The spice route originated in India thousands of years ago, proving that spices were one of the most essential and ancient commodities exported from India. With more than 100 varieties of spices produced in India, there is a vast scope for Indian exporters to participate in the global trading of spices. India has tropical and subtropical weather conditions that allow the cultivation of a variety of spices, which can be used for domestic purposes and exported internationally. Also, spice cultivation is encouraged as it requires less space for cultivation and comparatively gives a higher yield than other crops. With India being the world’s largest producer and exporter of spices, there is still enormous scope for an exporter who is thinking of starting a business of spice export from India. You can choose to be a manufacturer or producer of spices, a wholesale trader of spices, a third-party manufacturer of spices, or a supplier or spice exporter.
What are the benefits of starting a business of spice export from India?
If you are an exporter looking for a viable option to make huge profits, the spice export business is right for you as this commodity is a sustainable option for export. Indian spices are in high demand and command remarkable credibility in the international market, which is one reason why Indian spice exporters can easily find customers in the international market. Once you start exporting spices, you will get acquainted with many subsidies made available to the spice exporters, allowing them to send samples of spices to the countries where they want to export their products at a lower cost. In addition to these subsidies, as a spice exporter, you will also receive a significant amount of subsidies in your marketing efforts, which include the creation of promotional videos, campaigns, publication of brochures, and other ways of marketing that you are adopting. Determine exactly how you plan to advertise your spice export business. Your marketing strategies, target market, and the type of product you are selling will all influence how much money you spend on marketing.
Some challenges that exporters face while starting a spice export business from India
- Unorganized Sector
90% of India’s spice industry players are family-owned firms, and the sector is utterly unorganized. However, the organized sector is also expanding, but slowly. The unorganized sector prevents India’s spice industry from being a premier supplier. To access a larger talent pool, the generational supply of spice cultivators has to be supplemented by new talents who have received professional training in spice cultivation. The industry’s on-the-job training approach leads to more extended training periods. It creates gaps in the availability of industry best practices and standards, especially for the segmented portion of the business.
- Human resource problems
In comparison to other nations, the Indian spice industry employs a less productive workforce. The industry’s inability to scale up its operations in this market is frequently attributed to a need for more competent labour.
- There is a lot more competition
Refrain from misjudging the competition you will encounter while establishing your spice export business in India. There can be a lot of competitors selling the same goods. If you can distinguish your products from your competitors, your business can coexist with others.
Documents required to start a business of spice export from India
The list of documents that are required for starting a spice export business are:
- Import Export Code
- Registration-cum-Membership Certificate from Spice Board
- MSME Registration
- Trademark registration
- Food Safety & Standards Authority of India license
- Passport size photograph
- Authorized dealer code from a recognized bank
- Bank certificate and statement
- Company PAN card
How to start the business of spice export from India?
- Determine the kind of business and the type of spices you want to specialize in.
- Conduct market research to know more about the spice market and build a sustainable supply chain.
- Decide on a supplier; you can buy spices from them in bulk.
- Find a suitable storage location to accommodate the spices that you have bought.
- You need suitable creditors and investors to finance your business.
- Understand the legal compliances and the various licenses and certificates required to start your spice export business.
- Find spice retailers in the countries where you want to export your product.
Suppose you are an exporter who is looking for an easy way to start the business of spice export from India. In that case, you can avail of the services offered by Amazon Global Selling program, which is facilitating exporters to expand their horizons in the international market and reach 18+ markets in 200+ countries and territories.
Suman(Kul Prasad) Pandit is an accomplished business professional and entrepreneur with a proven track record in corporate and start-up sectors in the UK and USA. With a focus on sustainable business practices and business education, Suman is highly regarded for his innovative problem-solving and commitment to excellence. His expertise and dedication make him a valuable asset for businesses seeking growth and success.