How to Start Fruits Vegetable Export Business in India

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.

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.

Steps to Start a Fruits & Vegetable Export Business in India

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 either concentrating only on local growers or establish 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.

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.

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 exporter 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.
Application form which is known as “Aayaat Niryaat Form – ANF2A” can also be submitted online at the DGFT website: http://dgft.delhi.nic.in

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 PAN number, an applicant is also required to submit his Current Bank Account number and Bankers Certificate.
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).

Making Connections For Fruits Vegetable 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. 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.

Fruits Vegetable 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 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.

Product Wise Market List For Fruits Vegetables Export Business

Product Major Markets
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, Yamen, 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

Promote Your Fruits Vegetable Export Business

The profit of the fruits 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.