How To Start Soil Testing Business In India

Introduction on how to start a soil testing business in India

Providing soil testing service is an understanding based business. You must have the awareness and skill associated with this business. However, if you are not having it, you can gain knowledge through practical training.

A step by step guide to start a soil testing business in india

Here in this post, we will give some interesting ideas on the soil testing service business plan for your ready reference.

Purpose of soil testing

The land is perishable and as days are passing the amount of land is reducing because of the growing population and fast urbanization. Thus, the need for maximizing productivity from a specific piece of land is growing. In the present scenario, one can’t go for a singular crop from a piece of land. Moreover, farmers are seeking to get maximum yield through minimum agricultural inputs and this is where soil testing comes into action.

Eligibility to start a soil testing business

This business is perfect for individuals who have some knowledge of agriculture or biotechnology or microbiology or chemistry. When you are an agronomist, you can consider this business as the best one. However, only passionate individuals can begin this business with consistent commitment.

Business plan to start a soil testing business

You can start the business with two models. One is an immovable soil testing laboratory and another is the mobile soil testing service. In the first option, you can the soil that is obtained by your lab. And after getting the result, you should deliver the report to your client’s email address.

In the second model, you will set up the laboratory as a mobile setup. And you offer a service like a mobile basis. In this case, you can get the soil samples from the farm directly and you will give your clients instantaneously. This latter option is more profitable than the previous one. However, this model requires more capital investment than an immovable one.

What services you can offer in this business

A soil testing service business can provide a wide range of services. You can begin on small scale basis as well. Later you can scale up gradually as you gain confidence from the business. When you set-up a laboratory, then it comes with a wide range of prospects for you. Apart from agriculture, you can even cater to food and food processing industries. Apart from that, you can provide the service to the companies that are related to:  

• agrochemicals,
• biofuels,
• financial and insurance industries,
• seeds,
• fertilizers,
• farm machinery and supplies,
• storage,
• processing facilities,
• logistical construction, and
• preparation of fresh produce for market and prepared food products.

List of services offered in soil testing business

Determining the suitability of the soil and to assess whether it can be approved for the client’s farming plan.

• Providing basic services for instance Buffer pH, pH balance, P205, Ca, K20, Mg, Cation Exchange Capacity (C.E.C.), with or without Lime/Fertilizer Requirements.
• Soil Texture Characterization
• The conductivity of the soil
• Availability of the organic matter in the soil
• Secondary and micronutrient availability or shortage in the soil.
• According to the crop, the necessity of soil preparation, etc.

License, registration, and permissions required to start a soil testing business

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These are the basic legal documents that you have to get registered or to acquire licenses. If you want to start your own soil testing business then you need to get the following registrations.

Registration of firm: For starting any kind of small to medium scale organic fertilizer business you need to get registered for either a proprietorship or partnership firm.

Note: You need to make a note that these websites vary based on the place where you are willing to start your business. 

GST registration: For any business, the GST number registration is compulsory as per the GST rule, tax identification number along with insurance certificate. For GST registration online, this is based on the turnover of your project. So, it is better to go through all the guidelines perfectly. 

Trade license: You need to register your business name and for that, you need to register for a trade license from your local authorities.

MSME/SSI registration: Getting MSME/SSI registration will ensure that you are eligible for government schemes and facilities. So if you are willing to avail of the government subsidies or schemes regarding your business then you must have to apply for MSME/SSI registration. 

Trademark: You need to register your brand name with a trademark this helps you in protecting your brand in the future if you think to expand your business. 

IEC code: If you are willing to export your product to other countries then you get the IEC code which is mandatory for export-import business for any kind of business. You also need to acquire permission from District Agriculture/Soil Conservation Officer.

Investment required to start soil testing business in India

The majority of your capital account for space and the laboratory equipment. If you are a beginner here in this segment, then we suggest you not to purchase the space. Just start the business by acquiring a rental space. Along with a laboratory, you should keep a small office as well. Because you have to obtain the soil samples, must raise the bill and receive the payment.

Apart from the fixed cost, you should arrange the working capital. It includes obtaining the laboratory chemicals, payment of utility bills, manpower, and expenses associated with the advertisement.

Check whether you have the possibility to avail of the government subsidies or not for this business. Indian government provides financial support to the entrepreneurs who are willing to the soil testing service business.

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Important points to note before starting soil testing business

When starting the business, first, design a proper business plan. You have to identify several aspects such as what is the service you desire to offer, how much capital you must allocate, how you can publicize your services, etc.

Plan the manpower needed as a major portion of working capital goes to pay the employees.

Check the licensing and permission related aspects in your locality. It mainly depends on your area. Additionally, have a clear idea about the tax liabilities of this business.

Keep a marketing technique. You should take care of promoting your business in a proper way. You must know your target demographics and should be well-versed in the services you are offering.­

Procure good quality testing equipment. Because upgraded and modern equipment always shows the precision of the testing result.

The farmers’ training session is the most efficient method for spreading awareness.

You must create an informative platform in the form of a website. Put your company information, contact details and service related information clearly. Additionally, add a guide for gathering the soil samples for testing.

Soil testing service is considered to be a self-rewarding business. However, you should incur the passion, determination, and commitment to get the long sustaining success in this segment.

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