India is known worldwide for its spices. For thousands of years now Indians have been using spices for both culinary and health purposes. Today, Indian spices are considered best in the global market because of their exquisite aroma, texture, taste and medicinal value. Indian spices being most sought after globally and their high production in the country makes India the largest exporter of spices. India is known as the land of spices which makes Spice powder making Business a profitable business option in our country depending on the investment capacity of an individual.
Key Highlights of Spice Export from India
- Spices of worth US$ 3.65 billion were exported from the country in FY20.
- Spices of worth US$ 2.80 billion and US$ 2.78 billion were exported from India in FY19 and FY18 respectively.
- Among the top importers of Indian spices are countries like US, China, Vietnam, Hong Kong, Bangladesh, Thailand, UK, UAE, Malaysia and Sri Lanka.
- The top exported spices and spice products in terms of value were chilli, mint products, cumin, turmeric, pepper and other spices like Asafoetida, garlic etc.
- By the end of year 2019 ginger export showed the highest growth followed by cardamom and cumin.
Some Interesting Facts about Indian Spices
Increased Demand of Indian Spices post Covid-19
Since the whole world came under the grip of deadly coronavirus, a lot of talks are being heard about ones immunity. It is being said by experts that those with good immunity power won’t be affected by coronavirus. As the virus still continues to haunt lives across the world, people are working on ways to improve their immune system so as to save themselves from the deadly disease.
Among various different ways of improving immunity as being suggested by health experts across the globe, adding spices to our daily food is one way of warding off coronavirus. This advice of adding spices to our food increased the export of Indian spices by 23 per cent in June 2020. Traditionally spices like pepper, cardamom, ginger, turmeric, coriander, cumin and mint products among other spices are the major spices shipped abroad.
Our honorable Prime Minister also acknowledged the increasing demand of Indian spices amid the outbreak of Coronavirus. The increased export of Indian spices amid Covid-19 shows that the whole world is benefiting from the use of Indian spices. With the increase in demand of Indian spices, the opportunity of starting a spice powder making business in India also increases. Further in this blog we shall learn about the procedure of starting a Spice Powder making business in India.
Registration and License for Starting a Spice Powder Making Business in India
Following registrations and licenses are required to start a spice powder making business in India:
Firm Registration : In order to start spice powder making business first step is to get the company registered based upon the scale of the business whether the company is Pvt. Ltd. Or partnership or single person company, registration is done accordingly. GST Registration is also a must to gain GST number. In case the company is SME, then companies can register themselves and get subsidies from the state government.
Trade License : The next step after company’s registration is to obtain trade license which gives permission to the applicant to commence a particular trade or business in a particular area. Therefore, it is essential to obtain trade license from local authorities.
Udyam/ MSME Registration : Registering the spice powder making business with Udyam registration/MSME Registration helps the business owner to get the facility and subsidy from the state government.
Trade Mark Registration : Before starting any business it is required to design a unique logo for the company. Company’s name and logo plays a crucial role in deciding the future of the business. Therefore, it becomes very important to preserve your brand name and logo from misuse or duplication by others. For securing the logo of the brand one need to apply for trademark and obtain a Trademark Registration number.
FSSAI Registration : Since spice powder is a food item it is essential to get a food operation license or FSSAI Registration to start a spice powder making business.
IEC Code : In order to export spice powder, IEC (Import Export Code) is required. IEC Code is a 10 digit number issued by DGFT (Directorate General of Foreign Trade).
BIS Certification : ISO certification from Bureau of Indian Standards is required, for example
| Chilli powder is registered under | ISI-2445-1963 |
| Coriander is certified under | ISI-2444-1963 |
| Turmeric powder is registered under | ISI-2446-1963 |
AGMARK Certification : AGMARK certification approved by the Directorate of Marketing and Inspection, a state government approved agency is required to start a spice powder making business. AGMARK labs test and certify agricultural products on their quality across the country.
Indian Spice Market
The Indian spice market is estimated at worth INR 40,000 crore annually. Apart from large domestic demand of spices India exports around 52 different spices. Spices are an essential ingredient of cooking in India and most of the Indian dishes require whole lot of spices. The demand of spices is ever increasing in both domestic and international market. For any individual looking for profitable business opportunities can start with spice powder making business. One can start this business with minimal investment and gradually increase the market and earn more profit. The dominance of India over global spice market is proven by the fact that India is world’s largest producer, consumer and exporter of spices. Out of 109 varieties of spices listed by the International Organization for Standardization, 75 are produced in India. Moreover, our country accounts for half of the global trading in spices. The key spices produced in India include pepper, cardamom, ginger, coriander, chilli, cumin, turmeric, ajvain, clove, tamarind and many others. Over the years the Indian government has been actively promoting spice exports through various initiatives, one of them being setting up of Spice Parks. Spice Parks provide common processing facilities to both producers and exporters. It is the Spices Board of India that works towards the development and promotion of Indian spices in global market. The board also participates in major international fairs and food exhibitions in order to promote Indian spices at international level. Many domestic events are also organised by the Board to promote spice powder making business in the country.
Initial Costing involved in starting a Spice Powder Making Business
Spice powder is required in every house and every restaurant across the world that prepares Indian dish. Powdered spices are convenient to use and saves the time while preparing different a variety of dishes. For those wishing to start a business that requires less investment, starting a spice powder making business can turn out be a profitable idea as spices are in great demand across the world. One can start with a spice powder business with a basic investment of 50,000 INR to 1,00,000 INR. Other additional expenses to start a business will include employee salaries, marketing cost and maintenance of equipment. Initially one can start this business from his home as well and gradually increase the size of the processing unit.
Raw Material Required to Start a Spice Business
The basic ingredients required to start with a spice power making business are underground spices. Apart from the basic raw materials packaging materials will also be required which will act as a protection of spice powder. Given below is the list of spices required to start a spice making business:
- Chilly
- Coriander
- Cumin
- Fenel seeds
- Methi leaves
- Mustard
- Pepper
- Poppyseed
Machinery Required for Spice Powder Business
Some of the equipment required to start with a spice powder making business I listed below:
- Grinding machine
- Impact pulverizer
- Double stage pulverizer
- Hammer mill
- Spice mill
- Pounding machine
Manufacturing Process of Spices
Cleaning : Cleaning is the very first step of the process of spice making. In this process procured underground spices are cleaned manually by removing impurities like stone, dust, dirt etc.
Drying : Next, after cleaning and washing of underground spices, they are kept under he sun until they are well-dried. A good quality spice powder is made out of well-dried spices. In case spices are not well washed and dried, it may lead to the growth of bacteria, eventually poisoning the food.
Roasting : Next step after drying the spices is to roast them. What roasting does is that it gives aroma, colour and good taste o the spice powder.
Grinding/Pulverizing : Further, Grinding and Pulverizing machines are used to grind the raw spices into the powdered form.
Grading : This process is the basis of the inclusion of spices mix with their raw material used. Also in this process spices are graded on the basis of their size, flavor, shape density and color.
Sieving : In this process powdered spices are sieved to ensure that spice powder has a uniform mesh size.
Packaging of Spice Powder : After grading and sieving of spice powder the final step involves the weighing and packaging of spice powder. Spice powder is weighed and packed as per the quantity needs to be packed. Further, the spices are wrapped in a polythene bag and then sealed with the sealing machine.
Aatmnirbhar Sena’s Role in Promoting Spice Powder Making Business in India
With the growing demand for spices across the world, especially amid the Covid-19 pandemic, makes spices powder making the business a profitable business idea in India. As we have discussed above, it doesn’t require much initial investment to start with the spice powder business and one can start this business even from his/her home. Since our organization Aatmnibhar Sena is on a mission to further the vision of our honorable Prime Minister of making India a self-reliant nation, we are helping budding entrepreneurs to promote their business ideas.
Spice powder making business is gaining popularity among many aspiring entrepreneurs because of the risen demand for spices across the world since many health experts talked about the benefits of spices in improving our immunity. Aatmnirbhar Sena, like every other business idea, is promoting this business of spice powders as well and helping out aspiring entrepreneurs in every possible way. Our organization will be guiding those interested in the spice powder making business through the cumbersome process of licensing and registration. For those who don’t have the initial investment to start the business, we’ve got them covered under loans that our organization will be providing with minimum collateral. From setting up the business of spice powder making to promote the business at both the national and international level, our team of experts will be there with our clients at every stage.
Take Away
With the increased demand for immunity boosting spices and India being the largest producer of spices in the whole world, now is the perfect time to enter the business of spice powder making in India. For all the aspiring entrepreneurs in the field of spices, feel free to contact us at Aatmnibhar Sena. Our experienced team of business experts and professionals will be more than happy to guide you through the comprehensive process of setting up a spice powder making business. Together let’s make India a ‘self-reliant’ nation.
