How To Start Onion Exports From India ?

Onion Exports: A Promising Trade

How To Start Onion Exports From India ? In the world of international trade, onions are a hidden gem waiting to be discovered. This common vegetable has an interesting story, packed with flavors, benefits, and endless possibilities. As we dive into the onion export business, let’s uncover the layers of the export process and discover why exporting onions is such a promising venture.

Why to choose onions for exports

Have you ever wondered how a simple vegetable could be a stepping stone to a successful international onion trading business? Let’s take a quick look at why onions are more than just a kitchen staple; they’re a passport to profitable exports.

Government Benefit and Support

When it comes to exporting onions, there’s more than meets the eye. Government incentives are in your corner. The perks and benefits are lined up, ready to elevate your export game.

• Duty Drawback

Exporting onions not only involves exporting the products but it also brings advantages. You receive a 0.15% duty drawback, which is directly added to your account without any extra effort needed. In this process, a Customs House Agent (CHA) helps you with the shipping paperwork, making sure everything goes smoothly and efficiently.

• RODTEP: Remission of Duties and Taxes on Exported Products

The Remission of Duties and Taxes on Exported Products provides a great advantage of either 2% or Rs 1.2 per kg. To understand better, picture exporting goods worth 10,00,000. You could get a benefit of Rs 20,000 or Rs 1.5 per kg, whichever is less.

• Interest Equalization Scheme on Pre & Post Shipment Export Credit

The “Interest Equalization Scheme.” While it’s aimed at manufacturers (not merchant exporters), its effect is considerable. If you get a loan at a 10% interest rate, the government covers a significant 5% of that interest. So, you only have to pay the remaining 5% interest, which eases the financial burden on your export ventures.

How to source onion for exports

If you’re new to exporting, finding onion suppliers for international markets may look overwhelming. But don’t worry; you have numerous options available. First, let’s take a look at the topmost onion-producing states.

Top states that produce export-quality onions

When it comes to export-quality onions, certain Indian states stand out as major sources.

• Maharashtra, Nashik

• Gujarat

• Karnataka

• Madhya Pradesh

Procurement Options: Mandis, Farmers, and Traders

As an onion trader, you’ve got three smart ways to get your hands on onions for export:

• Mandi: Mandis are big markets where a large amount of quantity onions are bought and sold. You can pick onions from these markets, where farmers and sellers meet. It’s like a one-stop onion shop!

• Direct from Farmers: You can also buy onions straight/directly from the farmers. It’s a friendly and affordable deal that helps both of you. You get fresh onions, and they get a good price. No agent is involved here!

• Onion Traders: The traders are onion experts who know when to buy onions at a low price and when to sell them at a higher price. They’ve got the timing just right!

Remember, each way has its own perks. Mandis offer lots of onions; purchasing directly from farmers is reliable and trustworthy; and onion traders are like onion masters who can guide you in getting the best deal.

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Understanding packing for onions

When it comes to packing onions, ensuring their freshness and safety is key. Mesh bags are the preferred choice, available in sizes like 5kg, 10kg, 15kg, and 20kg. Remember, the specific weight depends on the buyer’s requirements and the destination country, so tailor your packaging accordingly to ensure your onions arrive in top-notch condition.
Here are the packing standards followed:

S.No	Importing nation	Pack size
1	Malaysia and Indonesia	10 kg
2	Sri Lanka	25 kg
3	Singapore	8 kg
4	Philippines	20 kg
5	Gulf countries	5 Kg, 10 Kg, 15 Kg and 20 Kg

Here are the sizes of onions required by different countries.

S.No	Country	Size(mm)
1	Middle East and Gulf(Dubai, Sharjah, Doha, Muscat,Bahrain, Dammam, Saudi Arabia, Kuwait)	40 – 60
2	Malaysia, Singapore, Port Kelang & African Ports	25 – 30
3	Sri Lanka	25 – 30
4	Bangladesh, Pakistan & Nepal	25 – 30
5	Europe	60 – 70
6	Japan	60 – 70

Tip to find the best supplier for onion exports

Here’s a simple tip to help you choose the best one: Think about quality and dependability.

Each choice has its good points. Mandis can offer lots of variety, farmers can give you super fresh onions, and traders know the market well. But what matters most is the onions’ quality and whether the supplier can be trusted. Check if they always have good onions and if they can keep sending them. It might even be smart to work with a few different suppliers to always have a good supply of top-quality onions for your exports.

How to setup logistics for exports

Exporting onions requires a harmonious logistics setup to ensure your produce reaches its destination in favorable condition. Here’s how you can set up your logistics game for success:

Choose a good freight forwarder

Finding the correct freight forwarder for shipping perishable goods like onions is a game-changer. Here’s a quick guide to help you to nail down the ideal fit:

• Efficient Team: Choose a forwarder with a capable team that ensures timely shipments and hassle-free logistics for your orders.

• Customer Priority: Select a forwarder that values your needs. They should provide helpful advice and guide you through shipping difficulties.

• Quick Pricing, Great Service: Seek a forwarder that offers fast, timely, and accurate pricing alongside excellent service. Your onions are in good hands.

• Strong Online Presence: A forwarder with positive online reviews is a sign of dependability and trustworthiness.

At the forefront of this game is Klick Cargo www.klickcargo.com. With our perishable logistics expertise, skilled team, quick pricing, and solid recommendations, we’re ready to elevate your export venture. Set up a pricing system to quote buyers

After setting up your suppliers and logistics, it’s important to establish a system that enables you to efficiently provide CIF (cost, insurance, freight) quotes to potential buyers. Moreover, consider calling the Klick Cargo www.klickcargo.com for instant CIF quotes and real-time vessel schedules, streamlining deal finalization. Keep in mind that a clear pricing strategy not only enhances competitiveness but also fosters buyer trust, boosting the likelihood of them selecting your products over alternatives.

Reefer Containers: Safeguarding Onion Freshness During Export

When it comes to exporting onions, the role of reefer containers is most important. These specialized containers maintain a controlled environmental conditions, ensuring the freshness and quality of your onions throughout their journey. With temperature and humidity controls, reefer containers create an ideal atmosphere, preventing spoilage and preserving your produce’s appeal.

Here is the ideal temperature, humidity & ventilation you can opt for exports:

Temperature	Humidity	ventilation
5°C	30ºF	15 CMH

Klick Cargo offers specialized perishable logistics and easily finds rates and schedules for your shipments. Time is crucial for perishable goods, and our user-friendly cloud-based solution puts you in charge of your timing.

Setup company for exports in India

Now that supply and logistics are set up, it’s time to establish your company. Register your business and comply with legal documentations. These initial steps lay the foundation for your onion export journey.

Documents required to set up a company

Company Registration: To conduct export activities, it is crucial to register your business as an export company with the relevant government authorities. This step ensures that your business has a legal identity. You can register your company as an LLP, PVT LTD, proprietorship, or partnership based on your business plan.
IEC: To engage in import-export transactions, you must obtain an IEC from the Directorate General of Foreign Trade (DGFT). This code is a unique 10-digit identifier for your company and is mandatory for all such transactions. It enables customs authorities to recognize your company.
Tax Identification Number (TIN) or Employer Identification Number (EIN): These are unique identification numbers for tax purposes. However, it is not necessary for every business.
Trade License: If applicable, a trade license might be needed for specific export activities.
GST: Enroll your export business under the Goods and Services Tax (GST) system. It is crucial to follow tax rules and access tax advantages.

Documents required for onion export from India

Below mentioned documents required to export onion from India.

Invoice: The backbone of your export transaction is the invoice, which spells out onion details, pricing, and parties involved.
Packing List: An itemized list detailing onion quantities, weights, and packaging ensures accurate shipments.
Certificate of Origin: The certificate of origin establishes the onions’ source, a vital factor for customs clearance and tariff assessment.
Phytosanitary Certificate: A phytosanitary certificate is issued by agricultural authorities; it confirms the health of your onions, complying with import regulations.
Bill of Lading (B/L): A receipt for goods and a carriage contract, the Bill of Lading plays a central role in the export process.
Bank Realization Certification (BRC): Post-payment, this certificate affirms the realization of foreign exchange from your export venture. This is a post shipment document, hence it doesn’t stop you from exporting goods; however, it’s a closure of a foreign transaction.
Port registration: This includes AD code registration, Icegate registration, and duty drawback registration. These are the 3 registrations you need to get for the successful completion of port registration.
KYC: Registering your export shipment at the designated port ensures proper processing and clearance by customs. requires the submission of necessary shipment documents. This is different from AD code registration.
APEDA / RCMC: RCMC (Registration Cum Membership Certificate) is issued by Indian Export Promotion Councils or Commodity Boards. It proves your registration as an exporter with a specific council or board. This certificate is essential for accessing export benefits, incentives, and schemes provided by the Indian government.

Find a buyer for onions in international market

Finding buyers in the international market for onions is vital to growing your export business. It opens doors to new markets and opportunities for your products.

Top importing countries of Onion from India

Sr.No	Country	Qty (in MT)	Value (in Rs. Lacs)
1	Bangladesh Pr	671,125.27	89,728.81
2	Malaysia	393,461.34	84,877.95
3	UAE	403,219.30	78,477.43
4	Sri Lanka Dsr	270,501.29	45,193.05
5	Nepal	174,764.16	26,771.43
6	Indonesia	116,695.71	22,184.63
7	Qatar	79,826.94	16,878.87
8	Vietnam Soc Rep	75,909.41	14,131.47
9	Oman	61,989.92	12,786.45
10	Kuwait	45,399.12	9,626.44
	Total	2,292,892.46	400,656.53

Conclusion

The onion export journey presents immense opportunities for businesses to tap into global market demand. With the right understanding of benefits, sourcing strategies, logistics, and buyer connections, exporters can navigate this venture successfully.

Klick Cargo offers dependable freight services globally, ensuring seamless transportation tailored to the needs of perishable exporters. Our extensive network of over 100 fleet locations across India underscores our commitment to bolstering your onion export initiatives.

And there’s more; our app connects you to a vast array of reliable onion suppliers. Identifying suitable suppliers and obtaining competitive price quotes becomes effortlessly efficient, empowering you to source top-notch products with ease.

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