It is said that Indian people are very enthusiastic about food, so starting Spice Business here has always proved beneficial. In our country India, whether it is a festival, an event, a party, a wedding anniversary, etc., there is a special arrangement of food for the guests. And Indian food is recognized only by the aroma of the spices here. Since India is a large country based on population, there can be a lot of differences in states like mines, paan, living, tolerance, etc. based on states. But it is generally seen that even though the names of the food items are different in different states of India, spices are used in making them.
This is probably because spices have been produced in India since ancient times due to their health benefits. This is the reason why our country India is also called the home of spices. There are many spices here that have good yield, coriander, chili, turmeric, cumin, mint, garlic, etc. are the main ones. Therefore, here is an area where spices are good, the spice industry or Spice Business can be started easily.
What is Spice Business?
However, the spice industry also includes a lot of commercial activities like buying and selling spices, cultivating spices, etc. But here at Spice Business, we mean a business activity in which the entrepreneur processes raw spices and makes them easy to use for food. And if we talk about most of the spices, then in the market we usually get them in the form of powder in the packing. Therefore, when an entrepreneur grinds raw spices and converts them into powder form, packing, etc. is brought into the market, then the work done by that entrepreneur is called the spice industry.
List of Spices and Producing States
It is very important for a person who wants to start a Spice Business to know which state of India has the highest spice yield. So that he can decide which spices to make him a part of his spice industry. Because the entrepreneur should make the same spices part of his business which he can buy locally at cheaper rates.
Chilli is one of the major spices used in every Indian kitchen. And most of its production is done in states like Maharashtra, Uttar Pradesh, West Bengal, Madhya Pradesh, Tamil Nadu, Uttarakhand, Gujarat, Orissa, Karnataka, Rajasthan, and Andhra Pradesh.
Both coriander leaves and seeds are used, Rajasthan, Uttar Pradesh, and Uttarakhand have a leading position in its production.
Ginger is also used in making beverages like tea, in addition to food. And in producing it, Himachal Pradesh, Uttarakhand, Chhattisgarh, Sikkim, Jharkhand, West Bengal, Tamil Nadu, Arunachal Pradesh, Madhya Pradesh, Kerala, Andhra Pradesh, Meghalaya, Karnataka, Orissa, etc. play a leading role.
5. Cumin and fennel:-
Cumin is also included in the list of major spices used in cooking. Cumin and fennel are produced mainly in Rajasthan, Uttar Pradesh, and Gujarat.
We can mainly divide cardamom into two types, small and big, and small cardamom is produced in Tamil Nadu, Karnataka, and Kerala, and big cardamom is produced in West Bengal and Sikkim.
7. Clove Pepper and Thyme:-
Where parsley is produced by Punjab and Uttar Pradesh, clove and pepper are produced in Kerala, Tamil Nadu, and Karnataka.
This spice called Ajovan is produced in the states of Jammu and Kashmir and Bihar.
Methi is also included in the spices list and is produced by the states of Rajasthan, Uttar Pradesh, and Gujarat.
Mustard is produced in Andhra Pradesh, Uttar Pradesh, and Bihar.
11. Nutmeg, Mace, and Cinnamon:-
This spice is produced by the states of Kerala and Tamil Nadu.
12. Soya Seed:-
It is produced by the states of Rajasthan and Gujarat.
Its major producing state is Jammu and Kashmir.
This spice called Kokum is produced in the state of Karnataka.
It is mainly produced in three states Karnataka, Tamil Nadu, and Kerala.
Tejpatta is produced in Arunachal Pradesh and Sikkim.
This spice called cambose is produced in Karnataka and Kerala.
Garlic is also a major spice used in cooking. And it is produced in Madhya Pradesh, Rajasthan, Maharashtra, Karnataka, Chhattisgarh, Uttar Pradesh, Bihar, Haryana, Gujarat, Orissa, etc.
19. Pomegranate seeds:-
They are produced in the states of Tamil Nadu and Maharashtra, apart from this, Tamil Nadu also produces herbal and exotic spices.
Why Should We Start a Spice Business?
Although when a person thinks of starting a business, he thinks that why should he start this business? That is, he who wishes to start a business wants to know about the advantages of starting and the opportunities available in the market. That is why it is natural for a person starting a Spice Business to ask why he should start the spice business, ie the spice industry.
Spices are grown almost everywhere in India, so the raw material is easily available for this trade.
Spice Business can be started with a grinding machine with very little investment. Initially, entrepreneurs can also sell their spices by packing in-plane envelopes.
Some spices like chili and turmeric are not only used in food but turmeric is also used in cosmetic, textile and paint industries. Spices like chili etc. are also used by industrial units making pickles, chutneys, and medicines.
Not only the country’s markets but also foreign markets are open for good quality issues and the entrepreneur can get a profit by exporting them.
The target customers of an entrepreneur doing Spice Business are not only the women who handle the cooks of the houses but also the hotels, railways, army canteens, etc. are also very big customers of spices.
In the initial phase, one can start the spice industry as a cottage industry from his home. Which does not require him to rent the place etc.
How to Start a Spice Business
Although the process of starting a Spice Business is very easy, if the entrepreneur is packing and selling spices in-plane envelopes, then he avoids getting many licenses and registrations. But if the entrepreneur wants to start a spice industry with his brand, he may need to take many steps. Whose step details are as follows.
1. Source of Raw materials for Spice Business
The person starting Spice Business will have to take this first step towards starting this kind of business and find out from where he will get cheap and good raw material. If you are from a rural area, then you may get pure and cheap raw materials available for your business there. Apart from this, the entrepreneur can also choose a supplier to get the raw material for the spice industry. If the entrepreneur in the rural areas will buy raw materials directly from the farmers, then it will get cheaper as well as the entrepreneur will save on the expenses of transportation. Therefore, if the entrepreneur is planning to run this business successfully, then it is necessary to first find the source of raw materials in that area.
2. Space for Spice Business
To start a Spice Business, the entrepreneur needs a place from where he can operate this business easily. And where the work of grinding and packing spices can be handled comfortably. If any room in the house of the entrepreneur is empty, then he can start this business of this fold from there as well. But if it is not so, then the entrepreneur may need to rent a small room from where he can do all the activities related to this business. But keep in mind that a rent agreement must be made by the entrepreneur so that it can be used as address proof.
3. Necessary license and registration for Spice Business
However, if the entrepreneur starts it as a cottage industry without a brand name, then he will not need that much license and registration. But if the entrepreneur wants to start Spice Business under its brand. So he will need to register his brand name so that no other person with that name can do the same business. Apart from this, the entrepreneur is also required to get a food license which any entrepreneur can easily apply for online. Apart from this, the entrepreneur is required to get tax registration, this can also be applied online. According to the local rules, it is also required to get a trade license from the local authority such as Municipal Corporation, Municipality, etc.
4. Machinery and Equipment for Spice Business
After getting all the necessary licenses and registrations for Spice Business, the next step of the entrepreneur should be to purchase machinery and equipment. However, the entrepreneur should decide to buy machinery and equipment for the spice industry only after asking for quotations from more than one supplier. Following is the list of some of the major machinery and equipment used in this business.
A person starting the spice industry needs a cleaner. This is one such tool. The work of which is to remove unwanted materials like dust, dirt, pebbles, stones, etc. from raw materials.
As it is very important to dry the spices before grinding them so that they can be brewed well. To prove this work, the help of a dryer is taken in Spice Business.
The job of the grinding machine is to grind raw material and convert it into powder form.
Apart from this, the entrepreneur also needs a grader machine whose job is to grade the powdered spices based on their fineness. In this, the thinnest powder remains at the bottom and the thicker powder remains at the top.
Now the entrepreneur also needs a bag sealing machine for packing.
5. Start Spice Business production by ordering raw material
Now, if the installation of machinery and equipment is complete, then the next step of the entrepreneur doing the Spice Business should be to start the production by sourcing the raw materials. The entrepreneur should try to get the raw material for his spice industry from the local farmers or suppliers so that the raw material can be available at cheaper rates. And he should be able to stand in the market by fixing the competitive price of his products. Because the main purpose of business is to get profit. And no entrepreneur will ever sell his product for less than the cost price, so if the entrepreneur gets raw material and laborers at cheaper rates then his cost comes down. And he can stand in the competitive market by selling his products at competitive prices to his customers.
6. Marketing and Sell (Market & Grow your Spice Business)
However, it is clear to the entrepreneurs doing Spice Business that some spices are used in almost every kitchen in India.
So everyone can be the target customer of an entrepreneur but a large number of issues are used by the people running hotels, canteens, etc.
Therefore, if the entrepreneur wishes, the hotels, dhabas, canteens, etc. available in that particular place, where a large amount of cooking is done, can directly meet them and do a business deal.
If they are ready to give some big orders to the entrepreneur, then the entrepreneur can make a deal to sell them spices even at low prices.
The entrepreneur can adopt many online and offline marketing methods for marketing his spice industry.
7. Raw Material for Making Spices
For this trade, only those raw spices are used as raw material, with the help of which you want to do business. Generally, raw materials required for this trade are turmeric, black pepper, dry chili, cumin, coriander, etc.
Masala Price for making spices:
Following are the details of spice prices given above.
Dry turmeric: Rs 145 per kg
Black pepper: 500 rupees per kilogram
Dry Mirch: Rs 130 per kg
Cumin: 200 rupees per kilogram
Coriander: Rs 150 per kg
8. Spices Making Machinery
This industry requires some specialized machines; With the help of which the quality of your spices can be maintained. This machine is being described here.
With the help of this machine, pebble stones are cleaned with a raw material of spices.
Spices are dried using a dryer.
With the help of this machine, the spices are brewed with less effort.
This machine works to finely grind down the powder and spice up the coarse powder.
Bag sealing machine:
Spices are packaged with the help of this machine.
9. Spices Making Machinery:
This entire machine costs Spice Machinery about 4 lakh rupees to set up.
Where to buy: You can buy spices and machines wholesale or online through the link given below.
10. Spice Business making process
Often such spices are used in the houses, which are crushed in the machine. However, if there is a choice of hand-made spices in place of machine-made spices, then people prefer to take hand-made spices. The biggest benefit from this is that the vegetable is much tastier than the spices prepared by hand. Also, spices prepared by hand are relatively more nutritious.
First of all, you have to buy all those spices wholesale, which you want to use in your business.
These spices need to be cleaned thoroughly and dried in the sun.
After this, it is finely coded with the help of Okhla.
11. Cost for Spice Business
There is no need for much capital to trade handmade spices. The best thing is that you do not have to spend money on the machine. Due to not buying the machine, you save a good amount of money. You need to spend on raw materials to start the business. Apart from this, you have to spend on its packaging and registration. In this way, the cost of this trade depends entirely on you, and how much money you want to start the business. Usually, this business can be started within 20,000 to 30,000 rupees.
12. Profit in Spice Business
You can sell home spices for 40 to 50 rupees per packet. With which you will earn 20 to 30 rupees per packet. If you sell it in bulk, then you can earn at least 50 thousand to 70 thousand rupees per month from it. However, how much benefit you will get in this business will depend on the quality of your spices. If people like this, then you can reduce the profit of millions by doing this business with your brand.
13. Place for Spice Business
Since this business can be done from home. Therefore, you must have a proper location. You need space for your spices to dry, grind, and for packaging. At least 120 to 150 square meters of space is required to grind spices and make packets.
14. Spices Business Packaging
Special attention needs to be paid to the packaging of spices. You can use packets or cans for your spices. If you put your brand sticker on these packets, then it will be very effective. This will create a special identity for your product. You can get plastic packets used for packaging from the market.
15. Marketing of Spices Business
This business can be marketed at many levels. If you want, you can trade as a wholesaler or a retailer. You can sell your product very easily at wholesale prices by talking to the shops of Masala Bazaar. If you make small packets of your spices, then you can trade them in various grocery stores in the city very easily. You can easily do this business by taking orders from average companies.
16. Registration of Spices Business
This business is a food business, so it is mandatory to have the necessary registration. First of all, you have to get your firm under industry base or MSME. After this, you need to get a fssai license from the food department of the government. With this license, questions related to the purity of your spices will not arise. If you want to do business on a large scale, then you also have to register your firm under proprietorship or partnership. Also, need to obtain an ISI license on your trademark. You need to create a current account in a bank in the name of your firm.
17. Risk in Spice Business
There can be some risk in the spice trade at home because the spices also get spoiled after a time if they are sold as soon as possible, otherwise, you may have to take a risk. Therefore, it is better to keep this in mind while preparing the stock of spices.
In this way, you can start a long-term business at your home and earn a better profit.