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What is the best way to start a coffee export business from India?

The coffee export business is controlled by the Ministry of Commerce, Government of India, and its purpose is to encourage coffee production in India as well as the export of Indian coffee to other countries. As an export marketing body, the Coffee Board of India promotes the export of coffee from india while also aiding the growth of local coffee markets. Located in Karnataka, the Board is dedicated to promoting the expansion of India's growing coffee industry via the organization of international exhibits, trade fairs, and other trade promotional activities.


Initially Exporting


Export is a broad term that requires extensive pre-planning on the part of any prospective exporter. The following actions may be taken to begin an export business:


  1. Creating a Business


First, a sole proprietorship or partnership company or corporation must be formed according to the proper procedures and given a catchy name and logo to begin the export business.


  1. Open a bank account


Having a current account with a bank, that deals in foreign currency.


  1. Applying for Permanent Account Number 


Every exporter and importer must acquire a PAN from the Internal Revenue Service. (Click here to apply for a PAN Card)


  1. Achieving IEC Status


By India's Foreign Trade Policy, the IEC must export and import from India. The FTP, 2015-20 sets out the method for getting an IEC, which is PAN-based, in paragraph 2.05 of the document.


Following ANF 2A, an application for the Indian Entrepreneurship Certificate (IEC) may be submitted online on the DGFT website by offering all required papers and an Rs. 500/- application fee


  1. Documentation of enrollment and membership (RCMC)


Exporters must get RCMC from the relevant Export Promotion Councils/ FIEO/Commodity Boards/ Authorities to receive a license to import/export or any other advantage or concession under FTP 2015-20.


  1. Choosing the right product


Except for a few products on the prohibited/restricted list, all things are free to be exported.

After analysing the export patterns of various items from India, it is possible to pick the product(s) to be exported.


  1. Markets to Be Considered


Before settling on a new site for your company, you should do extensive research about the area. As part of the FTP, exporters may also study markets based on export incentives granted to a particular country. Colleagues, friends, and family may all be excellent sources of information, as export promotion organizations and Indian embassies worldwide.


  1. Locating buyers


Attending trade fairs and other events that bring buyers and sellers together is a great way to discover new customers. EPCs, Indian Missions abroad, and foreign chambers of commerce might be helpful. Making a bilingual website with a product catalog, pricing, and payment conditions would also be beneficial.


  1. Taking a small number of samples


Export of coffee from India might be helped by providing tailored samples that meet the needs of foreign clients. Bonafide commercial and technical samples of freely-exportable commodities may be exported without restriction under the FTP 2015-2020.


  1. Pricing/Costing


Product price is vital in gaining buyers’ attention and encouraging sales due to worldwide competition. Price should be calculated considering all costs incurred from sampling through the realization of export earnings based on purchase terms, such as FOB, CIF, C&F, etc. 


The goal of export costing should be to sell as much as possible at a competitive price while maintaining a high-profit margin for the company. Every export product should have an export costing sheet.


  1. Dealing with Customers


Demand for a fair allowance or decrease in price may be considered after considering the buyer's interest in the product, prospects, and company continuity.

Conclusion


Export Permit and Certificate of Origin are issued to the registered exporter of coffee by the Coffee Board. The registered exporter may apply for an Export Permit (EPA) and ICO Certificate of Origin (CO) online using the Coffee Board e-permit system.


Also Read : How to join the Apparel Export Promotion Council (AEPC)?

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