Step By Step Guide to Green Chilli Export From India

Step By Step Guide to Green Chilli Export From India

Green chillies, a favorite in kitchens worldwide, offer a great opportunity for Indian exports. This guide covers everything you need to know about exporting green chillies, from why they're a smart choice to finding international buyers.

Notably, G4 Green Chilli, also known as Guntur Green Chilli, is a top player in India's export market. Its popularity is soaring due to its freshness, long shelf life, unique flavor, and perfect spiciness level. If you're considering G4 Green Chilli Export, you're in the right place to explore this thriving market.

Why Choose G4 Green Chillies for Export?

Have you ever considered how a humble vegetable could open doors to global success? Let's explore why green chilies are not merely a kitchen ingredient but also a gateway to lucrative international exports.

Opportunity in Green Chilli Export from India and Market Size

India has made its mark in the global market for green chilies, with export shipments reaching an impressive 142.3K units. These exports are a collaborative effort by 4,043 Indian exporters, reaching 7,275 buyers worldwide. The top destinations for Indian green chilies include the United Arab Emirates, Qatar, Saudi Arabia, and the United Kingdom. India proudly holds the title of being the world's leading exporter of green chilies.

 Discover instant freight quotes for your perishable exports on the Citrus APP

Government Benefits and Support

When it comes to exporting green chilies, the government offers incentives that can give your export business a valuable boost. These perks are here to support and enhance your export efforts.

  • Duty Drawback:
    When exporting green chilies, you not only expand your market reach but also enjoy certain advantages. A 0.15% duty drawback is granted, which is seamlessly credited to your account without any additional steps required. Additionally, a Customs House Agent (CHA) assists you in managing the shipping documentation, ensuring a hassle-free process.
  • Remission of Duties and Taxes on Exports:
    The Remission of Duties and Taxes on Exported Products offers a significant advantage, with a benefit of either 2% of the export value or Rs 1.3 per kg, whichever is lower. To put it into perspective, consider exporting goods worth Rs. 10,00,000. You could potentially gain a benefit of Rs 20,000 or Rs 1.3 per kg, depending on the lesser amount.
  • Interest Equalization Scheme on Pre & Post Shipment Export Credit:
    While the "Interest Equalization Scheme" primarily targets manufacturers (not merchant exporters), its impact is noteworthy. Suppose you secure a loan at a 10% interest rate; the government covers a substantial 5% of that interest. This means you only need to bear the remaining 5% interest, easing the financial burden associated with your Green Chilli export endeavors.
  • Transport and Marketing Assistance Benefits:
    The "Transport and Marketing Assistance" (TMA) scheme lends its support to select agricultural products, including green chilies. Its goal is to aid in the international shipping and marketing of agricultural goods. By mitigating the hurdles posed by increased transportation expenses related to exporting specific agricultural items like green chilies, this scheme tackles issues such as trans-shipment. Additionally, it aims to enhance the reputation of Indian agricultural products in international markets where the quality of Indian green chillies is acknowledged and valued.

Green Chilli Export Process From India

 Green Chilli Export Process from India, Citrus Freight

Sourcing Green Chilies for Exports

If you're new to exporting green chilies, it's understandable to feel overwhelmed. Fortunately, you have multiple options available. Let's start by exploring the main regions that produce green chillies.

Top States that Produce Export-Quality Green Chillies

  • Maharashtra
  • Tamil Nadu
  • Gujarat
  • Andhra Pradesh
  • Karnataka

Procurement Options: Mandis, Farmers, and Traders

If you're in the business of exporting green chilies, there are three smart ways to find your supply:

Local Markets (Mandis): These are bustling places where farmers and sellers gather to trade green chilies. You can pick up your supply here, and it's like a one-stop shop for green chilies.

Direct from Farmers: Another option is to buy green chilies directly from the farmers themselves. It's a friendly arrangement that benefits both you and the farmers. You get fresh green chilies, and they get a fair price without any middlemen involved.

Green Chilli Traders: These experts know when to buy green chilies at a good price and when to sell them at a profit. They have the timing just right, making them valuable partners for securing the best deals.

Remember, each method has its advantages. Mandis offer variety, buying from farmers is personal and reliable, and green chilli specialists are like masters in the field, guiding you to the best deals.

Understanding Green Chilli Export Packing

Proper packaging is essential to maintaining the freshness and quality of green chilies during transportation. Learn about packaging materials, techniques, and standards to ensure your exports arrive in optimal condition.

SpecificationMinimumRecommended
Material of ConstructionCorrugated Fibre BoardCorrugated Fibre Board
External Dimensions (mm)600 x 300 x 200600 x 300 x 200
Style of BoxRSC - 0201RSC - 0201
No. of Plies5.05.0
Type of FlutesB / B (Narrow)B / B (Narrow)
Direction of FlutesVerticalVertical
Grammage (g/m²)250 / 120 / 120 / 120250 / 120 / 120 / 120
Burst Factor of Paper (Kraft) (Minimum)20.020.0
Bursting Strength of Board (Kg/cm²) (Minimum)14.014.0
No. of Pieces per BoxNot more than twoNot more than two
Manufacturer's JointBy gluingBy gluing
Compression Strength of Box (Kgf) (Minimum)450450
COBB (30 Minutes)*** (g/m²) (Maximum)6060
No. of Ventilation Holes16.016.0
Diameter (mm) and Position of Holes20.020.0
Two Sides Each33
Two Ends Each11
Top & Bottom Each44
Edge Crush (Kgf) (Minimum)40.0050.00

Note: The dimensions of the box are designed to be compatible with Euro pallets. However, we are flexible and can accommodate other dimensions and box styles to meet the specific requirements of our importers.

The mentioned grammage is a guideline, and we are open to using other grammage options that offer equivalent strength and performance.

For ventilation, the standard specification includes a diameter of 20mm and 16 holes. However, adjust the ventilation design as needed to align with the chosen box style.

Tips to Find the Best Supplier for Green Chilli Exports

If you're looking for dependable green chilli suppliers for your export business, remember this crucial tip: prioritize quality and reliability. Although there are various options for sourcing, such as mandis with their diverse offerings, farmers who supply fresh green chilies, or experienced traders with market insights, the most important thing is the consistent quality of the green chilies and the dependability of the supplier. Make sure that your chosen supplier consistently delivers high-quality green chilies and has a reputation for being trustworthy. It's also a good idea to work with multiple suppliers to ensure a steady supply of premium green chilies for your export ventures.

Setting up Logistics for Green Chili Exports

Exporting green chilies successfully requires a well-planned logistics system to make sure your chilies stay fresh on their journey. Here's how to set up your logistics for success:

Choosing a Good Freight Forwarder

Finding the right freight forwarder for shipping perishable goods like green chilies can make all the difference. Here's a simple guide to help you identify the perfect match:

Perishable Expertise: Seek a forwarder experienced in handling delicate products like fruits and vegetables. Their expertise ensures your green chilies remain fresh and in perfect condition during transit.

Efficient Team: Choose a forwarder with a capable team dedicated to ensuring on-time shipments and smooth logistics for your orders.

Customer-Centric: Opt for a forwarder that prioritizes your needs. They should offer valuable advice and assist you in navigating the complexities of shipping.

Quick Quotes, Excellent Service: Look for a forwarder that provides prompt, accurate pricing and offers top-notch service. Your green chilies will be well taken care of.

Solid Reputation Online: A forwarder with positive online reviews is a reliable and trustworthy choice.

At the forefront of this field is Citrus Freight. With our expertise in perishable logistics, a skilled team, speedy pricing, and a track record of customer satisfaction, we're prepared to enhance your green chilli export business.

Setting up a Company for G4 Green Chilli Exports from India

With your supply and logistics ready, it's time to set up your company for green chilli exports. Starting an export business involves a few basic steps. You'll need to register your company and meet legal requirements. These initial steps form the foundation of your green chilli export journey.

Documents Required to Set Up a Company for Green Chilli Export

Starting your green chili export venture involves these essential steps:

  • Company Registration: To engage in export activities, it's vital to register your business as an export company with the relevant government authorities. This establishes your business's legal identity. You can choose to register your company as an LLP, Pvt Ltd, proprietorship, partnership, depending on your business plan.
  • IEC (Import Export Code): To conduct import-export transactions, you must obtain an IEC from the Directorate General of Foreign Trade (DGFT). This 10-digit code uniquely identifies your company and is mandatory for all such transactions. It enables customs authorities to recognize your company.
  • Tax Identification Number (TIN) or Employer Identification Number (EIN): These are unique identification numbers for tax purposes, though not always required for every business.
  • Trade License: Depending on your export activities, you may need a trade license for specific purposes.
  • GST (Goods and Services Tax): Enroll your export business under the GST system. This is crucial for adhering to tax regulations and accessing tax-related benefits.

Export Documents Required for Green Chili Export

When exporting green chilies, ensure you have the following export documents:

  • Invoice: This document outlines the details of your green chilli export, including pricing and the parties involved.
  • Packing List: A packing list is an itemized list specifying green chilli quantities, weights, and packaging that ensures accuracy in shipments
  • Certificate of Origin: A certificate of origin verifies the source of your green chilies, a critical aspect for customs clearance and tariff assessment.
  • Phytosanitary Certificate: A phytosanitary certificate is issued by agricultural authorities. This certificate confirms the health and compliance of your green chilies with import regulations.
  • Bank Realization Certification (BRC): This certificate affirms the realization of foreign exchange from your export venture after payment. It's a post-shipment document, marking the closure of a foreign transaction.
  • Port Registration: This involves AD code registration, Icegate registration, and duty drawback registration for successful port registration.
  • KYC (Know Your Customer): Registering your export shipment at the designated port ensures proper processing and customs clearance. It requires the submission of the necessary shipment documents.
  • APEDA / RCMC (Registration Cum Membership Certificate): RCMC is issued by Indian Export Promotion Councils or Commodity Boards, confirming your registration as an exporter with a specific council or board. It's essential for accessing export benefits, incentives, and government schemes.
  • Bill of Lading/ Airway Bill: A bill of lading is an export document that is necessary for delivering goods at the destination port and is provided by CHA/FF or the carrier as a result of transporting goods.

Test Report Documents

The following are the test report documents required for the export of green chillies from India:

  • Pesticide Residue Analysis Report: This report must be issued by a government-approved laboratory and must show that the chillies do not contain any pesticides above the Maximum Residue Limits (MRLs) set by the importing country.
  • Aflatoxin Analysis Report: This report must also be issued by a government-approved laboratory and must show that the chillies do not contain any aflatoxin above the MRLs set by the importing country.
  • Ethylene Oxide Analysis Report: This report is only required for the export of green chillies to the European Union. It must be issued by a government-approved laboratory and must show that the chillies do not contain any ethylene oxide above the MRLs set by the EU.

Finding a Buyer for Green Chilies in the International Market

Expanding your export business requires finding international buyers for green chillies. This opens new markets and opportunities.

Top importing countries of Green Chillies from India

  • United Arab Emirates
  • Qatar
  • United Kingdom
  • United States
  • Bahrain
  • Oman
  • Bangladesh
  • Maldives

How to Find International Buyers for Green Chilies

To locate international buyers for your green chilli export, a strategic approach is essential. This involves conducting market research, building a network, participating in trade fairs, and utilizing online platforms. Identifying potential buyers who share your product and quality standards is a key step in the process.

Pro Tips for Finding Buyers

Elevate your search for buyers with effective marketing and promotional strategies. Here are three essential steps to consider:

Invest in SEO: Enhance your online visibility in the global market by investing in search engine optimization (SEO).

Build a Strong Brand: Focus on building your brand right from the start and invest in social media marketing to create a robust online presence.

Leverage CHAs (Customs House Agents): CHAs often have extensive networks of buyers. Don't hesitate to ask them for referrals to connect with potential buyers.

Conclusion

The journey of exporting green chilies offers substantial opportunities to access global market demand. With a comprehensive understanding of the advantages, sourcing strategies, logistics, and buyer connections, exporters can navigate this venture successfully.

Citrus Freight is committed to providing dependable ocean freight services worldwide, customized to meet the specific needs of perishable exporters like you. Our extensive network of over 100 fleet locations across India underscores our dedication to supporting your green chilli export endeavors.

Furthermore, our app simplifies the process of connecting you with a wide range of reliable green chilli suppliers. It streamlines the identification of suitable suppliers and the acquisition of competitive price quotes, making it effortless to source top-quality products for your export business, including key markets like Dubai.