How to Start Spice Export Business in India

spice export business

India is also known as the bowl of spices of the world. The spice avenue, which started in India thousands of years ago, is proof that spice is India’s ancient export. Even in the 21st century, India is the major exporter of spices, and the business of spice export blooms in the country. However, similar to any other business, the spice export business too needs a good strategy and the development of a spice export business plan.

Contemplating on how to start a spice export business in India? Read on to get answers.

Scope of spice export in India

Indian spices are in demand all around the world because of their superior quality and flavor. India is also the world's largest spice consumer and spends 78.7 INR per person per month on spices. On average, Indian households require a large variety of flavors and spices to maintain their variety of dishes. Several small landowners in the country have switched to spice cultivation as it take less land and provides high returns.

This is the reason India is the largest spice exporter and producer in the world. India exports 75 of the world’s 109 various spices. The country has the perfect weather for all varieties of spices - featuring both tropical and subtropical conditions/patterns. Hence, it is absolutely clear that the spice export business in India has a lot of scope.

Various spice export businesses in India

There are many roles that you can assume but these are some most common ways you can start a business initiative.

  1. Spices Manufacturer
  2. Spices Merchant
  3. Wholesale Trader
  4. Spices 3rd-Party Manufacturer
  5. Spices Supplier Exporter

The production of spices on a large scale is managed by manufacturers. Merchants and traders act as middlemen because they are responsible for completing the logistic chain. Hence, manufacturers are major spice producers, whereas merchants are responsible for the products reaching the right marketplace. Wholesalers&traders ensure that retailers package, disburse and sell spices all over the target markets. Production of spices in the country is under third-party manufacturers; spice suppliers are responsible for supplying spices outside the country.

Data of spice export in India

India exported 1.28 million tonnes of spices in the financial year 2017-2018 worth about INR 17,929.5 crores.This is a compelling growth of 8% as compared to the export data from the previous year 2016, India exported 9.47 lakh tonnes which is worth about INR 17,660 crores in the year 2016. The spice value had increased to over 231 billion INR in India in the financial year 2019. Some of the major countries that import spices from India are mentioned below.

  1. United States of America
  2. China
  3. Vietnam
  4. Hong Kong
  5. Bangladesh

These are some major spices that were in demand during 2019

  1. Chilli
  2. Mint
  3. Cumin
  4. Turmeric
  5. Pepper
  6. Curry Powder
  7. Cardamom

Challenges in export business in India

You can face labor issues in India due to the health problems that came up because of the prolonged exposure to the aromatic repulsiveness of spices. There is always credit risk of distributors and mediators within the spice exporting business. You can also face difficulty finding high-quality packers which can create problems to attract foreign buyers. You can lack access to high-tech machines which make expansion difficult. You will face high competition in the markets which makes it difficult to keep yourself ahead.

Benefits of starting a spice business India

  • India is the bowl of spices and the demand for Indian spices around the world is high. So, there are better opportunities.
  • It is proven that the spice industry is a sustainable and economically viable option that brings billions per year.
  • Spices Board of India is working to develop the export of spices in India
  • Spices exporters receive various subsidies to export samples to foreign countries at a lower cost
  • Spice export business also get subsidies for creating advertising videos, brochures, and other marketing campaigns

Procedure to start spice export business in India

The first step is to procure the necessary certificates.

  1. Incorporation Certificate for the business
  2. Import Export Code from the Director-General of Foreign Trade(DGFT)
  3. Registration cum Membership Certificate from the Spice Board of India
  4. Goods and Service Tax registration for tax purposes
  5. MSME registration
  6. Trademark registration to protect your brand
  7. Food Safety and Standard Authority of India registration or license
  8. Passport size photo
  9. Phytosanitary Certificate
  10. Authorized Dealer Code from a recognised bank
  11. Bank certificate and statement
  12. You need to get company PAN card

You may be also required BIS certification under the ISI mark scheme. To obtain the certificate as a spice exporter, you will need the following

  1. IEC certificate
  2. DD worth INR 5,000 in favour of the Spices Board
  3. Confidential Bank Certificate.
  4. GST tax registration certification
  5. PAN card

How to start spices export from India

Spice export business is not easy to start as you have already read the challenges above and if you want to skip those challenges then is perfect for you. is the world's first B2B procurement platform for food products and agri-commodities. You can start spices export from India through this platform easily and cost effectively without making a phone call or sending out an email.

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