The start of India’s honey export industry dates back to 1991. Since then, the progression has been their and now India has the rank of the 6th largest honey exporter in the globe. Over the past decade alone, India’s honey exports have been increasing from US$ 56.2 million to impressive US$ 100.8 million, with going expansion. In this blog, we shall see the process of exporting honey from India.
The Demand for Indian Honey
India is the 6th largest exporter of honey, and the demand for Indian honey has been rising driven by global factors and specific qualities that make it appealing.
The world widely demand for the honey is experiencing a significant growing trend. This trend is attributed to the increasing global awareness of health and a growing preference for natural sweeteners over sugar and artificial alternatives. Honey, being a popular substitute for sugar, has witnessed heightened demand. The pervasive growth of the internet has played a pivotal role in disseminating information about the health benefits of honey, contributing to this surge.
Post-Pandemic Surge in Demand
Another factors influencing the demand for Indian honey are the surge in consumption post-pandemic. Honey is recognisable for its antibacterial properties and role it has in boosting immunity. As health-conscious consumers seek products that enhance their well-being, honey is positioned as a favourable choice.
India stand to benefit from the international political climate, presenting a favourable environment for honey exports. Using this advantageous position, those considering honey export businesses from India have a promising opportunity to do so profitably. This alignment with global trends and circumstances positions Indian honey as a sought-after commodity in the international market.
Legal Requirements for Initiating a Honey Business in India
The legal requirements for a honey business in India are:
· Product Type and Regulatory Compliance
Understanding the nature or properties of the product is crucial when going to establishing a honey export business in India. If the product falls under the category of food or edible items, it becomes subject to the regulations set forth by the Food Safety and Standards Authority of India.
· Business Structure and Registration
The choice of business structure, carries legally implications. Entrepreneurs must register their honey business according to the chosen structure and adhere to the relevant rules and regulations governing their business type. Additionally, compliance with India’s tax laws is a mandatory aspect of running a honey export business.
· Geographical Considerations and Export Laws
The geographical aspect of selling honey is a critical determinant of the legal framework. Exporting honey from the country to globally involves navigating the Foreign Trade (Development and Regulation) Act, which outlines regulations for outbound trade. Simultaneously, entrepreneurs must be aware of the import laws of the destination countries. Understanding and adhering to the food standard-related laws of the target countries is equally vital to ensure seamless cross-border transactions.
Mandatory Licences and Regulations for Exporting Honey from India
The mandatory registrations needed for exporting honey from the country are:
· FSSAI Licence Registration
Running a food business, including the export of honey, necessitates obtaining a FSSAI Licence or FSSAI registration. This licence having a validity for five years, is a prerequisite for export honey from India. Entrepreneurs must ensure compliance with FSSAI regulations and can renew the licence after the initial period.
· India Organic Certificate for Organic Labelling
For those intending to labelling their honey as organic products, securing an India Organic Certificate is mandatory. This certificate can be acquired from either the National Program for Organic Production or Participatory Guarantee System for India (PGS-India). Adhering to the FSS-Packaging and Labelling Regulations of 2011, only after obtaining this certificate can businesses use the term ‘organic’ in their honey packaging.
· DGFT Registration for Import and Export
To engage in the exporting honey from India, businesses must register with the Directorate General of Foreign Trade. This registration is a crucial step in ensuring compliance with the regulatory framework governing international trade.
· Adherence to Import Regulations of Destination Countries
Apart from fulfilling Indian regulation, exporters must have to also comply with the import regulations of the countries to which they are exporting honey. Understanding and obtaining the necessary licences from the destination countries are imperative for smooth cross-border transactions.
· Codex Alimentarius Commission Standards
The Codex Alimentarius Commission sets global standards for honey. Most countries, including India, adhere for these standards. However, some countries, such as the United States and the United Kingdom, may have slightly more stringent regulations.
So, for exporting honey from India, exporters have got to find a series of mandatory licences and regulations. This includes obtaining an FSSAI Licence, securing an India Organic Certificate for organic labelling, registering with DGFT, and adhering to both international and destination-specific import regulations. Compliance with these requirements is essential for legally and successfully exporting honey from India.
Process for Exporting Honey from India
Mentioned below is the process for exporting honey from India:
1. Business Registration:
Begin by registering your honey business, choosing between a startup or MSME Udyog registration.
2. Basic Requirements:
Fulfil essential requirements such as tax registration and trademark registration to establish a solid foundation for your business.
3. FSSAI Certification:
Adhere to the guidelines provided by the Food Safety and Standards Authority of India while developing your honey product. Obtain FSSAI certification to ensure compliance with food safety regulations.
4. CAC Standards Compliance:
Follow the standards set by the Codex Alimentarius Commission during the production of honey. Additionally, research and understand any specific laws regulating exporting honey from India into the destination country.
5. DGFT Registration:
Apply for registration with the Directorate General of Foreign Trade in India to facilitate hassle-free import and export of goods.
6. Customs Handling and Clearance:
Establish the necessary infrastructure for customs handling and clearance by collaborating with a customs agent. This ensures a smooth process when exporting honey.
7. Find a Buyer or Distributor:
Identify and negotiate with potential buyers or distributors in the target country. Establish a contractual agreement that outlines the terms of the export transaction.
8. Health Certificates and Labels:
Obtain all required health certificates and labels necessary for the export of your honey product. Ensure compliance with both Indian and destination country regulations.
9. Country Clearance:
Seek clearance from the authorities in the destination country. This final step is essential to gain approval for the entry of your honey into the target market.
By systematically following these steps, you can navigate the process of setting up a honey business and exporting honey from India.
Final Thoughts
Successfully exporting honey from India involves a thorough process. From business registration and compliance with FSSAI and CAC standards to securing DGFT registration and negotiating contracts with overseas buyers, each step is crucial. Attention to health certificates, labels, and adhering to destination country regulations ensures a smooth export process. Collaboration with customs agents and obtaining country clearance adds to the seamless execution. The process mentioned in this blog underscores the importance of legal adherence, quality standards, and strategic partnerships for a thriving honey export venture from India.
