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How do I start a spice export business in India?

How do I start a spice export business in India

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  Posted on April 24, 2021

In this Article, We Cover following topics

  • Spice Export Business in India.
  • Different ways to Start Spice Export Businesses in India.
  • Following are the required formalities to start a spice export business.
  • Documents needed to start a Spice Export Business in India.[/box]

Starting a Spice Export Business in India – a profitable Business

India is popularly known as the spice bowl of the world because of the spice route, which sprang up in India thousands of years ago. And this is considered as a proof that spices were one of our products which were exported earlier. Even in the present-day market, Indian is one of the major exporters of spices, and the spice export business is one that flourishes within the country. 

Some of the Indian spices include pepper, turmeric, mint, ginger, cumin, oregano, curry leaf,  tamarind, chilli, tejpat and so on that are still having great demand all over the world. Considering the figures, registering the spice export business is increasing and its annual growth rate is 9.4%. Starting spice export business in India holds the same registering procedure as other import and export businesses that registered in India.

Like with any other business, this spice export business also requires thorough planning, marketing strategy and a business plan that helps to develop your spice export business. In this article, we will be discussing the complete details needed to start a spice export business in India.

Spice Export Business in India

Indian Spices are in demand all around the world for their strong flavor and superior quality. Being the world’s largest consumers of spices, we, Indians require a large variety of flavors and spices to make our food delicious and nourish ourselves. Several small landowners and farmers have preferred cultivating spices as these crops take up less space and yield better returns. Consequently, India is the world’s largest spice producer, cultivator, which delivers over 75 of the world’s 109 different spices. 

The climatic conditions of India that feature both tropical and subtropical weather patterns, makes the soil perfect to grow all types of spices. Under the domain of the Indian Spice Board, it has over five spices, with almost all states, growing one spice or the other. Therefore, it is quite clear that starting a spice export business in India has a lot of scopes all around the world.

Different ways to Start Spice Export Businesses in India

Following are the most common ways to start a spice export business are:

  • Spices Merchant 
  • Spices Manufacturer 
  • Spices Wholesale Trader
  • Spices 3rd-Party Manufacturer
  • Spices provider Exporter

The spice manufacturers’ work with the production of spices on a large volume and it is considered as Large Scale Business whereas the merchants and traders work as middlemen completing the supply chain of the spices. Therefore, spice manufacturers act as the primary producers of spices, whereas traders and merchants help in assuring the spices product reaches the right market place. Wholesale Traders are the people who are responsible for ensuring that the spices are properly reached to the retailers for packaging, distributing, and selling the product all over the required places. While Third-party manufacturers work with the production of spice and the suppliers work with exporting part of spices to foreign countries depending on the demand and market.

Following are the required formalities to start a spice export business:

Any individual, who is planning to start a spice export business, first has to register your business under MCA by any of the following options like firm, Private Limited Company, proprietorship and so on.

Next step is to obtain the IEC (Import Export Code), issued by DGFT (Directorate General of Foreign Trade). It is a 10 digit number and it is compulsory for every type of business that deals with import and export of goods. It can be applied online. 

Spice Registration Certificate: Obtaining the registration certificate is the third step to start a spice export business. Yes! If you are planning to start an export business from India, then it is compulsory to obtain a valid certificate of registration as exporter of spices(CRES). This valid certificate is issued by Indian spices board. To obtain this you have to register first through CRES registration form online. To get a Certificate of Registration as an Exporter of Spices, or CRES, you have to submit the following documents:

  • PAN card
  • IEC certificate
  • Confidential Bank Certificate
  • DD worth INR 5,000 in favor of the Indian Spices Board
  • GST tax registration certification
  • Scanned passport size photo of CEO/authorized person of organization with white background.

Phytosanitary Certificate:

Phytosanitary Certificate is another mandatory certificate like CRES. This official document is used to test the shipments of plants or plant products, assuring that these plant products are free from pests and safe to use. This certificate is granted by the exporting country’s Department of agriculture, horticulture, food or water resources.

 Authorized Dealer (AD) Code:

Authorized Dealer Code is a letter issued by the authorized bank, displays the bank’s authorized dealer code of the business and this code is a must, when you start an operation or a business with a new port. Authorized Dealer Code is a 14 digit number and to obtain this code, first you need to open a current account in an authorized bank. Then, AD code registration is to be done with the custom department. To obtain the AD code, you should have the following documents:

  • Pan card
  • Voter ID card
  • Bank certificate
  • Bank statement
  • IEC copy
  • ITR
  • Sales Tax return
  • Sales Tax copy
  • Sales Tax + CST
  • Balance sheet
  • Registration charges for each port registration is INR 3000.00 plus service tax
  • AD code letter
  • Stamped blank letterhead

Documents needed to Start a Spice Export Business in India

To start a Spice Export Business in India, you must have the following documents

  • Incorporation Certificate or IOC for the spice business from the Registrar of Companies
  • Import Export Code issued from the Director-General of Foreign Trade
  • Membership Certificate cum Registration from the Indian Spice Board 
  • MSME registration
  • Goods and Service Tax registration for all kind of tax purposes
  • Trademark registration of your brand to protect your brand in overseas markets
  • Food Safety and Standard Authority of India or FSSAI registration or license certificate
  • Passport size photo 
  • Authorized Dealer Code from a authorized bank
  • Phytosanitary Certificate 
  • Company PAN card
  • Bank certificate and statement
  • BIS certification under the ISI, in which the specification for ground spices are as given below:
    • Turmeric powder ISI number: 2446-1963
    • Chili powder ISI number: 2445-1963
    • Curry powder ISI number: 1909-1961
    • Coriander powder ISI number: 2444-1963
    • Sampling and testing of Spices ISI number: 1997-1961
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