The fruits vegetable export business demands adequate knowledge about foreign markets. If you are living in an area where fruits and vegetable production is good enough, you can consider initiating a fruit vegetable export business starting just from your local growers. Here is a stepwise guide to starting a fruits and vegetable export business in India.
The export-import sector is hugely organized and you will get sufficient data in your hand. The most beneficial part of this business is, you can start this venture from your home location.
Here are the 7 Steps to Start a Fruits & Vegetable Export Business
1. Fruits Vegetables Export Research & Business Plan
In starting fruits vegetable export business, firstly conduct extensive market research about the products that are available for export and the foreign market that is ready to buy that particular product. Keep informed yourself. Finding the right market for a specific product is important in getting success. Also, you will need to have a fair amount of ideas about different currencies.
Preparing a business plan is important to start fruits vegetable export business. You can initiate this business by either concentrating only on local growers or establishing a big export house with the required infrastructure.
In any case plan about your focus products, market, and startup budget. Calculate the cost of the shipment and other necessary activities to get the export done. Fix your pricing. It is advisable to start on a small scale. As you grow you will definitely find more ways to expand.
2. License For Fruits Vegetable Export Business
In starting fruits vegetable export business, you will need to have several licenses and permission from the Government authority. An export license is a document issued by the appropriate licensing agency after which an exporter is allowed to transport his product in a foreign market. The license is only issued after a careful review of the facts surrounding the given export transaction.
3. How to Get an IEC Number for Vegetable Export Business in India
For every first-time exporter, it is necessary to get registered with the DGFT (Director General of Foreign Trade), Ministry of Commerce, Government of India. DGFT provides the exporter with a unique IEC Number.
IEC Number is a ten digits code required for the purpose of export as well as import. No exporter is allowed to export his goods abroad without the IEC number.
The application for the IEC number can be submitted to the nearest regional authority of DGFT. The application form which is known as “Aayaat Niryaat Form – ANF2A” can also be submitted online at the DGFT website.
While submitting an application form for the IEC number, an applicant is required to submit his PAN account number. Only one IEC is issued against a single PAN number. Apart from the PAN number, an applicant is also required to submit his Current Bank Account number and Bankers’ Certificate. Also, apply for a GST registration number as it is mandatory presently to start and run a business in India.
An amount of Rs 1000/- is required to submit with the application fee. This amount can be submitted in the form of a Demand Draft or payment through EFT (Electronic Fund Transfer by Nominated Bank by DGFT.
It is important to obtain a registration cum membership certificate (RCMC) from the Export Promotion Councils (EPC).
4. Making Connections For Fruits Vegetables Export Business
Gather information about foreign markets. Find out the countries that import the products that you want to export. To every possible contact, write a letter introducing your company with the product specifications.
Suggested Read: Best Small Upcoming Business Ideas in India
As you continue your correspondence with foreign companies, build up a good rapport with their representatives. Prepare for sending sample products. You may be able to work directly with a wholesaler of an overseas importing company.
5. Fruits Vegetables Export Business Operation
Agreement with the growers or suppliers is a vital document in this business. You need to have a written and signed contract between the growers and you as the export representative. Consult with an attorney to draft the agreement. Clearly mention there about the specific commission quoted to the distributors on top of the price of goods.
The terms of the contract should then be stated: how many years the contract will be signed for, the terms of cancellation by either party voluntarily, or because of no sales action over a certain period of time.
Talk to your bank about having the facility of a Letter of Credit. A letter of credit eliminates financial risks for you, the fruits and vegetables growers or suppliers, and the distributor.
You’ll need the help of a freight forwarder when you make up the total price quotation to the distributor. Not only do you include the grower’s price and your commission – usually added together, but you need to include dock and cartage fees, the forwarder’s fees, ocean freight costs, marine insurance, duty charges, and any consular invoice fees, packing charges, or other hidden costs.
6. Product Wise Market List For Fruits Vegetables Export Business
|Floriculture||USA, Japan, UK, Netherlands & Germany|
|Fruits & Vegetable Seeds||Pakistan, Bangladesh, USA, Japan & Netherlands|
|Fresh Onions||Bangladesh, Malaysia, Sri Lanka, UAE, Pakistan & Nepal|
|Other Fresh Vegetables||UAE, Bangladesh, Pakistan, Nepal & Sri Lanka|
|Walnuts||Spain, Egypt, Germany, UK & Netherlands|
|Fresh Mangoes||UAE, Bangladesh, UK, Saudi Arabia & Nepal|
|Fresh Grapes||Netherlands, UK, UAE, Bangladesh, Belgium|
|Other Fresh Fruits||Bangladesh, UAE, Netherlands, Nepal, Saudi Arabia|
|Dried & Preserved Vegetables||Russia, France, USA, Germany & Spain|
|Mango Pulp||Saudi Arabia, Netherlands, UAE, Yemen, Arab Republic & Kuwait|
|Pickles & Chutneys||Russia, USA, Belgium, Netherlands & France|
|Other Processed Fruits||USA, Netherlands, UK, UAE & Saudi Arabia|
|Buffalo Meat||Malaysia, Philippines, Saudi Arabia, Jordan & Angola|
|Sheep / Goat Meat||Saudi Arabia, UAE, Qatar, Oman & Kuwait|
|Poultry Products||UAE, Kuwait, Oman, Germany & Japan|
|Dairy Products||Bangladesh, Algeria, UAE, Yamen, Arab Republic & Egypt|
|Animal Casings||Germany, Portugal, France, Spain & Italy|
|Processed Meat||Seychelles, UAE, Hong Kong, Germany & USA|
|Groundnuts||Indonesia, Malaysia, Philippines, UK & Singapore|
|Guar Gum||USA, China, Germany, Italy & Netherlands|
7. Promote Your Fruits Vegetable Export Business
The profit of the fruit vegetable export business is in the quantity of the goods traded. The higher the cost of the merchandise, the higher the profit from your percentage. This is a high profit-making venture. Because of the low overhead, most of the money you make on the commission is yours. But building a truly profitable business requires dedication and a good knowledge of the business.
Advertise in the print media for distributors and for goods. To get the proper supply you may establish a business relationship with the local agro-input retailers. Online presence is important. Register your business with online directories. Set up your own website to generate sales leads from there also.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.