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 recognized 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 spice is a mass consumption item mostly used in culinary products 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 for various certificates or licenses 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.

tasks_2021_2xRegistration 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.

tasks_2021_2xGST Registration

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

tasks_2021_2xTrade 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 a Trade license from local authorities.

tasks_2021_2xUdyam/MSME Registration

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

tasks_2021_2xTradeMark 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.

tasks_2021_2xFSSAI 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.

tasks_2021_2xIEC 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 the IEC code.

tasks_2021_2xBIS certification

You require applying for BIS certification, ISI specifications 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 testing of Spices and condiments ISI-1997-1961
  • Turmeric powder ISI-2446-1963

tasks_2021_2xISO Certification

ISO 9001 ensures 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

tasks_2021_2xCleaning 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.

tasks_2021_2xDrying 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. 

tasks_2021_2xRoasting 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, color, and good taste to spice powder.

tasks_2021_2xGrinding process 

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

tasks_2021_2xGrading Process

The grading is a process that is the basis of the inclusion and dimension of spices mixed with their raw material utilized, also depends on the type of spices (flavor), size, shape, density, and color.

tasks_2021_2xSieving Process

Make sure that spice powder has a uniform mesh dimension.

tasks_2021_2xPackaging of spices

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

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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 wholesale;

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

Machinery used in Spice Business

A list of some of the equips that you would require is 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 chili, 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.

Spice Board Registration for Exporters

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

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58 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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  4. Hi,
    I am a housewife and want to start spice business starting from red chilli powder in Hyderabad. I want to know the prerequisite of spice business like Firm incorporation to license required to start up spice business, about local market, online business prospect and how much capital required initially, and to get raw material in a very cheap price.I want to know about the machines configuration, capacity and price. How to get loan in a lower rate of interest.

  5. Hiiii.. Would love to learn more about the spice business.. looking for some guidance and information on what’s the ways n procedures.
    Thank you

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