How To Export Spices From India? [Investment and Business Tips]

Table of Contents:

1. How To Start Spices Export Business In India?

2. Why Start Spices Export From India?

3. Economic Contribution Of Spices Export From India

4. Medical Benefits Of Indian Spices

5. Investment Needed To Export Spices From India

6. Licenses For Export Business In India

7. Raw Materials Required For Spices Export From India

8. Making Spice Powder For Export Business

9. Challenges In Spices Export From India

10. Branding & Digital Linking For Spices Export Business In India

11. Key Takeaways

1. How To Start Spices Export Business In India?

India is one of the largest manufacturers and exporters of spices in the world. Indian spices are sought after worldwide for their appearance, flavour, and medicinal possessions. We have produced about 75 out of the 109 different varieties listed by the international organisation and about half of the worldwide traffic in spices. Indian have banked upon the history of Indian spices and herbs for thousands of years for both cooking and health purposes. Primitive Indian spices were cultivated in the gardens of Babylon in the early 8th century BC. An ancient surgeon, Susruta, used white mustard and other fragrant plants in the bed to ward off deadly spirits.

He also applied a contaminant to the operational wounds from sesame which acted as an antiseptic. Spices and herbs are mentioned in the treatment of Charak and Sushruta II. Sushruta II also used herbs and spices such as cinnamon, cardamom, ginger, turmeric, and pepper for healing purposes. They were also included in ancient herbal medicines for different health benefits. In Ayurvedic medicine, cloves and cardamom were chewed after being mixed with betel leaves to increase the flow of digestion.

2. Why Start Spices Export From India?

The big companies in India have certainly woken up and tested the flavours in the nations’ spice business. It is wise to invest in the spice business. Covid-19 seems to have accelerated the public awareness of the presence of coronavirus on the surface of suspicious sources, so people now prefer packaged items more. This has increased their value. According to the Ministry of Commerce, India's spice production is about 3 million tons, including about 50 kinds of spices. India as a country exports 10% of this amount, and its share as a world trade partner becomes 45 to 50 %.

Thus, one's chances of growth as a spice company are maximum, and the profit is significant. Due to technological advancement, manufacturers can supply superior quality spices around the world. The scope of the Indian spice market in terms of application is not limited to taste, seasoning, colouring. The cosmetic industry is one of the most sought after items in the Indian industry. The market has potential growth due to different applications.

3. Economic Contribution Of Spices Export From India

Indian food spices are used to enhance the taste and flavour of Indian food. Spices like garam masala, cinnamon, cardamom, etc. are used to constitute charm, flavour, and aroma in Indian food. According to the Spice Board, the Indian government firm that promotes Indian spices mass-produces about 30% of the world’s pepper, 36% of the world’s ginger, and 90% of turmeric.

Kerala is the largest producer in all the states in India when it comes to spices, as the state produces about 95% of the population, cardamom 55%, and ginger 25%. Andhra Pradesh tops the country in the manufacturing of chilies and turmeric, contributing 50% and 58% of the whole produce correspondingly. Rajasthan is the bulkiest producer of coriander, cumin, and fenugreek and the statistics are 3%, 56%, and 87% respectively.

4. Medical Benefits Of Indian Spices

Spices are being harnessed in Ayurveda and medicine to treat many ailments such as fetal diseases, gastric problems, hepatic disorders, contagious diseases, and blood disorders. In Ayurveda, cinnamon is seen as a flavour as well as a prescription. It is used in Indian Ayurvedic medicine against various ailments like flu, gas, bronchitis, etc. As part of the bark of the cinnamon tree, this powder form is used in Indian Ayurveda besides Chinese medicines as an anti-diabetic.

Methi has been promoted as a herbal remedy in Indian Ayurvedic medicine. Fenugreek has healing qualities, including the management of metabolic and nutritional disorders such as diabetes. It hampers constipation, in addition to digestive problems, triggered by stomach ulcers, and is also potent in curing gastritis and indigestion. Turmeric is known for strengthening and warming the whole body.

Turmeric helps in treating arthritis and has antioxidant properties as well. Anyone who goes through mild joint pain can also consume this spice. Turmeric increases the production of important microorganisms in the liver that detoxify our blood. It also contains moderate levels of insulin and enhances the effectiveness of medications used to treat diabetes. Turmeric has natural germicidal and aseptic properties.

Also read: Spices Manufacturers in India

5. Investment Needed To Export Spices From India

The Indian spice market is expected to reach around 16 billion by 2020. India is a country that produces 50 kinds of spices, people are looking for readymade food and spice powder, making their cuisine more palatable. So the use of spice powder is increasing continuously and vigorously.

• Primary Investment: 60,000 to 100000 INR.
• Area Needed: 300 square Yard.
• Profit%: 50%-80%

6. Licenses For Export Business In India

Spice powder is part of the food department, so it has to abide by many rules and regulations of the state government. The enrolment of the firm should be based on the expertise of the business. If it is a private limited or partnership or sole individual company, the firm will be enlisted accordingly. GST enrolment is also important for getting a GST number, which is essential.

1- ISO Certification

The introduction of ISO 9001 assures the brand commodity and services to consumers. Thus, the business needs to obtain ISO certification.

2- IEC Code

IEC is the first enrolment mandatory for business bodies operating in the field of import and export of goods and services from India.

3- FSSAI Registration

As spice powder is an edible product, FSSAI registration is a must.

7. Raw Materials Required For Spices Export From India

To start spice business in India, raw materials are the primary and most essential ingredient for the spice industry. Raw materials comprise of:

• Coriander
• Cumin
• Fenugreek
• Pepper
• Methi Leaves
• Cardamom
• Cinnamon
• Mustard
• Food colour
• Turmeric
• Corrugated Cartons
• Mixed Powder
• Chilli
• Fennel Seeds
• Poppy Seeds
• Packing materials etc.

8. Making Spice Powder For Export Business

This is a list of machinery required for starting spices export from India:

1. Grinder machine
2. Compressor
3. Disintegrator
4. Heat Sealing Machine
5. Hammermill
6. Spice mill
7. Packaging Machine
8. Roster
9. Sieves
10. Spice Grinder
11. Masala making machine
12. Weighing Scale
13. Industrial grinding machine etc.

Also Read: Best Salt Brands in India

9. Challenges In Spices Export From India

Some problems to be met in this business are: Labour Issues, Market Risk, Packaging Leakage, Competition In The Market along with the trouble of where to sell- When your product is ready, you have to sell it to make a profit. This is the ultimate step. Places to sell your product include: Wholesale market, Local market, Online, and Export.

10. Branding & Digital Linking For Spices Export Business In India

Apart from having a remarkable logo with recall value, adequate branding enhances the value of a company, provides direction and inspiration to employees, and makes it easier to acquire new customers. Digital media platforms like Facebook, Twitter, Instagram, and Linkedin are on the rise.

Utilising digital marketing, one can reach a huge audience if they leverage the resources properly. You can save money and attain more consumers for less money than conventional marketing methods. Let your audience know and let them know you personally which can help build brand loyalty.

11. Key Takeaways

The spice business may have originated in an ancient time, but this does not mean that modern technology is not contributing to its continuous development. Ready to cook spices are gaining popularity among consumers due to their time and effort saving features. These pre-blending packages provide consistency in food flavour with minimal effort.

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FAQs

Q. Is spice export business profitable in India?

Ans- Yes, spices export from India is one of the most profitable businesses in India. India is the largest producer and exporter of spices across the world. Any individual can start a small, medium or large scaled spice business depending on their investing capacity.

Q. Which spices are exported from India?

Ans- India primarily exports the following spices in large quantities:

• Fennel
• Fenugreek
• Celery
• Mace Garlic
• Cumin
• Vanilla
• Nutmeg
• Pepper
• Ginger
• Cardamom
• Coriander
• Tamarind
• Chilli
• Turmeric

Q. How can I start my own spice business?

Ans- This small-scale investment needs to be met with the following criteria, to begin:

1. Standard Investment- 50,000 Rupees to 1,00,000 Rupees
2. Premises Area- 250 sq yard
3. Profit Margin- 50% to 70% Monthly
4. Cash Flow- Example (100Kg /Day): 50000 to 150000 Monthly

Q. What is required to export spices from India?

Ans- If you want to start spices export business in India, then you must have a legitimate certificate of registration as an exporter of spices(CRES), that is issued by the Indian spices board.

Q. Which country is the king of spices?

Ans- India is known as the 'King of Spices' due to Dharampal Gulati (Founder of MDH Spices business) which is a multi-crore empire in 2021.

Q. Which country imports spices from India?

Ans- The Top 10 importers of Indian spices in the past 4 years are:

• USA
• Sri Lanka
• UAE
• Hong Kong
• Malaysia
• UK
• Thailand
• Bangladesh
• China

Q- Which country is the largest exporter of spices in the world?

Ans- India has been hailed as the largest exporter of spices worldwide.

Q- What are the 7 Indian Spices?

Ans- The top 7 Indian spices are:

• Turmeric
• Cumin
• Fenugreek
• Coriander
• Clove
• Cinnamon
• Cardamom

Q- Is the spice business profitable?

Ans- The use of spices in Indian families is plentiful, so the market is growing at Rs 40,000 crore annually. One can see so much potential in spice businesses by ensuring good returns through low investment.

Q- What is the most sold spice in India?

Ans- Pepper is the most sold spice in all of India. It's anti-biotic and weight loss properties make it amongst the most consumed spice in India.

Q- Can I sell spices online?

Ans- One can sell their spice products on Amazon, Flipkart, etc.

Q- Which states in India produce spices?

Ans- The states in India which produce some of the best export quality spices are:

1. Kerala
2. Rajasthan
3. Madhya Pradesh
4. Andhra Pradesh
5. Gujarat
6. Karnataka
7. Goa