Which License is Required to Start an Organic Food Business?

Business

Which License is Required to Start an Organic Food Business?

Registrationwala

The demand for organic food is increasing daily due to growing consumer awareness of health and environmental issues. Consequently, the organic food business has emerged as one of the best business ideas today. 

The Indian organic food market is projected to grow at a Compound Annual Growth Rate (CAGR) of 22.20%, during the forecast period 2024-2032. This growth makes it an enticing opportunity for entrepreneurs looking to enter the organic food industry. 

In this blog post, we shall discuss all the necessary licenses to start an organic food business in India. So, if you’re planning to establish an organic-food business in the near future, this blog post will be helpful for you!

What is Organic Farming Meaning?

Organic farming business, also known as organic agriculture or ecological farming or biological farming, is a method of agriculture that deliberately avoids the use of chemical fertilizers and pesticides for production. 

Organic-food products that are produced via organic agriculture practices without synthetic pesticides, fertilizers or genetically modified organisms are often considered better for both human health as well as the environment.

Types of Organic Food Businesses in India

Here are some popular types of organic-food businesses in India:

  1. Organic Poultry Farming

  2. Organic Dairy Farming

  3. Organic Seed Production

  4. Organic Mushroom Farming

  5. Organic Aquaculture Farming

  6. Organic Beekeeping 

  7. Organic Coffee Farming

  8. Organic Tea Farming

  9. Organic Wheat Farming

  10. Organic Fruit Farming

Top 10 Organic Food Brands in India

Here is the list of top 10 organic food brands in India:

  1. Organic India

  2. Organic Tattva

  3. 24 Mantra Organic

  4. Phalada Pure & Sure

  5. Conscious Food

  6. Prakritik

  7. Two Brothers Organic Farms

  8. Nourish Organics

  9. Natureland Organics

  10. Hari Bol

Licenses and Certificates Required to Start Organic Food Business

The following licenses and certificates are required to start an organic business in India:

1. FSSAI License

To carry on any food business, including organic-food business, in India, it is essential to obtain FSSAI license. This license is issued by the Food Safety and Standards Authority of India under the Food Safety and Standards (FSS) Act 2006. There are three types of FSSAI certificates. The exact license you require for your organic business depends on the annual turnover.

If your business annual turnover is less than Rs. 12 lakhs, then you need to secure FSSAI basic registration. If it is between Rs. 12 lakhs to 20 crores range, you need FSSAI state license. However, if the annual turnover exceeds 20 crores, then you must apply for the FSSAI central license. 

The FSSAI license remains valid for a period of 1-5 years, as chosen by the business. Before this license expires, a renewal application must be submitted at least 30 days before the expiry date.

2. NPOP Certification

NPOP Certification is essential for organic products from India. This certification is issued under the National Programme for Organic Productions (NPOP). Securing this certificate allows a business to legally label and market its products as organic in India. 

The NPOP certification is granted by accredited Certification Bodies under the NPOP scheme, which is managed by the Agricultural and Processed Food Products Export Development Authority (APEDA). 

A business with an NPOP certificate ensures that its products meet the prescribed standards for organic production, including biodiversity, soil fertility, environmental protection and absence of synthetic inputs like chemical fertilizers and pesticides.

3. APEDA License

To export organic-food products from India to overseas markets, it is mandatory to get an APEDA license from the Agricultural and Processed Food Products Export Development Authority (APEDA). Without this license, your business cannot export food products. 

To apply for the APEDA license, you must visit the official Directorate General of Foreign Trade (DGFT) portal and file an application there. Once this license is issued, it remains valid for a period of 5 years from the date of issuance. You must apply for license renewal before it expires to ensure smooth and uninterrupted organic-food export business operations.

4. IEC Code

IEC stands for Import Export Code. It is a 12-digit code issued by the Directorate General of Foreign Trade to businesses engaged in import or export of goods. Without IEC, a business cannot conduct import or export activities. Therefore, securing IEC code is essential for an organic farming business if it is engaged in exporting organic-food products from India. 

Once issued, the Import Export Code remains valid for an indefinite period of time. However, it is essential for IEC holders to update their details every year to maintain the IEC’s active status.

FSSAI Registration

Conclusion

To start an organic-food business in India, it is essential to obtain necessary licenses and certificates including FSSAI license, NPOP certificate, APEDA license and IEC Code. If you need assistance in establishing an organic farming business or in exporting organic-food products from India, connect with the Registrationwala expert team. We will help you fulfill all the legal and regulatory requirements.

Frequently Asked Questions (FAQs)

Q1. Which certificate is required to label/market food products as ‘organic’ in India?

A. The NPOP (National Programme for Organic Production) certification is required to label/market food products as ‘organic’ in India.

Q2. Which authority’s approval is required to export organic farming products from India?

A. The approval of Agricultural & Processed Food Products Export Development Authority (APEDA) is mandatory for exporting organic farming products from India. 

Q3. What are some popular organic brands in India?

A. Popular organic brands in India include Organic India, Organic Tattva, Natureland Organics, 24 Mantra Organic and Two Brothers Organic Farms.

Q4. How can I apply for NPOP certification?

A. To apply for an NPOP certificate, you need to file an application with an accredited certification body, submit necessary documents and undergo necessary inspections.

Q5. Can I start an organic-food business as a sole proprietor?

A. Yes, it is possible to start an organic-food business as a sole proprietor in India. 

Q6. Which state in India is a fully-organic state?

A. Sikkim is the first state in India to be fully organic since 2016. This means the state has implemented organic farming practices across all its agricultural land. 

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