How to start spices business in India
We are crazy about Indian food, all our festivals, events and even our daily life is heavily influenced by spices. We divide by country, but the one thing that binds us is the "spices". India is known as the "Motherland of Spices", an Indian spice that is demanded worldwide for its texture, aroma, taste and medicinal properties. India is the world's largest consumer, producer and exporter of spices. We produce about 75 of the 109 varieties listed by the International Organization for Standardization and make up about half of the world's spice trade.
History and statistics of spices
Spices have always been an essential part of Indian foreign trade with foreign countries unlike Arabia, Sumer, Mesopotamia, China, Egypt as well as textiles and perfumes.
A vast history of spices is written in their place in every holy book. The Ramayana was also featured in the writings of the Roman Empire in the 1st century AD. Camel caravans regularly departed from Calicut, Goa and the East. They also transport these spices to destinations such as Carthage, Alexandria and Rome. Source
Indian spices are widely available today, but there was a time when people had to risk their existence to get access to Indian spices. From an Indian point of view, century after century it attracted both traders and invaders.
India's spice exports totaled over Rs 231 billion in FY19. The top 10 importers of spices in India between April and October 2018 were the United States, Vietnam, China, Hong Kong, Thailand, United Kingdom, United Arab Emirates, Malaysia, Bangladesh and Sri Lanka. The top 10 spices and spice products exported in terms of value include peppermint products, chili, spice oils and oleoresin, turmeric, cumin, black pepper, powder/paste, curry, cardamom seeds, other spices (tamarind, asafoetida and bay leaves). ) and garlic. The total export of various spices in 2017-18 was $3.11 billion.
The consumption of spices in an Indian household is very high; So the market is growing at the rate of Rs 40,000 crore per year. In spice business if you see so much potential that it guarantees good returns with less investment, then anyone can start a business, and home spice business is also profitable.
Indian spice exports showed a significant increase in value and volume. In the period 2018-19, a total of 11,00250 tonnes of spices and spice products were exported from the country, valued at Rs 19,505.81 billion ($2,805.50 million), up from Rs 17,980 worth 10,28,060 tonnes in 2017-18 . 7% increase in volume and 6% increase in rupee and dollar value.
How to start spice shop in India
Check out some of our successful spice packaging case studies
1. Children involved in starting a spice shop?
The Indian spice market is expected to reach around $18 billion by 2020, and the growth of this sector is expected to be driven by branded spices and spice blends. India is the largest spice producer country, producing 50 different spices that people crave for ready meals, and spice powders make their dishes more accessible. Therefore, the use of spice powders is constantly increasing and futuristic.
The powdered spice is convenient to use for preparing various delicious dishes and saves time and physical exertion. All the commercial food industries like hotels, restaurants, caterers and many others use spice powder on daily basis.
Spice powder makes it an easy and profitable business, and anyone can start this business with a small investment.
Original Investment: INR 4 Lakh to INR 5 Lakh
Required area: 500 sq ft
Win percentage: 50% to 70%
Profit: Average sales 100kg/day, 50,000 to 150,000 per month
Other additional expenses include equipment maintenance, employee salaries and marketing expenses.
2. License Terms
Since the spice powder comes under the food category, it must comply with several state government regulations, such as the following:
Business registration should be based on company size, if your Pvt. Ltd., Your Partnership