How Can I Get Export Order For Spices?
- 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 has 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.
Reasons to Start a Spice Business
- 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 corona virus 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.
Economic Contribution by Indian Spices
- 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.
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.
Investment Required to Start up the Spice Business
- 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%
- 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.
- The introduction of ISO 9001 assures the brand commodity and services to consumers.
- Thus, the business needs to obtain ISO certification.
- IEC is the first enrolment mandatory for business bodies operating in the field of import and export of goods and services from India.
- As spice powder is an edible product, FSSAI registration is a must.
Raw Materials Required
- Raw materials are the primary and most essential ingredient for the spice industry.
- Raw materials comprise of:
- Food colour
- Packing materials etc.
- Grinder machine
- Hammer mill
- Spice mill
- Masala making machine
- Industrial grinding machine etc.
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
Challenges to be faced
- Some problems to be met in this business are:
- Labour issues
- Market risk
- Packaging leakage
- Competition in the market
Branding of your Business
- 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.
- 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.