WHAT ARE THE PROCESS REQUIRED FOR EXPORTING GHEE FROM INDIA?

Ghee, or clarified butter, is a staple in Indian households and a valued product in many global markets due to its unique flavor, long shelf life, and numerous health benefits. The demand for Indian ghee has increased significantly across countries like the USA, UAE, Australia, Canada, and Europe, making it a promising product for export. However, exporting ghee from India involves a well-defined process, including regulatory approvals, documentation, compliance with international standards, and efficient logistics.

In this comprehensive guide, we’ll break down the entire process of exporting ghee from India in detail. Whether you are a small dairy producer, a startup, or an established dairy brand looking to enter the global market, this step-by-step overview will serve as your roadmap.

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Table of Contents

1. Understanding the Market Potential

2. Business Setup and Legal Requirements

3. Product Standards and Quality Compliance

4. Licenses and Registrations

5. Packaging and Labeling Requirements

6. Finding International Buyers

7. Logistics and Shipping Procedures

8. Documentation Required for Export

9. Customs Clearance in India

10. Tips for Successful Exporting

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1. Understanding the Market Potential

Before starting your export journey, conducting market research is critical:

• Identify target countries: Research which countries have high demand for ghee and assess their import regulations.

• Study competitors: Understand how other Indian brands like Amul, Patanjali, or local ghee suppliers are performing internationally.

• Check pricing and demand trends: Use platforms like Tridge, Statista, or ITC Trade Map to gather import-export data.

You should also consider consumer preferences (organic, A2 ghee, cow vs. buffalo ghee), price sensitivity, and packaging formats preferred in those markets.

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2. Business Setup and Legal Requirements

To legally export ghee from India, you must have a registered business entity. The common options include:

• Proprietorship

• Partnership

• Private Limited Company

• LLP (Limited Liability Partnership)

Make sure to:

• Obtain a GST registration.

• Open a current bank account in your company’s name.

• Choose a reliable CA or legal consultant for compliance support.

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3. Product Standards and Quality Compliance

Ghee is categorized under food exports, and it must comply with both Indian standards and destination country standards.

In India:

• FSSAI (Food Safety and Standards Authority of India) sets quality benchmarks for ghee production.

• BIS (Bureau of Indian Standards) may apply if specific certifications are needed.

Globally:

• Exporting to the USA requires compliance with FDA standards.

• Europe will require EU food safety compliance.

• UAE and Gulf countries may need Halal certification.

Ensure your ghee product passes lab testing for parameters like:

• Fat content

• Moisture level

• Peroxide value

• Free fatty acid levels

• Microbiological safety

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4. Licenses and Registrations

Here’s a checklist of all essential registrations required to export ghee from India:

a. FSSAI License

Mandatory for manufacturing and processing food items in India. Get a central license if operating in multiple states or exporting.

b. Import Export Code (IEC)

Issued by DGFT (Directorate General of Foreign Trade), this is mandatory for any export/import business.

c. APEDA Registration

As ghee is classified under agricultural and processed food, registration with APEDA (Agricultural & Processed Food Products Export Development Authority) is required.

d. Halal Certification

Required if exporting to Islamic countries like UAE, Saudi Arabia, Malaysia, etc.

e. BIS Certification (optional but useful)

If you want to enhance credibility or enter regulated markets.

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5. Packaging and Labeling Requirements

Packaging plays a vital role in the success of ghee exports. It should preserve quality, comply with hygiene standards, and appeal to international consumers.

Key Packaging Guidelines:

• Use food-grade containers (tin, plastic jars, tetra packs).

• Ensure airtight sealing to avoid contamination and oxidation.

• Include batch code, MRP, net weight, manufacturing date, and expiry date.

Labeling Must Include:

• FSSAI license number

• Ingredients list

• Nutritional information

• Country of origin (Product of India)

• Storage instructions

• Certifications (e.g., Halal, Organic)

Custom labels may be required for different markets – check local import laws.

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6. Finding International Buyers

You can find buyers for your ghee products through the following channels:

• B2B Platforms: Alibaba, Indiamart, TradeIndia, ExportersIndia

• Trade Fairs & Exhibitions: Gulfood Dubai, SIAL Paris, Anuga Germany

• APEDA Buyer-Seller Meets

• LinkedIn and Email Outreach

• Indian Embassies and Trade Offices Abroad

• Online Advertising and SEO

Make sure to develop a professional product catalog, samples, and a compelling value proposition for international buyers.

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7. Logistics and Shipping Procedures

Once you secure an order, you need to decide on the logistics. Ghee can be exported by air freight or sea freight, depending on volume and urgency.

Steps include:

• Finalizing Incoterms (e.g., FOB, CIF, EXW) with your buyer

• Hiring a freight forwarder or CHA (Custom House Agent) to manage shipping

• Preparing pallets and cartons for export

• Booking container space for sea shipments or air cargo space

Make sure the packaging is robust enough to withstand long transit times, especially in warm climates.

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8. Documentation Required for Export

Here is a comprehensive list of documents needed to export ghee from India:

1. Commercial Invoice

2. Packing List

3. Bill of Lading or Airway Bill

4. Certificate of Origin (COO) – issued by the Chamber of Commerce

5. FSSAI Compliance Certificate

6. Health Certificate – especially required for EU and Gulf countries

7. Halal Certificate – if applicable

8. Insurance Certificate (if goods are insured)

9. Export Declaration Form (EDF)

10. APEDA Registration Certificate

Your CHA or freight forwarder will help in managing these efficiently.

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9. Customs Clearance in India

Before the shipment leaves India, it must be cleared by customs. Steps include:

1. Filing the Shipping Bill through the ICEGATE portal

2. Inspection by customs officials (in some cases)

3. Payment of export duties or availing duty drawback if eligible

4. Release of Bill of Lading/Airway Bill

Once cleared, the goods are handed over to the shipping line or air cargo terminal for onward journey.

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10. Tips for Successful Exporting

To succeed in the competitive ghee export market, consider these tips:

a. Maintain High Product Quality

Buyers will test your product quality. Failures can result in product recalls and blacklisting.

b. Offer Competitive Pricing

Analyze international pricing and factor in all logistics costs to remain competitive.

c. Build Relationships

Establish trust and long-term contracts with your overseas buyers. Offer flexible payment terms.

d. Invest in Branding

Create a strong brand identity for your ghee, especially if targeting direct-to-consumer markets.

e. Ensure Consistent Supply

Have a reliable procurement, production, and packaging process to meet international demand on time.

f. Stay Updated on Export Incentives

The Indian government, through APEDA and DGFT, offers several schemes like MEIS/RODTEP for exporters. These can increase your margins significantly.

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Conclusion

Exporting ghee from India is a rewarding venture that holds tremendous global potential. However, it’s not a plug-and-play business. It requires in-depth knowledge of food export regulations, certifications, logistics management, and buyer acquisition strategies.

By following the correct processes—starting from obtaining licenses, ensuring product compliance, and arranging smooth logistics—you can build a sustainable and profitable export business. As demand for traditional Indian food products continues to grow globally, high-quality Indian ghee is poised to find a larger place on international shelves.

So if you’re a dairy producer or entrepreneur looking to expand your reach, now is the perfect time to explore ghee exports from India. With the right preparation and partners, your journey into the global dairy market can be a highly successful one.