Agri Export for abundant income... Successful strategies! Part 9
There exists a great scope for export of chillies and millets. Particularly, of all the commercial crops, the sun dried chillies enjoy a great demand in the export. This is known as dried chillies or vathal or sun dried chillies in different regions. Again, it is in four different shapes such as round, short, lengthy and spring that are being exported.
Similarly, it is exported to various countries in the names of Sanam, Wonder Hot, Bayadhji and Teja. Chillies originated from South America and were introduced to India by the Portuguese during 15th century. The colour and the taste of these chillies are unique. The length of the chillies meant for export should be 3-4 inches. Normally, those with tuft (kambu) are exported to Malaysia and those without the tuft are being exported to Singapore.
In India, Andhra Pradesh stands at first place and Tamil Nadu at the seventh place in terms of production of chillies. Production and stocking are more in Guntur, Ramanathapuram and Davangare regions. In general, more reddish it is, it will be less hot and this type is consumed more. While Spring Chillies have good demand, quality chillies are usually in great demand for export market.
Chilli powder has to undergo Aflatoxin test for export. After the fitness certificate, the chillies are required to be packed in gunny bags of 10 KGs. each. The aflatoxin and colour tests are mandatory for export to other countries. The chillies are purchased at the rate of Rs.110/- to Rs.125/- per KG. The exporters need to be members in the Spices Board of India. Normally,5 to 6 tonnes of chillies can be loaded in a 20 feet container which is worth Rs.6.5 to 7 Lakhs. Export of chillies is eligible for 5% subsidy from Government through MEIS. There is a considerable demand for chillies in the countries of Sri Lanka, Malaysia, Singapore and Dubai.
In particular, Sri Lanka imports more chillies as domestic production is very less. Hence, it would be wise for new exporters to choose Sri Lanka to start with. For exporting green chillies . export certificate from APEDA (Agricultural & Processed Food Products Export Development Authority) is compulsory. Similarly, Malaysia and Singapore are ideal for exporting green chillies.
When it comes to millets, ragi and rye are exported more. There has been a steady growth in the export of millets. During 2017-18, India earned around Rs.373/- crores from 1.5 Lac tonne export of millets.
It is essential to obtain a certificate to the effect that these products are exported to other countries only for their consumption and not as seeds. Apart from this it is mandatory to be a member of APEDA body. These products are exported not only for consumption as food products but also for medicinal purpose. Particularly, in Penang State of Malaysia, the ragi is imported by them for morning porridge after breakfast. If proper awareness is created abroad still, the export trade of these products will expand manifold.
Importance of Brochure: It is important for the exporting company to have a decent and appealing brochure containing details pertaining to the name of product, APEDA membership particulars, product details like quantity and contents etc. The size of the brochure can be A4, A3 or even A5. The availability of brochure will create more awareness and knowledge of the products exported in an instantaneous manner.
Tax Invoice: Tax Invoice is one of the fundamental pre-shipment documents such as proforma invoice, sales contract and commercial invoice.
If it involves GST, we must prepare tax invoice and submit it to the Customs agent. This will help us to get the tax reimbursed if we do this before preparation of shipping bill.
Form Rex or GSP: Form Rex was formerly called GSP. This form is necessary only in respect of European countries wherein they are exempted from payment of Customs duty. This will help the importers to take delivery of the goods without any delay or difficulty. This must also be brought to the notice of the Customs agent.
Form SDF: This is known as Statutory Declaration Form which needs to be submitted to Reserve Bank of India as per their guidelines. This is to confirm that the invoice value of the said export would be settled within 9 months from the date of despatch. Though we normally get the payment in advance, this requirement should be met with.
Question & Answer:
@Gopi: How do we obtain Certificate of Origin? Is it absolutely necessary?
There is no question of compulsion to obtain documents like this for export. However, if it is required by the importer, we must make it available. Certificate of Origin is just like our Birth Certificate. This provides proof to the effect that the particular product is manufactured in India. This document can be collected from the website of the Federation of Indian Export Organisations (FIEO) under ‘Product of India’ classification. This certificate can be taken for a particular product which is meant for export. Members of FIEO are required to pay a fee of Rs150/- while non-members have to pay Rs.250/- for getting this certificate.
Federation of Indian Export Organisation,
706, Spencer Plaza,7th Floor,
769, Anna Salai, Chennai - 600 002.
Tel: 044 28497766, 28497755, 28493333.
K.Vijayaraghavan / Kancheepuram:
I intend buying and exporting Areca leaf plates, cups and related handicraft articles to other countries. Please confirm under which category these items appear and also the possible countries to which I can export these.
Most fortunately, presently, these items have a great demand due to the abolition of plastic goods in our State. You can certainly aim to be become an lucrative entrepreneur in this trade. As regards handicraft goods, there is a vast scope in Germany and Canada. The eligibility condition is that we must be a member in the FIEO (Federation of India Export Organisation). Development Commissioner, Handicrafts, Ministry of Textiles will provide details regarding the quality and manufacture of these items for export. It's Southern Region wing is in Chennai and its branches are situated in Salem and Nagarkoil.
Office of DC(Handicrafts),
26, Haddws Road,
Chennai – 600006.
Tel: 044 28276321. 28237908, 28251201
(This article was written in Tamil by K S Kamaludeen for Pasumai Vikatan magazine dated 25/01/19 has been transcreated in English by P.S.Ramamurthy)