Organic Food Business is one of the most fast-evolving businesses in India. It is expected that it will grow 25% in the next three years. Nowadays people are very health conscious. Everybody wants to live a healthy life. Therefore people’s interest is shifting towards organic food. It is not only good for humans but also beneficial for the Environment and animals. Organic Food Business is easy to start. It only takes certain permission and License from the authorities. There are certain formalities that need to be done to start the above mention Business. This write up will give you detailed information about all the formalities regarding Organic Food Business. 

What are Organic Food and Organic Food Business?

Organic Food

Organic Food items are those produced without using any chemical fertilizers or pesticides. They have naturally grown food items. They do not have any risk for human health. They are cultivated with natural pesticides and fertilizers which are made up of rotten vegetables, cow dung, etc. Organic Food items are relatively fresher because preservatives are not used to save them.

Organic Food Business

As per Section- 22 of FSS, Act 2006, food products that are grown by furnishing the needs of organic production are called Organic Food. The businesses involves in the buying, selling or labeling of organic food items are called Organic Food Business. 

Is Organic Food Business Profitable?

There are various reasons on the basis of which it can be said that Organic Food Business is definitely a profitable business. Following is the list of those reasons- 

∙       Consumer demand for Organic Food in India is increasing. 

∙       Businessmen are investing in this sector which leads to the Export of Organic food.

∙       Government through various policies supporting the Organic Food Business. 

∙       As people are health conscious nowadays, therefore the difference in the prices of organic food and inorganic food is insignificant. 

∙       High investment is done in this sector of food. 

∙       Digital awareness is created about organic food. 

∙       E-commerce business is selling organic food and their demand is very high. 

Step by step guidelines to start Organic Food Business

Good Store Location

Location is very important for any kind of business. Therefore before starting the business of Organic Food one must choose a good location. Choose a place where the communication with customers is high and competition is less.

Store’s Documentation

Documentation of store is very needful. Because you cannot change the location again and again. Once your business is set up customers know your place, meanwhile if you shift from another place it will decrease your reach. Therefore always go with the lease agreement instead of the rent agreement. Because a lease is for a longer period and it will be helpful for your business in the long run. 

Fulfill all the legalities

∙       Apply for the incorporation of the firm. Incorporation can be done as per your wish. You can incorporate as LLP, Sole Proprietorship partnership firm, etc. 

∙       Every business related to any food product needs FSSAI License.

∙       Indian Organic Certificate for all the products.  

∙       Organic Trade Association certification must be avail for the store. 

∙       If the total strength of your employees is more than 20 then you should enroll your employees with EPF. 

∙       You are starting a business hence you should apply for the GST Registration. 

∙       PAN from the IT department is also needed. In the name of your business open a current bank account. 

Product Portfolio 

This step is very important for your business. Always select the product carefully. First, you need to do thorough research about the organic market and organic products which are in high demand. Select the product as per the demand. Because higher the demand higher the profit. You need to check the product’s demand, its market distribution, etc. 

Underpin the price

Price plays a very significant role while sales. It requires great research about the market price of the competitors. You choose the low price, profit will be compromised. If you choose the high price, you lose the customers. Hence you need to underpin a price that will be best suitable for your business success. 

Advertisement-

We are living in a digital era. If your product is in the eyes of the customers, only then your business will be successful. Therefore choose the right platform to advertise. Right advertisement can make your business successful.

Initial investment

Organic Food Business at least requires 10-12 Lakhs initially. You need to buy the material for your business, marketing, advertisement, salary, rent, etc. All this requires the investment which is mentioned above. 

Labeling

As per FSS Packaging and Labeling Regulation Act, 2011^[1] there are the following things that need to be on the product necessarily- 

∙       Name of the food product.

∙       Nutritional value and ingredients of the food product. 

∙       Food that is addictive, veg or non-veg.

∙       Net quantity of the product packed. 

∙       Entire details of the manufacturer. 

∙       Manufacturing date. 

∙       Date of usage.

∙       Expiry date of the product.

∙       Batch number, Code number, and Lot number. 

∙       All the necessary instructions must be on the packet. 

Document required for Organic Food Business

1.     Voter ID Card.

2.     Aadhaar Card. 

3.     PAN Card.

4.     Ration Card.

5.     Driving License.

6.     M.O.A and A.O.A

7.     Business Agreement. 

8.     NOC

9.     Bank Statement.

10.  India Organic Certificate.

Conclusion

Organic Food Business is one of the top business ideas which you can start today. Its growth rate is very high if we see the predictions and studies. This business is also supported by the government. It is not very difficult to start Organic Food Business in India. There are certain formalities that need to be done. Bizadvisors has a team of experts, who can make your work easy. 

Read our article:Guide On How To Start Nutrition Food Business In India