How can I become an agro exporter?
How can I become an agro exporter?
Blog Article
Exporting is a very broad concept in itself, and an exporter needs to do a lot of preparations before embarking on the journey as an agri-exporter. This can be a booming venture of the present that can give you good recognition in the global agricultural market. In India, the Agricultural and Processed Food Products Export Development Authority (APEDA) serves as the central agency facilitating agricultural exports and emphasizes the importance of strategic planning, adhering to regulations, and leveraging available resources to start an agro export business .
In this blog, we will discuss the important steps related to the agro-export business, so the following steps can be followed to start an agricultural export business:
Develop a Comprehensive Export Plan:
Good planning means success in business. You need a well-structured plan to start an agricultural export business. You can start your business by doing market research to find out the demand for your agricultural products in the markets. Use resources like USDA's Foreign Agricultural Service (FAS) for market reports and business leads. Additionally, consider the impact of U.S. free trade agreements (FTAs) on your export strategy.
Obtaining Importer-Exporter Code (IEC) Number:
An IEC is a 10 digit number which is mandatory for undertaking export/ import. Application for obtaining IEC Number can be submitted to Regional authority of DGFT in form ANF 2A along with the documents listed therein. Applicants can also apply for e-IEC on the DGFT website (http://dgft.gov.in/). Only one IEC can be obtained against a single PAN. (To apply for IEC http://dava.gov.in:8080/dgftiec/panSearch.jsp)
Register with APEDA:
After getting your IEC, your next step is to register with APEDA to obtain a Registration cum Membership Certificate (RCMC). This registration is important for exporters of scheduled products and provides access to various financial assistance schemes and export-related services. This registration process involves submitting an online application along with the required documents.
Understand Export Regulations and Compliance:
It becomes very important for you to understand the export regulations, quality standards, and compliance requirements of both India and the destination countries as you become an agribusinessman. Because each country has some specific import requirements, which include quotas, licensing, labeling, tariffs, etc. You should establish collaborations with importers, distributors, or agents in the target market to ensure compliance with these regulations. USDA's Food and Agricultural Import Regulations and Standards (FAIRS) report can be a valuable resource for you in this regard.
Develop a pricing strategy:
If you want to succeed in international markets, it's important to establish a competitive pricing strategy. You'll need to consider factors such as production costs, shipping costs, tariffs, and market demand. Common pricing methods include competitive pricing, domestic price plus, and marginal pricing. Analyze your competitors' pricing strategies and make adjustments accordingly to ensure profitability while remaining attractive to buyers.
Leverage Financial Assistance and Support:
APEDA offers various schemes to support exporters, including financial assistance for infrastructure development, quality enhancement, and market promotion. Familiarize yourself with these schemes and determine your eligibility to enhance your export capabilities. Additionally, explore financing options to manage cash flow effectively, especially considering the time gap between production and payment realization.
Focus on Product Quality and Certification:
Maintaining high product quality is essential to building a reputable export business. Make sure your agri products meet international quality standards and obtain the necessary certifications, such as organic certification if applicable. Implementing good agricultural practices and quality control measures will increase your product's acceptance in global markets.
Build Relationships with Buyers:
As an agricultural exporter, it is important to establish strong relationships with international buyers. For this, you should participate in trade fairs, buyer-seller meets, and workshops organized by APEDA and other trade bodies to connect with potential buyers. Use APEDA's Kisan Connect portal to interact with exporters and cooperatives, thereby facilitating better market access.
Stay Informed About Market Trends
The global agricultural market is dynamic, with trends influenced by factors such as consumer preferences, seasonal demand, and geopolitical developments. Regularly monitor market intelligence reports and stay updated on the latest trends to make informed decisions. APEDA’s Market Intelligence Cell can provide valuable insights in this regard.
Comply with Logistics and Documentation Requirements:
Efficient logistics and accurate documentation are critical components of the export process. Ensure that you comply with packaging, labeling, and shipping requirements specific to the destination country. Proper documentation, including invoices, certificates of origin, and quality certificates, is essential to facilitate smooth customs clearance and timely delivery.
By following these steps and leveraging the resources provided by APEDA and other relevant agencies, you can establish a successful agro-export business. Diligence in compliance, commitment to quality, and strategic market engagement are key to thriving in the competitive global agricultural market.