How to Start a Spice Business in India

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As we know India is a major producer and exporter of Spices. Also, it is recognised as a profitable business in India. Any individual can start a spice business as a small, medium and large scale base as per his or her investment capacity. Spice powder is a necessary ingredient in cooking, none of the Indian food is made without spices every food industry consumes spices, in this article; we discuss the procedure to start a spice business in India with relevant information.

Let’s understand in detail –

Spice Business Market Opportunity in India

India produces almost all the known spices. The country is the highest exporter of this commodity. As the spice is a mass consumption item mostly used in culinary product or seasoning of food products, its internal demand is increasing quite steadily.

With varying lifestyles and especially with changes in food habits and the increase in income level, the use of powdered spices has risen. Also, there is a requirement of various certificate or license to start a spice business in India.

Is Spice Business in India Profitable?

As we know, the spice appears under the basic goods segment. Also, it is a vital food item for kitchens. And in a country like India where the population frequency is so high, the consumption is also very high.

The spice mixes and branded spices require greater profit margins, as compared to straight and unbranded spices. We can also initiate a small scale home-based spice business is a profitable investment opportunity for new entrepreneurs in India.

Registration & License for Spice Business in India

Regardless you commence a small scale or large scale spice business, you have to get these registrations and licenses.

Registration of Firm:

To start the Spice business in India, firstly, get Company Incorporation or Company has to be established as per procedure with an attractive name and logo.

GST Registration:

GST registration helps you in getting your business recognized as a and also opens a number of opportunities for your business. So It is mandatory to take GST Registration for every business.

Trade License:

A trade license is a document/certificate that gives permission to the applicant to commence a particular trade or business in a particular area. So it is necessary to Obtain Trade license from local authorities.

Udyam/MSME Registration:

Register your business with Udyam registration/ MSME Registration, it will help you to get the facility and subsidy from the state government.

Trade Mark Registration: 

It is become very necessary to preserve your brand logo from misuse or duplication by others. So Secure your brand you need to apply for a trademark and obtain a Trademark Registration number.

FSSAI Registration:

Spice powder is a food item so you require to get a food operation license or FSSAI Registration which is compulsory for every food industry.

Required IEC code:

IEC is the first registration needed for the business entities who are dealing in Importing or exporting of goods and services from India. So it is necessary to apply for IEC code.

BIS certification:

You require applying for BIS certification, ISI specification for ground spices are

  • Blackhole and ground ISI-1798-1961
  • Chilli powder ISI-2445-1963
  • Coriander powder ISI-2444-1963
  • Curry powder ISI-1909-1961
  • Ways of sampling and test of Spices and condiment ISI-1997-1961
  • Turmeric powder ISI-2446-1963

ISO Certification:

ISO 9001 ensure company product & services meets customer expectations and better customer satisfaction. So it is required for a business to obtain ISO Certification.

Note – It is advisable to obtain AGMARK certification.

Spice Manufacturing Process

Manufacturing Process of Spice Business in India

1. Cleaning Process

It is a primary process for spice making in which the ungrounded spices are clean manually by eliminating impurities like stone, dust, and dirt.

2.Drying Process 

After the cleaning process, place them in sunlight so that they dry, the quality of the spice powder will depend on the well-dried spice. 

3.Roasting Process

Once spices are dried, they are working through the roasting process, the roasting of the spices is important because it will aid to give the aroma, colour and good taste to spice powder.

4.Grinding process 

Grinding machine is applied for pulverizing to convert the spices into powder form.

5.Grading Process

The grading is a process which is the basis of the inclusion and dimension of spices mix with their raw material utilised, also depends on the type of spices (flavour), size, shape, density, and colour.

6.Sieving Process

Make sure that spice powder has a uniform mesh dimension.

7.PACKAGING OF SPICE

Packaging of spices is mandatory to Protect and preserve your spices and such packaging bags will renders you the flexibility to choose the best size, style, and features for your spices. 

Raw Material Required in Spice Business

The basic and the most essential material for incorporating your spice industry are raw materials; ungrounded spice. You can commence by purchasing the following items in wholesale;

  • Chilly
  • Coriander
  • Corrugated cartons
  • Cumin
  • Fennel seeds
  • Methi leaves
  • Mustard
  • Pepper
  • Approved food colour and preservative
  • Poppyseed
  • Turmeric
  • Approved or food-grade Packing materials

Machinery used in Spice Business

List of some of the equips that you would require are as follows;

  • Grinding machine
  • Impact pulverizer
  • Double stage pulverizer
  • Hammermill
  • Spice mill
  • Pounding machine

Commence Exporting Spices

We know that India is a big exporter of spices. The items cover cumin, red chilli, pepper, turmeric, green cardamom, etc. Also, there is a huge demand for Indian spices abroad, you must consider export potential if you have decided to commence the spice business. Here is the List of Spices Mentioned in the Spice Board Act

Where to Sell Spices

When you have manufactured your product, now you require to sell it to earn profits. This is the final step, but the most important step; Here is the list –

  • Local market {Retail}
  • Wholesale
  • Online Portal
  • Export

So, these are the procedures to start a spice business in India.

If you require any other guidance concerning GST, FSSAI, Trademark, Company Incorporation, please feel free to contact our business advisors at 8881-069-069.

Download E-Startup Mobile App and never miss the brand-new updates relating to your business.

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54 thoughts on “How to Start a Spice Business in India”

  1. Hi there,
    Planning to start business in WHOLE spices here in Asansol, West Bengal. Presently want to stick with local market and adjoining areas.
    Thanks for your above tips for getting licences from govt. bodies.what will be the charges to procure all these licences and your consulting fees.
    Regards and thanks.
    Intakhab Khan

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