How to Start an Organic Food Business in India?

Organic foods and supplements are grown naturally using manure, sunlight and without the synthetic application of fertilizers and chemicals. In recent times, organic farming has gained momentum and people have started to prefer organic products. Farmers are also slowly adapting to the change and are using chemical-free stuff for the growing the produce. The cost of production is also comparatively less. India at present is becoming a hub for organic products.

For starting a business, the person should have full knowledge and information about these organic foods and their emerging trends. The organic food business is governed by Section 22 of Food Safety and Standards Authority of India (FSSAI) and should be registered, certified, licensed and labelled. 

Introduction to Organic Food Business

Organic Food Business is a type of business dealing with selling, purchasing, labeling, etc. of organic food products. Organic food, as defined by Section 22 of the Food Safety and Standardization Act, 2006, means the food products which are produced in accordance with the specified standards for organic production.

Requisites for Starting an Organic Food Business in India

Starting an organic food business in India is an excellent opportunity as India is evolving as a hub for organic food products. People have started preferring organic products due to the fact that no synthetic chemicals and fertilizers are used in developing the product. Talking about the cost of production, it’s relatively low in comparison to other forms.

Before starting an organic food business in India, a person must make sufficient gather information about the organic foods along with the things in trending concerning the same. Section 22 of FSSAI is the governing body in the case of organic food business in India. All the food business owners engrossed in organic food business must go for FSSAI Registration, licenses, certifications, and labeling.

What does Section 22 of the FSS Act Specify?

Section 22 of the Food Safety and Standardization Act, 2006 gives regulations for “Genetically modified foods, organic foods, functional foods, proprietary foods, etc.” It specifies that no person or entity is allowed to sell, distribute, manufacture, import any novel foods, genetically modified foods, organic foods, functional foods, irradiated foods, foods for particular dietary uses, nutraceuticals, health supplements, or any other such food articles as notified by the Central Government.

Reasons for the Growth of Organic Food Business

The Reasons for the Growth of Organic Food Business in India are as follows:

• Digital Awareness;
• E-commerce Facilitation;
• Insignificant Price Difference;
• Government Support to the Organic Food Industry; and
• Increase in the Level of Exports;

Documents Required to Start an Organic Food Business in India

The documents required to start an Organic Food Business in India are as follows:

• Business Certificate;
• ID Proofs, such as PAN Card, Voter ID, Aadhar Card, or Driving License;
• MOA (Memorandum of Association);
• AOA (Articles of Association);
• NOC (No Objection Certificate);
• Permissions and Approval from State Health Department; and
• India Organic Certificate;

Labelling Requirements for Organic Food Business

An Organic Food Business in India is required mandatorily to display the “India Organic Certificate” on the outer packaging of the items and products. Further, the Food Safety and Standards (Packaging and Labelling) Regulations 2011 has laid down the contents which need to be there on the labels of all the organic food products manufactured in India:

The labelling requirements to start an Organic Food Business in India are as follows:

• Name of the Product;
• Nutritional Value of the Product;
• Food Additives used in the Food Products;
• Preservatives used in the Food Products;
• Vegetarian or Non Vegetarian Labelling on the Food Products;
• Net Quantity of the Food Product;
• Code/ Lot/ Batch Number of the Food Products;
• Manufacturing Date of the Food Product;
• Expiry Date of the Food Product; and
• Instructions to Consume the Food Product;

Investment Required to Start an Organic Food Business in India

On an average around Rs 10 lakhs to Rs 11 lakhs are needed as Investment to start an Organic Food Business in India. Further, the amount of investment includes the factors as follows:

•  Deposit for Rented Premises;
• Cost for Paying Salaries;
• Operating Cost;
• Inventory for Organic Food Products; and
• Furnishing and Interior Decoration;

Growth in the Organic Food Industry in India

The organic food sector is growing at an astounding rate in the Indian market. As people are getting educated and hence, more health-conscious, it is expected for the organic food industry to grow by 25% in the coming three years. The advancement in technology and various other such factors ensures the achievement of this growth rate. Moreover, the government is also taking various initiatives to help improve this sector and generate awareness.

Top 8 organic startups in India

The top eight organic startups in India are as follows;

• Organic Shop: Founded by Manuj Terapanthi
• Naturally Yours: Founded by Priya Prakash and Vinod Kumar in 2010
• NutriBucket: provides 100% organic products available on their online food store
• I Say Organic: Ideal platform for farmers as it also takes care of the farmer’s well being. Founded by Ashmeet Kapoor
• Organic Life: established by Mallesh Tigali, and it caters more than 1500 organic products in 100 plus categories
• Farm2Kitchen: Founded by Seema Dholi in February 2011. It delivers organic food products to consumer’s doorsteps
• JoyByNature: Founded by Rahul Kumar and Sailesh Mehta. This platform sells around 50 brand products sold by over 300 vendors
• Living Greens Organics: Founded by Prateek Tiwari. This platform sells products grown on rooftops and promotes  rooftop farming

To Conclude

Starting an organic food business in India is a keenly-priced affair. However, it requires business owners to obtain FSSAI License, registration, certifications, India organic certificate, etc. for easy running of the organic food business. Furthermore, the government is taking the required measures for the Sureshot victory of this sector. Organic food products businesses can bank upon our Legal Window team for expert help.