The spice route, which originated in India thousands of years ago, is proof that spices were one of our earliest exports. Today India is one of the world’s biggest spice manufacturers and exporters. We make it easy for you to get into the business.
Indian Spices are sought after all around the world for their superior quality and flavour. India’s climatic conditions, which feature tropical and subtropical weather patterns, make it perfect for cultivating practically all kinds of spices. In the past decade or so, several small landowners have switched to growing spices as they take up less space and provide better returns. As a result, India continues to be the world’s largest producer, creator, and exporter of spices delivering over 75 of the world’s 109 different spices. Hence, it is quite clear that the spice export business has a lot of scope in India.
Benefits of Starting a Spice 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.
Biggest Challenges Faced by the Spice Export Business in India
- There is a high credit risk for distributors and mediators within the spice industry, which has made new investors apprehensive
- Moreover, the absence of high-quality packers and labellers in the Indian spice industry has checked foreign buyers
- Likewise, lack of access to high-tech machines has made expansion difficult for small-scale businesses
- Cutthroat competition in the spice market has made it difficult for new players to enter the spice market.
Different Types of Spice Export Businesses in India
The most common ways you can start a spice export business in India are as –
- Manufacturer of spices
- Merchant of spices
- Wholesale trader of spices
- 3rd-party manufacturer of spices
- A supplier/exporter of spices
While manufacturers deal with the production of spices on a large scale, merchants and traders act as middlemen completing the logistical chain. In other words, spice manufacturers serve as the primary producers, whereas merchants help in ensuring that the spices reach the right markets and ultimate consumers. Additionally, wholesale traders ensure that retailers who package, distribute, and sell spices receive the spice produced, and, third-party manufacturers help with the production of spice in the country while suppliers help export the spices to foreign countries.