculture grows significantly. What are the best ways to export organic vegetables and cereals from India? This article will examine the legal requirements for setting up an organic export business in India.
What Is an Organic Product? And What Is the Purpose of Obtaining an Organic Certification?
Genetically modified organisms are not used in producing organic food, which is grown without synthetic chemicals like pesticides and fertilizers made by humans (GMOs). In addition to processed foods like crackers, drinks, and frozen meals, organic foods include fresh produce, meats, and dairy products. Your organic products can be sold in India with the help of a certification, and you can export unprocessed goods to the EU and Switzerland. Farmers, producers, distributors, exporters, and any other key agri-food stakeholders can get the organic certification. Export Organic Vegetables And Cereal From India
Legal Requirements for Starting an Organic Business in India
Due to the significant increase in demand for organic products in recent years, more and more people are attempting to export their goods. The following factors are the main causes of India’s organic industry’s rapid growth.
- Europe is in high demand for exports.
- As technology advances, the price difference will shrink
- Better e-commerce adoption and digital literacy
- Massive government support in India
- An increase in health awareness.
However, to start an organic food business in India, there are a few legal requirements that entrepreneurs need to take into account. Hence, no companies can name their product to be ‘organic’ if they don’t have the certification to prove it. It is best to contact a legal expert and go through Section 22 of the FSSAI, as it details the legal requirements for such businesses. Now, let us take a quick look at the registrations, licenses, and certifications required for such a company.
Mandatory licenses and certificates to export organic products
- First and foremost, organic food businesses in India must have the appropriate FSSAI registration.
- Businesses whose turnover does not exceed ₹12 lakh annually must have an FSSAI Registration.
- Businesses whose turnover exceeds ₹12 lakh annually, must obtain an FSSAI State License.
- In case the business generates over ₹ 20 crores annually, it must get an FSSAI Central License.
- The validity of such an FSSAI registration or license is five years, following which renewal is mandatory
- Another mandatory certificate such businesses require is the India Organic Certificate
- Companies must display this mark on their outer packaging as per the FSS- Packaging and Labelling Regulations, 2011. Further, companies may acquire this certification from either PGS-India or NPOP
- Companies can also obtain a voluntary logo from the FSSAI, which certifies that the product is organic
Other requirements for exporting organic fruits and vegetables are as follows:
- Phytosanitary certification: Certified by officials of the importing country.
- Grade/quality standards: Certification regarding the quality, maturity, size, and grade of the product to export to Europe, the US, or Japan.
- Pesticide and contaminants: Check for the tolerance of contaminants and ensure the products fall below the Maximum Residues Levels stipulated by the importing country.
- Label Certification: Discussed in detail below.
- Import clearance: Customs handling certificate that enables businesses to export goods to other nations.
Labelling Organic Products for Export in India
The lists of recommendations, directives, and requirements for the labelling of organic products or products are in Section 3 of the NPOP. Additionally, it states that the product’s labelling contains precise details about its status. The following types of labels are permitted under the classification:
Single-Ingredient- 100% Organic
They can be unprocessed raw goods or processed goods with organic ingredients. The processing-related salt and water are not included, but all other additives are. Typically, the label ‘Produce of Organic Agriculture’ is applied to the goods.
Multi-ingredient- 95% Organic
Products containing at least 95% certified organic ingredients by weight are either raw or processed. However, all other additives used in processing the final product are excluded, such as salt and water. Generally, such products are labeled organic.
Multi-ingredient- 70% Organic
These raw or processed products contain between 70%-95% certified organic ingredients by weight. Water and salt used for processing are also excluded from the labelling, but all other additives are listed. The products generally get the label Made with Organic Ingredients. Also, the products must explicitly state the number of organic products used, and cannot simply use the label Organic.
Multi-ingredient- Less than 70% Organic
The products contain fewer than 70% certified organic ingredients in raw or processed form. These goods must specify which of their ingredients are organic, but they cannot bear the word “Organic” on their packaging.
Genetic Engineering (GE) or Genetic Modification (GM) labels cannot be placed on any of the products. Additionally, they must clearly list each of their ingredients and additives, as well as the appropriate weight percent. These companies must have their goods inspected and certified either by India National Accreditation Body.
How can organic vegetables and cereal be exported from India?
- Declare your legal business status by registering.
- Ensure to acquire all necessary tax registrations, including GST and PAN.
- Acquire the Import and Export Code permitting DGFT registration.
- Set up infrastructure and speak with a customs agent to ensure customs handling and clearance.
- Locate the ideal buyer in a foreign territory, and then negotiate a deal or a contract with them.
- Create a list of every licence that is also important and analyze the country’s food laws side by side.
- Additionally, apply for FSSAI registration and NPOP for certification of organic products.
Conclusion:
Most exported organic products must carry the necessary quality and health certificates. Before exporting to any other nations, businesses must also evaluate the model specified in the International Plant Protection Convention. With the help of Vakilsearch, obtaining the FSSAI registration: https://foscos.fssai.gov.in/ will be easy for you and will further help in starting an organic products business activity. You can easily trust a legal service provider like Vakilsearch for all legal requirements because they have the best experts who can help you register and share information regarding any legal needs.
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