How to start a vegetable export business in India

Written by martin muchira
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How to start a vegetable export business in India
Vegetable export business in India can be very lucrative due to the high demand of frozen vegetables globally. (pomelo image by Valery Shanin from Fotolia.com)

The vegetable business is one of the fastest growing in the food processing industry in India. This is due to the increased demand for frozen vegetable products, processed mushrooms, tomato products, and pickles all over the world. This has created abundant investment opportunities in the food processing industry in India, which is primarily export-oriented. Due to the geographical location of India, it has the advantage of a large export market which includes the Middle East, Malaysia, Japan, Korea, Thailand and Europe (see Reference 1).

Skill level:
Moderate

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Instructions

  1. 1

    Set up office. Register with the Ministry of commerce through the Director General of Foreign Trade (DGFT). The DGFT will then provide your export business with a 10-digit unique IEC export code number. Fill out the Aayaat Niryaat Form-ANF2A, and submit it to a DGFT office near you or online. You will also be required to submit your Permanent Account Number (PAN) number and current bank number, bankers certificate and Rs. 1000. Also, register with the Export Promotion Councils or EPC and the Commodity Board which will promote your export goods overseas.

  2. 2

    Set up office. It should be in an area where houses can have easy access to the business. You can choose a physical location such as in an industrial area or near a busy market. Your export business can also be based online.

  3. 3

    Find suppliers. Make contacts in India. You can contact the Indian consulate/embassy in the US where you can request to be given industry directories, catalogues or lists of suppliers in India. Alternatively, try and find qualified professionals in India such as a lawyer and accountant who will help you find reliable suppliers. You also have the option of getting in touch with the Chamber of Commerce in India who will help you find contacts. Once you have identified specific suppliers, approach the supplier and introduce your business. Give a background of your company, highlight the potential that the vegetable market has overseas and explain why you are the best-placed business to sell their products overseas (see Reference 2).

  4. 4

    Find clients. Market your services and find sellers in your target countries. It is important that you identify your competitors in the countries you want to get into and determine suitable pricing for your vegetables. Some of the countries that buy vegetables from India include Pakistan, UK, Saudi Arabia, France, Germany and Spain ( see Reference 3).

  5. 5

    Hire distributors, dealers and representatives. It would be advisable to hire overseas agents on a commission basis. To find reliable sales agents, you can contact the Chamber of Commerce in the country you intend to export to, the Export Promotion Councils and independent consultants (see Reference 5).

  6. 6

    Package and label your products to prepare them for shipment. Find a freight forwarder or a shipping company. Some of the top shipping companies in India include Sterling Express, Priority Express,etc.

Tips and warnings

  • Register with the tax authorities in India; exporters are exempted from Value Added Tax and Central Sales Tax.

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