A Complete Process to Start a Spice Business in India – Overview

In India, starting a spice business is a profitable business option because India is the largest producer and exporter of spices. India produces 50 different types of spices for ready-made food, and spice power makes cooking more manageable. By 2020, the Indian spices business is predictable to reach approximately 18 billion US Dollars. Anyone can start a spice business in India with small-scale investment. Anyone can start a spice business on a small scale, medium scale, and large scale as per the individual's investment capacity. In this blog, we discuss the process of starting a spice business in India.

All types of spices in India are used in all kinds of Indian cuisines because spices bring color, smell, and good taste to the food. The most common spices used in every dish in India are chili powder, coriander powder, turmeric powder, etc., and whole spices are pepper, bay leaf, cardamom, and many more. Hence, setting up a spices business in India is likely to succeed. Once you decided to start your spice business, the first step is to determine the scope of earning profit in the business, the latest trends, and the demand for the product you manufacture.

Following are several licenses and registrations required for a small or large scale spice business in India:

1. GST Registration: This registration will help you in getting your spice business known, and it also opens various opportunities for your business in India. Thus, it is compulsory to obtain GST Registration Certificate for every applicant who wants to start a spice business in India.
    
2. Incorporation Certificate: If any individual wants to start a spice business, then the first step is to get an Incorporation Certificate of the company as per procedure with a logo and an attractive name.
    
3. Udyam or MSME Registration: With Udyam Registration or MSME Registration's help, you can get the facility and subsidy from the State Government.
    
4. FSSAI Registration: FSSAI Registration or FSSAI License is compulsory for every FBO (Food Business Operator) who wants to start a spice business in India because spice powder comes under the food category. That’s why it’s very important to get the FSSAI Registration Certificate.
    
5. Trade License: Trade License is compulsory for food business operators who want to start a spice business, and you can get a trade license from local authorities. A Trade License permits the applicant to start a business in a specific area or location.
    
6. Trademark Registration: If you want to protect your brand logo or brand design from any infringement or misuse, or duplication by others, then it is compulsory to get Trademark registration. Thus, for securing your brand name, you need to apply for a trademark and get Trademark Registration Number.
    
7. ISO Certificate: ISO 9001 confirms the company's product and services that meet customer expectations and better customer satisfaction. That's why it is necessary to obtain ISO Certification.
    
8. Import Export Code or IEC: If any business is involved in importing or exporting goods and services outside of India, it is mandatory to obtain IEC Code.
    
9. BIS Certification: You have to apply for BIS Certification, and ISI specification for ground spices are:

• For Chili Powder (ISI-2445-1963).
• For Curry Powder (ISI-1909-1961).
• For Blackhole and Ground (ISI-1798-1961).
• Coriander Powder (ISI-2444-1963).
• Turmeric Powder (ISI-2446-1963).
• Different ways of sampling and testing of spices (ISI-1997-1961).

1. You are advised to get the Agmark Certification.

The most vital material for incorporating your spice industry is raw materials, ungrounded spices. You can start by purchasing the following items wholesale:

• Chilly.
• Musturd.
• Pepper.
• Turmeric.
• Fennel Seeds.
• Coriander.
• Cumin.
• Poppyseed.
• Corrugated cartons.
• Approved packing materials.
• Methi leaves.

It is compulsory to get all the proper machinery and other equipment to be able to process and transform raw spices into powdered spices. Choose the machines carefully, which includes the latest technologies and other conditions as per your requirements. Following is the list of some of the equipment required:

1. Impact pulverizer.
2. Spice mill.
3. Pounding machine.
4. Grinding machine.
5. Hammermill.
6. Impact pulverizer.
7. Compressor.
8. Roster.
9. Weighing scale.
10. Sieves.
11. Disintegrator.
12. Heat sealing machine.
13. Spice grinder.
14. Packaging machine.

Following is the process for producing Spice Powder in India:

Step 1: Cleaning: The first step of producing spices powder is to clean the spices; otherwise, it can bring various diseases. Several impurities are found in the unclean spices, such as stones, dust, and dirt, which can be manually cleaned by employing several methods for getting rid of the impurity.
 

Step 2: Drying: After the cleaning process, the whole spices are dried. Usually, it is sun-dried, but artificial methods can speed up the process. The spiced powdered quality depends on the spices' dryness; if the spices are well dried, then the quality of spices also increases. Following are the two types of drying process which depends on the climatic conditions:

• Drying during the dry season.
• Drying during the wet season.

Step 3: Roasting: After drying the spices, then the spices are roasted to infuse the color, good taste, and aroma of the powdered spices.
 

Step 4: Grinding: After roasting, grind the raw spices into the powdered form with the help of grinding or pulverizing machines.
 

Step 5: Grading: This process is done based on the presence and proportions of spices mix with their raw materials. The grading of spices depends on the size, flavour, color, shape, and density of the spices.
 

Step 6: Sieving: All the powdered spices are sieved to confirm that all the spices has grinded in a uniform size.
 

Step 7: Packaging: After the sieving, all the spices are sent for the packaging. All the powdered spices are packed and weigh properly as per the requirement for the packaging.
 

Step 8: Sealing: After the packaging, it is mandatory to seal each packet carefully. This step is very important because improper sealing can result in wastage of spice mix, and it gets affected by dust, moisture, or any infected with pests.

Starting a spice business in India is very easy and profitable, and there are many scopes because of its demand in India. Anyone can start a spice business in India with small-scale investment, and to earn more profits, you can sell your products in wholesale, retails, or on the websites as per your preference.