India, a land of farmers, has the perfect climate cycle for farming. India’s agriculture sector is one of the most profitable sectors due to its rich soil, blessed agro-suitable climates, and culture rooted in agriculture.
If you are planning to start a business of export of fruits and vegetables from India, let me tell 3 reasons why you should convert your plan into action:
- As per a report generated by Statista, approximately 60% of India’s population works in the agriculture industry. Immense production = potential to fulfill global market supply.
- As per a study report by the government of India, in 2020-21, India exported fresh fruits for USD $ 765.62 million value whereas the export of fresh vegetables was valued at USD $ 721.47 million.
- There is a whopping demand for India’s fresh fruits & vegetables in many countries like the US, UK, UAE, African countries, Nepal, Netherland, Malaysia, Sri Lanka, the UK, Oman, Bangladesh, and Qatar.
Before jumping to the main question; How to start Exporting fruits and vegetables from India, let me start the blog by bursting a common myth – exporting is rewarding only if you produce those goods. In reality- anybody can export even if you have no experience, less budget, and no production!
One of our associates Mr. Vinay More has recently shipped 2 containers of export-quality onion to Malaysia. The best part is that he does not own any onion farm of his! Mr. More has sourced the goods from Nashik and fulfilled the order from Malaysia. Check out his journey in detail
Now that you know what potential the market has, let’s start with the step-by-step guide.
Guide To Starting A Vegetable Export Business In India
How to successfully complete export of fruits and vegetables from India?
There are 7 easy steps in the process of export of fruits and vegetables from India
- Train before you start
- List down what vegetable & fruit export business you want to start
- Register an Export Company
- Documentation is a must
- Connect with a market analyst
- Sourcing the goods
- Transportation & Payments
1. Train before you start!
Since you have landed on this blog, I believe you have already started your research. But having detailed research also requires professional training!
Training will help you learn the ins-outs of import-export business. Get a detailed understanding of international trading, import-export cycle, customs clearance procedure, terms and conditions, risk management, documentation, and much more.
2. List down what vegetable & fruit export business you want to start
A professional course will help you explore more about the vegetable export business in India. But let me help you with some insider information.
Here is a list of fresh vegetables with immense demand in global markets-
Onion, chili, green lemon, ginger, drum sticks, elephant foot yam, and Ivy Gourd, are some of the most demanded vegetables from India.
Bananas, pomegranates, grapes, mango, watermelon, muskmelon, guava, custard apple, etc. are some of the most demanded fruits from India. Though bananas have a great volume of export, grapes are a more profitable fruit.
3. Register an Export Company
First thing you need to do after deciding which vegetable/fruit you want to export is to establish a firm. You can start your company in partnership as well.
Registering a company will enable you to establish a brand. Invest good time in deciding the name of the company and make sure it suits your vegetable export business.
4. Documentation is a must
Get all the necessary documents completed & protocols followed like GST, VAT, ST, etc. You will also be required to get your unique Import Export Code (IEC) & Agricultural and Processed Food Products Export Development Authority (APEDA) License. It will cost you Rs 5000 excluding GST to get the APEDA license and Rs 500- Rs 1000 to get the Import Export Code.
Documents you might need to get your IEC
- Yours or company’s copy of PAN Card.
- Your voter ID or Aadhar card or passport copy.
- Your or company’s cancel cheque copies of current bank accounts.
- Photocopy of Rent Agreement or Light Bill Copy of the premise.
Documents you might need to get your APEDA
- Application form signed by the authorities
- Photocopy of IEC
- Bank Certificate signed by the authorities
- Latest 2 months bank statements
- Canceled cheque copies of current bank accounts
5. Connect with a market analyst
A market analyst will take on 3 major responsibilities;
- In-depth market research of vegetables & fruits demanded by major countries
- What are the quality standards of those vegetables and fruits
- Get more international buyers for your products
You can become your own Market Analyst as well! Or you can simply connect with an organization like Import Export Federation for complete hand-holding.
6. Sourcing the goods
A report generated by the government of India, 11.8 crore plus main cultivators are present in India. If you are one of these & have a huge land growing amazing vegetables & fruits, grab the opportunity to take your quality products to international markets.
You can also export even if you are not into farming vegetables and fruits. All you need is to associate with multiple farmers or Mandis to purchase the goods and export them to multiple countries. Keep these points in mind while sourcing agro products
Since most of the vegetable export businesses in India source products from multiple sources, make sure the quality matches international standards.
7. Transportation & Payments
You can decide whether you wish to opt for freight or cargo shipping of your products. Since you are planning to start a vegetable and fruit export business in India, it is important to select the right transportation medium. You can also hire one Operations Executive to help you through the process.
Make sure you open your account with a trustworthy Bank that facilitates easy overseas transactions in different currencies. Also, the most important part is; Get the insurance done for your shipments! Very vital!
Starting the export of fruits and vegetables from India is a rewarding experience only if done right! In my journey of teaching import export to 50,000+ candidates, I have evolved my services as I understood that this sector needs throughout support. At the import-export federation, you will get complete assistance throughout the business journey; learning the business tactics, documentation, risk management, buyers’ data, connecting with international partners, actual shipping, etc. Connect to explore more!