Guide to start an import export Agricultural Business
If you have decided to begin with the agriculture export business then there exist a few points that must be considered which are enlisted within this Guide to start an import export Agricultural Business. Having advance agriculture information like agricultural development, agriculture technology, agricultural marketing, and careers in agriculture, agriculture jobs, various agriculture tools used will make your task of the export of agriculture products much easier. For this, you can actually go through relevant information about the agricultural practices available online. Any sort of an advance idea about agriculture will help you in every step within the export.
Indian exports of agricultural products can be divided into three categories. These are export of raw products, semi-raw products, processed and ready to eat products. Various agriculture projects are run by the government or we can say the department of agriculture which includes APEDA on a large scale. Moreover, agricultural subsidies are provided for the promotion of agriculture export from India.
Moreover, India’s agriculture sector is so vast and it performs various types are agriculture farming i.e. poultry farming, goat farming, greenhouse farming, integrated farming, green farming, commercial farming, intensive farming, organic farming and dairy farming. Apart from all this, as per modern agriculture, Indian farmers use modern agricultural practices for enhanced results.
- Type of business
- Market and target customer
- Type of goods
- Target country
- Register your business
- Cost and pricing
- Billing and payment
- Packing and delivery/shipping of goods
Type of agriculture business you can establish
There are existing three categories and you can choose any of them as per your interest and requirements. These categories are classified into Export Management Company, Export trading company and Import/Export merchant. Each of them has its own benefits.
Export Management Company: It manages details regarding the hiring distributors, develops marketing materials and to prepare shipping logistics.
Export trading company: it researches the needs of the buyers and finds companies who can meet those needs.
Import/export merchant: They purchase products from the manufacturer then resell them in the global markets.
Moreover you need to avail export license
to import export agro products to/from India.
Focus on market and target customer
After deciding the type of business that you are interested in practising, the next step would be to choose the market you are planning to target because your choice of market will provide you with target customers
Mark the following things while researching about the market and target customer:
- The customer to be served
- Target areas
- Products that will be offered
Your target customer will always be the one who is further willing to export these products and services in the market or in other countries. Your target areas will always include the places which have actual demands of your product. For more data regarding target market you can go through largest export partners
Type of Agricultural Goods
Once you are done with defining the target market and target customer, you can export agriculture products and then the very next step will be to decide which agro product you want to deliver. As per the research, you can know what agricultural products are in demand and you can even get help from various agriculture companies. Get detailed information about agriculture products that you can export. Moreover, deal within the product about which you have relevant knowledge. Getting into something new without any knowledge can make you fall into trouble.
For help, you can go through the list of agriculture product exported from India
List of fruits and vegetables exported from India:
List of fruits:
Mangoes, Walnuts, Grapes, Bananas, Pomegranates
List of vegetables:
Onions, Okra, Bitter Gourd, Green Chilly, Mushrooms and Potatoes
Focus on the target country
Began with identifying countries to which you can export agro products. See what kind of demand for your product exists there. What is the competition level for your product? Question yourself
- Do you have any connection in abroad?
- Are you having the product arrangements?
- How you will ship to that country?
- How you will approach them?
Once you are done with narrowing down the list of target countries, do some research about their requirements and other necessary things including tariffs, registration and required documents.
For this, you can see agriculture products exported from India and to which countries the agro products are exported.
For example the United States, Canada, Chile, Ecuador, South Korea, Malaysia, Taiwan and Iran.
How to register your business
At the initial level, you will have to register your company to get authentication within the country and to get the export license. These are initials that you will have to pass through. Only after getting registered and getting the export license you would be allowed to export agro products. Ministry of agriculture or we can say the department of agriculture and APEDA will help you out in getting these.
For step by step guide for registration, you can go through setting up business in India
and how to start export business in India
Cost and pricing for your services
Decide the cost and pricing specific to your product. Do some research and examine what your competitors have charged for similar products. As per that decide what price will be relevant to your product.
Decide what type of payment you will charge from your buyer. All this falls within successful exporting of agro products. Moreover you can go through export pricing and costing
Billing and Payment
Generate the accurate bill as per the number of products you are delivering and as per the price that was negotiated with the buyer. Followed by, define the mode of payment that you will accept and the tenure within which the buyer has to pay you the overall amount. You may opt Letter of credit, documentary collections and open account any of these relevant to you and your buyer as a mode of payment.
For more accurate and insight knowledge for the available mode of payment go through trade finance
Packing and Delivery
This is an important part of exporting agricultural products.
Packing is basically for the protection of the products from external environmental factors. It involves designing and creating a container for the product. It can be further classified as primary secondary and tertiary packaging. The product must be packed strictly as per the buyer’s instruction. Moreover, it helps in the easy and safe shipment of your product.
Delivering is one of the end steps of the process of exporting goods. One of the crucial things in export is delivering the product to the buyer. It must also include Hiring a customs clearing or can use your own freight forwarder.
Planning for the delivery of the shipment must be done in advance in order to perform it efficiently and on time.
You have to ship goods from one country to another, therefore, ensure all shipping details in advance.
The agriculture business either in terms of exports or imports is for the people who know how to organize things and work within a mindset. One must ensure that all the rules regulations, paperwork, documentation and other specific information are known to them before getting into the business. If done with an effective strategy it will result in good relationships, high business growth, repeated orders and many more things.
Further you can go through:
How to export agro products from India
How to export rice from India
Onion export from India
Procedure to export agricultural products from India
Tea export from India
Basic planning for starting export business
Export risk management
Export pricing and costing
Complete Guide to Goods and Service Tax (GST)