Spice Board Registration

How To Start A Spice Export Business In India

The spice route, which originated in India thousands of years ago, is proof that spices were one of our earliest exports. Today India is one of the world's biggest spice manufacturers and exporters. We make it easy for you to get into the business.

Indian Spices are sought after all around the world for their superior quality and flavour. India’s climatic conditions, which feature tropical and subtropical weather patterns, make it perfect for cultivating practically all kinds of spices. In the past decade or so, several small landowners have switched to growing spices as they take up less space and provide better returns. As a result, India continues to be the world’s largest producer, creator, and exporter of spices delivering over 75 of the world’s 109 different spices. Hence, it is quite clear that the spice export business has a lot of scope in India.

Benefits of Starting a Spice Business in India

  • Indian spices are in remarkable demand and command high credibility within the international market
  • The spice industry is a sustainable and economically viable option for raking in massive profits every year
  • Further, spice exporters receive various subsidies that permit them to send samples of spices abroad at lower costs.
  • Spice exporters also receive subsidies for creating promotional videos, brochures and other marketing campaigns.Check Here to Know More about: http://www.indianspices.com/

Biggest Challenges Faced by the Spice Export Business in India

  1. There is a high credit risk for distributors and mediators within the spice industry, which has made new investors apprehensive
  2. Moreover, the absence of high-quality packers and labellers in the Indian spice industry has checked foreign buyers
  3. Likewise, the lack of access to high-tech machines has made expansion difficult for small-scale businesses
  4. Cutthroat competition in the spice market has made it difficult for new players to enter the spice market.

Different Types of Spice Export Businesses in India

The most common ways you can start a spice export business in India are as –

  1. Manufacturer of spices
  2. Merchant of spices 
  3. Wholesale trader of spices
  4. 3rd-party manufacturer of spices 
  5. A supplier/exporter of spices

While manufacturers deal with the production of spices on a large scale, merchants and traders act as middlemen completing the logistical chain. In other words, spice manufacturers serve as the primary producers, whereas merchants help in ensuring that the spices reach the right markets and ultimate consumers. Additionally, wholesale traders ensure that retailers who package, distribute, and sell spices receive the spice produced, and, third-party manufacturers help with the production of spice in the country while suppliers help export the spices to foreign countries.

Documents Required to Start a Spice Export Business in India

  1. Incorporation certificate 
  2. Import export code
  3. Registration cum membership certificate from the spice board 
  4. Goods and service tax 
  5. MSME registration 
  6. Trademark registration 
  7. Food Safety and Standards Authority of India registration/license
  8. Passport size photo 
  9. Phytosanitary certificate 
  10. Authorized dealer code from a recognised bank
  11. Bank certificate and statement
  12. Company PAN card.

To obtain a certificate of registration as an exporter of spices or CRES, you will need the following:

  1. IEC certificate
  2. DD of INR 5,000 in favour of the spices board
  3. Confidential bank certificate
  4. GST registration certification
  5. PAN card.

You might also require a BIS certification under the ISI, wherein the specification for ground spices are as follows:

  • Chili powder ISI number: 2445-1963
  • Coriander powder ISI number: 2444-1963
  • Curry powder ISI number: 1909-1961
  • Turmeric powder ISI number: 2446-1963
  • Sampling and testing of Spices ISI number: 1997-1961.

Steps to Start a Spice Export Business in India

  • To begin with, entrepreneurs will need to determine the kind of business and the type of spices they want to specialise in. Additionally, you could opt to become a producer, wholesaler, supplier, retailer, or exporter, depending on your interest and the capital you have in hand
  • Next, you will have to conduct market research to understand more about the spice market and the spices you intend to export. This will help you build a sustainable supply chain
  • You would then have to meet with prospective suppliers and vendors. After deciding on a supplier, you can buy spices from them in bulk
  • Further, to accommodate the spices bought in bulk, you will need a suitable storage location
  • Hence, you will also need to install the right machinery and equipment to get the production facility running. The list of machinery required for starting a spice export business in India is as follows:
    1. Compressor
    2. Disintegrator
    3. Heat-sealing machine
    4. Packaging machine
    5. Roster
    6. Spice grinders and sieves
    7. Weighing scale
  • Along the way, you will also need to find suitable investors and creditors to help finance your operations. If you are in need of a spice export business plan, Vakilsearch can help formulate the perfect one
  • Similarly, it is also advisable to engage the services of legal experts such as Vakilsearch to understand the legal compliances and the different certifications required to start such a business
  • Finally, you need to locate spice retailers in the countries you wish to export to. Once you establish a good working relationship with them you can begin exporting spices.

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