How to Start an Organic Food Business in India: Step by Step Guide

By seeing the harmful effects of chemical fertilizers, organic foods have come into the boom. Starting an organic food business is profitable and is gaining speed growth in India. The increase in awareness of the benefits of organic products has boosted the growth of organic businesses. Most of them are following healthy living style with these organic foods. The business has grown more even during the odd times. Let’s check out how to start an organic food business in India.

In the future, the organic business will grow more than 25 percent, as per the recent survey analysis. Why can’t it be your choice to start this business immediately. Make money by starting a small organic food business. This will not only increase your income but also help the environment by decreasing pollution. Hence, it has a huge scope to flourish in the near future. You can simply go through this blog to get a complete picture of how to start an organic food business and make it a successful venture.

How to start an organic food business in India

Craft a good business plan

Before starting any kind of business, you need to craft a business plan by considering all the checklist of requirements, like licenses and permits, the area required, store locations, investment plans, advertising, etc.

Licenses and permits

For developing a business, the person should have complete knowledge and facts about these organic foods and their evolving trends. The organic food business is governed by Section 22 of the Food Safety and Standards Authority of India (FSSAI) and is mandatory to be certified, labeled, licensed, registered, and certified.

Apply for FSSAI registration

It is obligatory to get the Indian Organic certificate which certifies the products that are produced do follow the national standards for organic products. When the business gets a certificate under Pradhan Mantri Kaushal Vikas Yojana, they should not export the products. It is important to have a third-party certification by The Agricultural and Processed Food Products Export Development Authority (APEDA) for export. These food industries should approach FSSAI for food license purposes for five years validity.

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Apply for FSSAI registration — Image Source

FSSAI Registration license is delivered if the turnover is lower than 12 lakhs
FSSAI State license is provided if the turnover is greater than 12 lakhs
FSSAI Central license is provided when the turnover is more than 20 crores

They must apply for any state government license to start the organic business it is essential to take consent from health departments. The owner has to case an Employee Identification Number (EIN).

Labeling

The FSSAI made the license mandatory criteria for this type of business. If the business gets a license, then the product should have an India Organic Certificate in all of the products. The body should get a voluntary logo from the FSSAI. The Food Safety and Standards (labeling and packaging) Regulations 2011 states that the enlisted particulars must be labeled in the packet.

Name of the food, the nutritional information, and labeling.

Existence of any food additives and if it is Veg/Non-veg
Complete particulars of the packer/ manufacturer
Net quantity
Particulars such as Lot no. / code no. /batch no.
Manufacturing date
Usage and its expiry date
Guidelines to be followed

Documents required

Apart from the FSSAI License, Registration and the compulsory certifications, the below documents are needed to start an organic food product business in India:

Business certificate
ID proofs like driving license, Aadhar card, PAN card, or voter ID are acceptable.
NO
Consent from the State Health Department
India Organic Certificate

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Store location for organic food business

The location of the store plays a major role in its success. Even though the market for organic food is profound, it is significant to know that everyone may not be a potential customer. It is not confirmed that a significant location will guarantee success, but a bad location will almost mostly guarantee failure. A location with a sensible degree of safety access to public transportation. Also, suitable parking is suggested.

Also, look out for the opponents in the area. Smaller the competition, relaxed is the sales. The finest location combines affordability, visibility, and lease terms you can live with. In specific, a departmental store is more successful in newly established areas. Rent for a place can be as less as Rs 10,000 to Rs 10 lac subject to city, size, and location of the departmental store. Well, it must not be more than 4% of sales on the safer segment.

Hiring employees

To operate a store, you will need to hire employees for cashier roles, sales associates to bookkeepers, etc. You will require help attending to your customers, too though you can manage in the initial stages as per the budget constraints.

Customer experience

Educating your staff on natural and organic food products will provide a pleasant in-store customer experience that will in turn raises the chances of returning customers. Staff training is an important segment and is one of your marketing strategies. It is essential to educate your staff on organics and naturals to make your efforts feel reliable to your clients.

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Upfront investment

Organic goods are inclined to be extra expensive than their non-organic counterparts.

Set reasonable selling prices

It is well-known fact that the price of goods in a non-organic store is much less than the good from an organic store. In spite of this, in case the demand for your organic goods is too much for your consumers’ ears, they will buy from other places, so make sure you keep these below points before fixing the price.

Fixing the prices by comparing with the costs set by other closely placed organic food stores.
If no other organic stores are in the vicinity, then you must know the profit details that a non-organic store makes after retail of every item. Now, approximately base your costing on that.
If you set, your costs too low may incur a loss.
Costings too high may turn off price-based clients.

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Set reasonable selling prices — Image Source

Advertise your organic store in offline

While the thought of promoting your organic food products and natural products, these below pints should be in mind:

Local promotion are methods to motivate traffic to your store.
Specifically, focus your advertising attempts on drawing clients who are fascinated in buying organic goods.
Placing an ad in the paper and by distributing posters or flyers by making a flyer or brochure to your natural and organic products around city/locality.
Keeping some sort of promotional coupons to attract potential clients into the shop.

Profits in organic food business

Starting you can observe a slow pace in profits. Later, after making aware of your organic food products, you can see a very rapid increase in your profits. You have to make a list of your competitors and can give a reasonable price than them. In this way, you can attract customers first. More than this, you have to attract customers with quality.

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Profits in organic food business — Image Source

Conclusion

Starting an Organic Food Business is really a great idea as it saves the environment and gives many health benefits to the consumers. The profits will also be there at a steady pace if you provide good quality and run the business by following all the necessities. You also have to be careful about the ins and outs to earn good profits.

How to Start an Organic Food Business in India: Step by Step Guide

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