Reasons to Start a Spice Business in India
Reasons to Start a Spice Business in India
India is known as the “Land of Spices” is the world largest producer and exporter of spices. An estimated 5.8 million tonnes of spices were exported from India during the year 2012-13 with chilli and garlic is among the top exported spices. The United States of America and China were the top export markets for Indian spices in terms of value. Spices worth nearly Rs. 2115 crores and Rs.2019 crores were exported to the USA and China, respectively during the year 2012-13. There still exists plenty of opportunity in the spice industry in India and the Spice Board of India has various scheme to promote Indian spices. In this article, we look at subsidies and schemes from the Spice Board for promoting Indian spices.
Spices Board of India
The Spices Board was constituted on 26th February 1987 under the Spices Board Act 1986. Spices Board is one of the five Commodity Boards functioning under the Ministry of Commerce & Industry. It is an autonomous body responsible for the export promotion and product development of spices in India.
Subsidy for Sending Spices Samples Abroad
Registered spice exporters who have Spice House Certificate or Brand Registration with the Spice Board / Organic Certification are eligible for availing the subsidy for sending spices samples abroad to prospective foreign buyers. Eligible spice exporters can receive the assistance of up to Rs.50,000 per year for sending spices samples to foreign buyers.
Subsidy for Printing Promotional Literature / Video / Brochures
Registered spice exporters who are having Spice House/Logo, Brand Registration with the Spice Board / Organic Certification are eligible for availing assistance under this scheme. Obtain prior approval from the Spice Board for availing benefit under this scheme.
Under this scheme, a subsidy of up to 50% of the cost of the promotional material subject to a maximum of Rs.2 lakh per promotion material is provided to the spice exporter.
Subsidy for Promotion of Indian Spice Brand Abroad
The scheme aims to promote Indian spice brands in new, sophisticated and affluent segments in foreign markets, targeted beyond the ethnic Indian population. Under this scheme, it provides an interest-free loan up to 100% for slotting/listing fee and promotional measures and 50% of the cost of product development, subject to a maximum of Rs.2.50 crore per brand.
Registered spice exporters who are having Spice House / Logo, Brand Registration with the Spice Board / Organic Certification are eligible for availing assistance under this scheme.
Subsidy for Spices Processing in North-Eastern Region
Under this scheme, it provides a subsidy to spice growers’ cooperatives, farmers’ associations, NGOs representing spices growers and individual entrepreneurs in the North-Eastern and hill states to establish primary processing facilities for spices. All types of primary processing facilities, which do not require very high investments, particularly to avoid distress sale and supports the large-scale wastage of locally grown spices.
The scheme provides grant-in-aid to the tune of 33% of the cost of all types of primary processing facilities subject to a maximum of Rs.25 lakh per beneficiary. In respect of farmers’ groups, the assistance will be up to 50% of the cost of primary processing facilities subject to a maximum of Rs.35 lakh per beneficiary.
Subsidy for Participating in International Trade Fairs and Meetings
For participation of spice exporters in international trade fairs or exhibitions, the Spice Board provides assistance by reimbursing 50% of airfare (economy excursion class). Further, for hiring an independent stall, it provides the assistance of up to 50% of cost up to a maximum of Rs.1 lakh per Exporter. For participation of exporters in international meetings/seminars and delegations – it provides the financial assistance of up to 50% of their airfare (economy excursion class) subject to a ceiling of Rs.1.5 lakh per year per exporter.
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