Spice Processing and Packaging: A Small-Scale Business Idea

Can you tell me a name of a typical Indian food that is prepared without spices? Most probably, you can’t. In fact, we can’t imagine Indian cuisine without spices. It helps to bring nice color and aroma plus add a great taste of food. Turmeric, chilly, cumin, coriander etc are the commonly consumed spices in India and these are grown in every part of the country. There are also other specialty species, that are grown in certain areas have large usages by the households. The demand of these spices in domestic and international market is growing at leaps and bounds thus creating a lucrative opening of spice business, including processing and packaging.

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Are you interested in home based spice processing and packaging business? You can start this type of spice business at your home investing a moderate amount. You may choose one or two spices as raw materials and initiate a small manufacturing unit in simple way. Once your business grows and starts making profits, you can move to an updated spice manufacturing and packaging company in a commercial space.

The Market Potential of Spice Business

Spices have a great importance in enhancing the taste and flavor of foods. In India, it is considered as an indispensable part of any food recipe. India produces around 36.68 tons of spices including more than 50 different types of spices, and it is the largest production of spices in the world. Not only that, India is the leading consumer and exporter of spices including dry red chili, turmeric, cumin, pepper and others.

Beside their daily and random application in households, spices are used by the processed food industry. There is a great use of spices in making pickles, sauce, snacks etc. In recent times, our food habit has been changing significantly along with the lifestyle. Earlier whole spices were consumed but in today’s busy schedule, people are more likely to use powdered and packaged spices as it is more convenient to use. Thus, there is a potential market of powdered spices as well as ready-to mix spices.

Essential Requirements for Starting a Small Home Based Spice Business

1. Business Registration:

To start with a small or medium scale spice production unit, you need to register your business with Registrars of Companies (ROC). As you are about to start a micro enterprise (investment in equipment not more than 10 lakh), you can fit with One Person Company registration.

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2. Licensing Certification:

  1. You need to obtain a trade license issued by the local municipal authority.
  2. If you register your company as micro, small or medium enterprise, you will obtain a Udyog Aadhar MSME certificate. Owing this certificate helps you to get easy loans at a lesser rate and enjoy various government subsidies.
  3. You need to get Food Business Operators (FBO) license.
  4. You should comply with FPO regulations.

3. Work Area

You should locate a covered shed area of around150 sq.mtrs with power and water supply.

4. Power Requirement

Electricity requirement for the plant would be 7.5 HP.

5. Water

Depending on the plant size, washing of raw spices would require around 750 liters of water for every working day.

6. Raw Materials

In order to start production, you need to buy spices in bulk. Here is list of main raw materials required.

  1. Turmeric
  2. Chilly
  3. Cumin
  4. Coriander
  5. Pepper
  6. Mustard
  7. Methi Leaves
  8. Fennel Seeds
  9. Poppy seeds
  10. Mixed powder
  11. Permitted food color and preservative
  12. Packaging Materials including PET, MET-PET, PP, PPFP
  13. Corrugated Cartons

7. Machinery

There is a requirement of simple machinery for spice grinding and packaging. These are as follows,

  1. Disintegrator
  2. Spice Grinder
  3. Sieves
  4. Heat Sealing Machine
  5. Compressor
  6. Roster
  7. Weighing Scale

Procedure of Spice Processing and Packaging

Spice processing and packaging involves several consecutive steps such as cleaning, drying, grinding/pulverizing, sieving, filling and sealing the packaged spices. At first, underground spices are thoroughly cleaned before processing. It should be washed in potable water, preferable in 2 or 3 buckets of 15 liter capacity. The next step is drying of spices for ensuring the good quality of spices. Solar drying is the best option. Then whole spices are sorted by size, shape, color and flavor. For small-scale unit, manual grinder is used to pulverize the whole spices in getting powdered form of spices. Since turmeric is solid by nature, it is passed through a dis integrator to get the uniform sized pieces and then pulverized. Now the powdered spices are sieved to ensure the uniform mesh size after grinding and thereafter weighed and packed in polythene bags. A care is needed during packaging depending on the type of species and humidity of storage.

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Spice Processing and Packaging: A Small-Scale Business Idea
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Spice Processing and Packaging: A Small-Scale Business Idea
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The demand of the spices in domestic and international market is growing rapidly thus creating a lucrative opening of spice processing and packaging business.
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Home Business Ideas Center
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