Spices Export From India

Different spices find different usage in our day to day lives. Some spices are used as appetizers, some as preservatives and some are used in Ayurveda or herbal beauty and skincare products.

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    Spices Board Of India Government of India Ministry of Commerce & Industry

    It was during 18th century that the commercial plantations of coffee were started, thanks to the success of British entrepreneurs in conquering the hostile forest terrain in south India. Coffee Board Seeds Logo Since then, Indian coffee industry has made rapid strides and earned a distinct identity in the coffee map of the world. Coffee Board Seeds Logo Coffee in India is grown under a canopy of thick natural shade in ecologically sensitive regions of the Western and Eastern Ghats. This is one of the 25 biodiversity hotspots of the world. Coffee contributes significantly to sustain the unique bio- diversity of the region and is also responsible for the socio-economic development in the remote, hilly areas.

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    Different Types of Spice Export Businesses in India

    The most common ways you can start a spice export business in India are as –

    1. Manufacturer of spices
    2. Merchant of spices 
    3. Wholesale trader of spices
    4. 3rd-party manufacturer of spices 
    5. A supplier/exporter of spices
    EXPORTS TREND

    India is the largest exporter of spice and spice items. For the year 2021-22, the country exported spices worth US$ 4,102.29 million.

    In September 2022, the exports of spices from India increased by 6.62% to US$ 330.46 million. In 2021-22, India exported 1.53 million tonnes of spices. From 2017-18 to 2021-22, the total exported quantity from India grew at a CAGR of 10.47%.

    For FY22, total volumes of chilli, cumin, turmeric and ginger exports were 0.55, 0.21, 0.15 and 0.14 million tonnes.

    During 2020-21, the export of chilli, ginger, cardamom (small & large), coriander, turmeric, celery, cumin, fennel, fenugreek, other seeds such as ajwan seed, mustard, aniseed, nutmeg & mace; other spices such as asafoetida, tamarind, etc., expanded both in value and volume as compared to 2019-20. Even the export of value-added products such as spice oils & oleoresins grew both in terms of value and volume; export of curry powder/paste increased in terms of value and export of mint products increased in terms of volume.

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    Biggest Challenges Faced by the Spice Export Business in India
    1. There is a high credit risk for distributors and mediators within the spice industry, which has made new investors apprehensive
    2. Moreover, the absence of high-quality packers and labellers in the Indian spice industry has checked foreign buyers
    3. Likewise, the lack of access to high-tech machines has made expansion difficult for small-scale businesses
    4. Cutthroat competition in the spice market has made it difficult for new players to enter the spice market.
    Benefits of Starting a Spice Export Business in India
    • Indian spices are in remarkable demand and command high credibility within the international market
    • The spice industry is a sustainable and economically viable option for raking in massive profits every year
    • Further, spice exporters receive various subsidies that permit them to send samples of spices abroad at lower costs.
    • Spice exporters also receive subsidies for creating promotional videos, brochures and other marketing campaigns.
    Documents required for spices export
    1. To export spices from India, it is important for sellers to understand the compliances and documents required to ensure a seamless export journey.

      1. The export business or brand needs to be registered with the Ministry of Corporate Affairs (MCA), which facilitates online filing of the application and requires the following:
      • Name of the business
      • Details about the partners, if any, and origin
      • Profit sharing ratio (If any)
      • Address proof

      2. FSSAI (Food Safety and Standards Authority of India) food license is required for food-related business operated in India4.

      3. GST Registration is mandatory for businesses who want to export spices from India.

      4. For any export business from India, sellers will need to obtain an Import Export Code (IEC). It is a 10-digit code given by the DGFT (Directorate General of Foreign Trade India), that grants license to importers and exporters to trade across the borders legally. To know more about IEC, read here.

      5. Certificate of Registration as Export of Spices (CRES) from the Spice Board India is also an important legal document in exporting spices globally. The board enforces guidelines to keep a check on the hygiene and quality of the Indian spices exported to the global markets. This can be obtained online.