Agriculture Product Export: The food space in India is today thriving at a breakneck speed metamorphosing into a future global leader.
Going on the lines with the Annual Report of the MoFPI for food processing 2024-25, the agri-food exports from India pirouetted above the USD 46.43 billion ceiling during the year 2023-24, which represented 11.7 percent of the entire Indian export.
Such figures speak much beyond their sheer numbers- it definitely speaks for the way India has been making its way into the global food supply chain. The start-ups can build on this very strong foundation for processing and exporting cereals, spices, dairy products, sea foods, and plant-based proteins.
The global consumer that looks for healthy and affordable sustainable foods is on the other side. India has always had a good reputation in terms of providing with and far beyond such really high demands, backed by its vigorous agrarian background and massive entrepreneurial spirit.
Yet again, the reality part of this very exciting industry is not just about excitement but has to do with the kind of thinking and focused execution. Startups have to make the best use of such modern government schemes like PMKSY, PMFME, and PLISFPI, while creating credible business models compatible for export.
This article will walk the reader from the starting point through sound ways of gathering information to possible up and running business opportunities with MoFPI in transnational terms.
Read More: 55 Most Profitable Micro, Small, Medium Scale Food Processing (Processed Food)
Overview of Indian Agri-food Export Scenario
Performance of Exports 2023-24
The agri-food exports from India were worth USD 46.43 billion, accounting for around 11.7 percent of the Indian total export in value terms for the year 2023-24.
Processed foods comprise around 23.4 percent of this export figure, which indicates the exporters gradually increasing value in their products and moving towards higher profits and global competitiveness.
Major export categories.
- Cereals (rice, wheat, maize): 10.9 billion
- Spices, coffee, tea: 4.7 billion
- Meat and seafood: a combined 10 billion U.S. dollars
- Processed fruits and vegetables: 1.15 billion
- Sugar and confectionery: 3.29 billion
- Dairy, honey, and eggs: 625 million U.S. dollars
Comparative Competitiveness
On exported milk, pulses, and onions Goa tops; second is rice and fruits; the third place goes to vegetables; however, fast coming up have been the others among plant-based foods exported to the EU, USA, and the Middle East.
New products of the latest companies to hit the gold turndown now include entire lines of ready-to-eat meals, fruit extraction, dehydrated powder, oleoresins, and nutraceuticals but have now graduated from just exporting raw products direct at the doorstep.
These contribute a lot of global demand and generate enormous export value to India.
Read More: Top Business Opportunities in the Food Processing Industry in India for EntrepreneursÂ
Why Agri-food Exports Appealed Typically to Start-ups: Rising Global Demand
Eating healthy, organic and plant-based, which consumers worldwide accept, are packaged prima facie, and the demand for middle-class Asians and Africans has increased as purchasing power increased.
Strong Government Incentives
The 100% FDI in food processing is allowed in India, with a low GST for several processed products. In addition, NABARD and SIDBI have approved agri-food projects for special loans.
High-Profit Margins
By processing perishable commodities, one can earn 2 to 3 times more. Dehydrated onion powder has a high margin as compared to raw onions. Cold chain plus packaging business also increasing shelf life and export value of the products.
Low Entry Barriers
Small startups can be wee easily to niche markets for entry within organic snacks, millet based meals, herbal teas, or ethnic foods. However, much awaited by international markets, very few such exporters came from India.
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Schemes supported by MoFPI for Startup Growth
PM Kisan Sampada Yojana (PMKSY)
This scheme promotes projects such as Mega Food Parks, cold chains and agro-processing clusters that aim to reduce food wastage and create world-class infrastructure. It also paves the way for efficient linkages from farm to factory, ensuring agricultural produce is processed quickly and profitably.
Startup Benefit: You can set up your own processing unit at much lower cost or join a pre-existing cluster that shares some facilities to save costs on infrastructure.
PM Formalisation of Micro Food Processing Enterprises (PMFME)
This program aims at upgrading two lakh small food units under a 35 percent credit-linked subsidy. It builds-up the ‘One District One Product (ODOP)’ for promoting entrepreneurs to market one particular product unique to their area, such as mangoes, pickles, papads, or other traditional snacks.
Startup advantage: You can build export-ready brands around local specialties and convert regional products to internationally popularized products.
Production-Linked Incentive Scheme for Food Processing Industries (PLISFPI)
This scheme offers incentive awards to companies who expand their sales and exports of actual food value-added products. It promotes innovations, automation, and diversification of products for domestic and international markets.
Startup Advantage: It allows you to create export-oriented food brands and enhances the production capacity, under this scheme, helping in earning some government benefits.
Nivesh Bandhu Portal
Nivesh Bandhu is an online portal that brings together all information regarding raw sources for material inputs, infrastructure, incentives, and export data across all states of India. Besides that, it connects new companies to potential investors and policymakers.
Startup Advantage: Use this one-stop digital platform to strategize and execute investment options, map clusters, and connect instantly with investors.
Rare Business Prospects for Startups
Opportunity 1: Cereal & Grain Processing
Cereals exported from India, worth USD 10.9 billion, leave huge leeway for innovative players. Startups may design ready-to-cook rice packs, millet-based foods, and gluten-free flours for health-conscious customers in the Middle East and Africa.
Smart packaging plus branding can help add value and secure premium export margins.
Opportunity 2: Spices, Tea & Oleoresins
India accounts for about 70% of the global spice export business valued at USD 4.7 billion. Entrepreneurs can produce oleoresins, spice oils, and herbal tea blends to entice high-end buyers in Europe and the USA.
Additionally, organic premium labeling and aroma preservation technology can make these exports more competitive.
Opportunity 3: Meat, Fish & Seafood Processing
The sector with exports worth USD 10 billion gets a number of growth prospects. Startups can export frozen seafood, ready-to-cook meats, and halal-certified snacks to cater to the increased demand from Southeast Asia, the Middle East, and Europe.
Similarly, modern cold chain systems can help with the shelf-life and quality assurance.
Opportunity 4: Processed Fruits & Vegetables
The high wastage of fresh produce in India provides an excellent chance for new startup firms. They can be processing dehydrated powders, canned fruit juices, and freeze-dried vegetables for markets in Africa and Europe.
Furthermore, innovations in sustainable packaging and longer shelf-life can significantly boost exports.
Opportunity 5: Sugar, Confectionery & Cocoa
With the export potential pegged at USD 3.29 billion, startups can make organic jaggery, sugar-free candies, and chocolates with a distinctly Indian flavor. A fusion of traditional flavors with new health trends will attract global buyers in search of authentic yet healthy treats.
Opportunity 6: Dairy, Honey & Egg Processing
With an ever-expanding potential for value addition, this segment exports USD 625 million worth of products every year. Startups can manufacture lactose-free dairy foods, organic honey, and protein-rich egg powder for health and fitness markets all over the world.
In addition, premium packaging and clean-label branding could create initial trust, ultimately leading to global recognition.
Agriculture Product Export: Opportunities Await With The Import And Export Contrast
- Edible oils ($15 billion Imports): Make cold-pressed oils and oilseed products.
- Cocoa (512 million Imports): Start local chocolate and cocoa processing.
- Beverages and Vinegar ($1.5 billion Imports): Prepare fruit-based wines and vinegar using the local fruits.
Agriculture Product Export: Startup Success Stories
- LT Foods (Daawat Rice): They started small, increased their exports, and now are a global rice brand.
- Paper Boats: It revived traditional Indian drinks in modern packaging and exports worldwide.
- MDH and Everest Spices: Two family-run MSMEs who became world-famous spice brands.
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Agriculture Product Export: How NPCS Can Help You
Niir Project Consultancy Services (NPCS) will ensure the transformation of your promising business idea into a successful reality.
The staff compiles thorough Market Surveys as well as Project Reports (DPRs) with all the key facets-from market trends and production processes to machinery planning, financial projections as well as profitability analysis.
An expert data analysis-supported understanding of in-depth industry insights into making the right product choice, investment planning, and designing efficient factory layouts as well as looking for export potential (Agriculture Product Export).
This presents professional assistance using facts and figures, resulting in lowered business risks by attracting funding and facilitating seamless expansion into the fast-growing food processing market in India (Agriculture Product Export).
Agriculture Product Export: Startup Roadmap—How to Start
- Market Research: Visit the Nivesh Bandhu site for industry and export data.
- Choosing Your Product: Choose hot-selling categories-grains, spices, dairy, or RTE foods.
- Schemes: Undertake funding of the PMKSY, PMFME, or PLIS.
- Technology: Installation of cold chains, packaging, and automation.
- Branding & Quality: FSSAI, HACCP, and other international standards.
- Export Market: Target key markets-Middle East, Africa, EU, and US.
- Help: Tie up with NPCS for feasibility studies and scale-up strategies.
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Agriculture Product Export: Conclusion
The agri-food export sector today is a $46 billion worth opportunity for startups in India. Global demand is rising and supported by government policies, and there are plenty of raw materials to build an export-oriented food business with profitable prospects confidently (Agriculture Product Export).
Smart use of the schemes of the Ministry of Food Processing Industries (MoFPI) together with the expert advice of NPCS can facilitate startups from idea to international success.
The world market is currently looking for good food products from India, so it is truly the right time to act and grow on an international platform (Agriculture Product Export).
Agriculture Product Export: FAQS
Q1. Why are agri-food exports important for startups?
Ready global markets, good margins, supportive governments for the growth of exports.
Q2. Which products show good export potential?
Cereals, spices, dairy, seafood, ready-to-eat meals, and organic snacks (Agriculture Product Export).
Q3. Where can I get funding or support?
PMKSY, PMFME, and PLISFPI grants and subsidies can be obtained (Agriculture Product Export).
Q4. What is the role of technology in food processing?
Technology intercedes with quality enhancement, waste reduction, safety assurance, and export preparedness (Agriculture Product Export).
Q5. How can NPCS help would-be entrepreneurs?
The NPCS provides an entire range of project reports, market intelligence, financial planning, and expert guidance for establishing and scaling their startups successfully.
