By the way, some vegetables are going to spoil quickly, is it safe to export Vegetable in such a situation? Yes, it can be absolutely safe if they are transported through their suitable vehicles which have the facility to maintain the temperature Demand for frozen vegetables, pickles, mushrooms, etc. is continuously increasing in foreign markets, which is why these days the trade of vegetables is considered to be one of the fastest and lucrative industries globally. Due to the high demand for vegetables in the global market, there is scope for large investment opportunities in exports.
According to one data, India is considered as the largest producer of ladyfinger and ginger while India stands second in the production of brinjal, cabbage, onion, potato, cauliflower, etc. Therefore starting a Vegetable Export Business in India can be beneficial for any aspiring entrepreneur. India’s climate is considered very suitable for the production of vegetables and geographically India can easily export vegetables to countries like Japan, Malaysia, Korea, Middle East. However, there is no doubt that the promoters of Vegetable Export business should have sufficient knowledge of foreign markets and their demand.
If you live in an area where fruits, vegetables, etc. are produced in good quantity, then you can consider starting a business of exporting them. Later in this article, we are going to talk about the same topic how an interested person can start his own business of exporting vegetables. But before that, we know what this kind of business is.
What is the export of vegetables?
India occupies a leading position in the production of vegetables in the world and the demand for vegetables remains constant throughout the global market. Keeping this demand in mind, when an entrepreneur buys vegetables from vegetable growers and legally exports them to the markets of foreign countries, this kind of trade is called Vegetable Export Business. However, depending on the time, situation, production, the government keeps deciding which vegetables can be exported to outside countries and which are not. Because the first priority of the government is to supply the demand available in the domestic market.
Export potential of fruits and vegetables
The climate of India is full of diversity that is why it ensures the availability of almost all varieties of fresh fruits and vegetables. India is the second-largest producer of fruits and vegetables in the world after China. According to data published by the National Horticulture Board, our country India produced 90.2 million metric tonnes of fruits and 169.1 million metric tonnes of vegetables during the financial year 2015-16. Fruits were grown on an area of about 6.3 million hectares while vegetables were grown in an area of 10.1 million hectares.
Starting Vegetable Export in India can also be beneficial because even though India is second in the production of fruits and vegetables, India is the first place in the production of some vegetables like ginger and okra, besides bananas, papaya, mangoes etc. India also ranks first in the production of. The huge production of fruits and vegetables provides excellent opportunities for export to India, according to a figure India exported 9182.88 crores of fruits and vegetables in the year 2019-20.
It exported fruits worth Rs 4832.81 crore and vegetables Rs 4350.13 crore. Among the fruits exported from the country were mainly grapes, pomegranates, mangoes, bananas, oranges etc. and vegetables included onions, mixed vegetables, potatoes, tomatoes and green chillies etc. was. India mainly did Vegetable Export to countries like Bangladesh, UAE, Netherlands, Nepal, Malaysia, UK, Sri Lanka, Oman and Qatar etc. The acceptance of fruits and vegetables is growing in global markets due to state-of-the-art cold chain infrastructure, quality assurance and concurrent development in India.
How To Start Vegetables And fruit export business
To start an export business of vegetables and fruits, the entrepreneur first needs to choose a place where the yield of vegetables is high. Because if the entrepreneur will start Vegetable Export Business from an area where there is more production of vegetables and fruits, then he can buy vegetables and fruits directly from the farmers. However, there are many complications in exporting fruits and vegetables because if they do not find a suitable environment then they can spoil. There are many fruits and vegetables which if not transported through proper temperature, will be on the way.
However, due to the growth of cold chain infrastructure in India, now the fear of their deterioration has reduced. So let us know how any aspiring entrepreneur can start his own vegetables and fruits export business.
1. Do research in the local area
The entrepreneur who starts Vegetable Export Business should first do research on various areas in the area in which he wants to start this kind of business. But the biggest thing that needs to be analyzed is how much vegetables and fruits are produced in that particular area. The second most important thing is that what is the distance from the port or airport from where he wants to start this kind of business?
Because in order to send vegetables and fruits to the market of foreign countries, the entrepreneur must first send their products to the port or airport, if their distance is high then it will cost a lot to transport them, which will help the entrepreneur to get vegetables and fruits at a competitive price. Selling can be difficult. Apart from this, it is also necessary to do research on the availability of freight forwarder in that area, the availability of cold chain, etc.
2. Select supplier
If the area where the entrepreneur is thinking of doing his own vegetable export business is good, then there will be no problem in getting the supplier. Even entrepreneurs can buy vegetables directly from farmers or growers of vegetables. But even then, the entrepreneur has to choose one or more reliable suppliers who can supply vegetables and fruits to the entrepreneur on a regular basis. Since our country is the second-largest producer of vegetables and fruits in India, there is no problem in getting such suppliers, their suppliers are easily found in every region of India. A local vegetable market can also be a good place to find suppliers, etc.
3. Build cold storage, warehouse and office
As we have already told that many vegetables and fruits are such that they spoil very quickly, even some can be spoiled during transport, so to transport them, special vehicles in which the cold is maintained. May be required. Apart from this, sometimes the entrepreneur doing Vegetable Export may also need to store vegetables and fruits. For this, the entrepreneur will have to set up cold storage where he can store them and send them to foreign markets when he gets the order. Apart from this, the entrepreneur will also need to set up his own office to perform various tasks from where he can complete all the accounting tasks.
4. Get the necessary licenses and registrations
The entrepreneur may require the following licenses and registrations to start a Vegetable Export Business.
- In the initial stage the entrepreneur can register as a proprietorship of his business or a one-person company. And later, when the turnover etc. increases, it can be converted into a private limited company.
- Current account with bank in the name of PAN and business along with GST registration.
- Trade or Shops and Establishment registration from local authority.
- Most important in this business is import export code registration. Whose information can be obtained from the official website of the Directorate General of Foreign Trade. Because after this registration the entrepreneur is considered eligible for import-export.
- To take advantage of government schemes and register their business as MSME, the entrepreneur can also register the enterprise.
- Identifying the business may require own brand and trademark registration to protect it.
5. Find Customer for your vegetable
Finding customers is one of the most important steps for the Vegetable Export business as well. Now the question arises that how can one find a customer in foreign countries sitting in India. For this, the entrepreneur must first prepare a list of countries which buy the most vegetables and fruits from India. When the entrepreneur is able to find out to which countries the vegetables are exported from India, then he can try to find his customers in those countries. Today the internet has ended the distance of the entire world, so the entrepreneur can seek the help of the internet to find customers in outside countries. In addition, the entrepreneur is also required to find out their competitors and their prices in those countries.
6. Appoint your agents, distributors, dealers in foreign markets
In order to make the Vegetable Export Business successful and to make the process extremely easy, the entrepreneur can appoint his agents, dealers, distributors etc. in foreign markets. The entrepreneur can offer a commission to them. To appoint a reliable agent or dealer, the entrepreneur can also seek the help of the consultant or the Chamber of Commerce of those countries.
7. Tie up packing and shipping company
When the entrepreneur will undertake Vegetable Export to the outside countries, he will need to packing and shipping them well. For this, the entrepreneur can tie up with a packing and shipping company. The packing and shipping company appointed in it will do all the work on behalf of the entrepreneur, which he must do to reach the designated foreign markets of vegetables and fruits. This is the last stage of the export business in which the entrepreneur sends the vegetables by packing and labelling according to the order of the customer or dealer. The entrepreneur can assign the responsibility of doing this work to a shipping company or freight forwarder.
FAQ / Q&A
Q – Is the IEC Code required for exporting vegetables?
Answer – Yes, it is mandatory to have Import Export Code for the import and export of any item in the country.
Q – How to apply for IEC Code?
answer – The import-export code can be applied through the official website of the Directorate General of Foreign Trade.
Q – Why freight forwarder is needed for Vegetable Export?
answer – There is a need to appoint a freight forwarder or shipping company to complete all procedures at ports or airports and send your vegetables safely to other countries.
Q – Where to buy vegetables for export?
answer – Vegetables can be easily purchased directly from farmers or from local vegetable markets.
Q – Is it necessary to require special coupling vehicles to transport the vegetable?
answer – It depends on which vegetable the entrepreneur is exporting. Such as potatoes, onions, etc., some vegetables that do not rot quickly. So they can also be transported by normal vehicles over short distances. But special transport arrangements have to be made for rotting, rotting vegetables.