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30 Apr, 2025
By Online Legal India
Published On 29 Dec 2020
Updated On 24 Apr 2025
Category APEDA
India is one of the top wheat producers globally which makes an ideal place to start a wheat export business. There is a growing demand for wheat, especially in regions like the Middle East, Africa, and Southeast Asia to create excellent export opportunities. This creates a valuable chance for Indian exporters to grow their businesses and profits. In this article, you will learn about how to begin a profitable wheat export business with APEDA license, and understand the key steps involved in the process and more.
Engaging in wheat export from India presents numerous strategic advantages, despite current regulatory restrictions. Here are the key reasons why wheat export remains a compelling business opportunity:?
India produces a large quantity of wheat, sometimes more than needed. Exporting this surplus helps avoid oversupply in the local market, keeps prices steady, and ensures farmers are paid fairly for their crops.
Exporting wheat to international markets helps Indian exporters reduce their reliance on local demand. This approach minimizes risks and creates growth opportunities, especially in emerging economies that need consistent and trustworthy wheat suppliers.
Wheat exports play a vital role in increasing India's foreign exchange reserves. This helps improve the country's financial stability and supports investments in important sectors like infrastructure, healthcare, and education.
The growing demand for high-quality wheat encourages farmers to improve their farming methods. They adopt better seeds, such as high-yield and disease-resistant varieties. In the agricultural sector, this improves the quantity and quality of their harvests.
Exporting wheat to countries facing shortages helps meet global needs and strengthens India’s diplomatic relationships. It showcases India as a responsible, supportive nation, committed to helping other countries during times of crisis.
Growing demand for wheat exports can create many job opportunities in rural areas. From working on farms to roles in transport and packaging, it supports local incomes. This helps strengthen village economies and reduces the need to move to cities.
To support wheat exports, there is a need for better storage, transport, and port facilities. Investing in these areas improves infrastructure, which helps exporters and supports overall economic development.
To meet international quality standards, farmers are encouraged to use modern tools and techniques. This improves crop quality and productivity. It also helps to make farming more efficient and eco-friendly in the long run.
When India supplies wheat to countries dealing with shortages, it helps ensure food is available where it is needed most. This support stabilizes global markets and helps prevent food-related crises around the world.
Selling wheat in international markets can be more profitable than selling it locally. Exporters often earn higher prices, which increases their chances of making better profits.
Here is a list of documents required to start a profitable wheat Export Business:
Here is a step-by-step process to starting a profitable wheat export business:
Step 1: Establish a Legal Business Entity
You should register your enterprise as a Sole Proprietorship, Partnership Firm, Limited Liability Partnership (LLP), or Private Limited Company under the Companies Act, 2013. Getting the required licenses and signing contracts require this legal recognition.
Step 2: Obtain a Permanent Account Number (PAN)
To obtain a Permanent Account Number (PAN), you should apply to the Income Tax Department. This unique identifier is beneficial for financial transactions and tax filings.
Step 3: Open a Current Bank Account
Open a current bank account in your business’s name with a bank that maintains foreign exchange. This account is necessary for managing payments and other financial transactions related to your wheat export business.
Step 4: Acquire Importer Exporter Code (IEC)
You need to apply for an Importer Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT). This 10-digit code helps to conduct export activities legally. Online applications are accepted through the DGFT portal.
Step 5: Register with APEDA
You must register with the Agricultural and Processed Food Products Export Development Authority (APEDA). This registration is mandatory for exporting scheduled agricultural products, including wheat.
Step 6: Understand Export Policies
As an entrepreneur, you must understand India’s export rules before starting a wheat export business. The government classifies goods into free, restricted, or banned categories. Currently, wheat exports are restricted to protect local supply. However, exports are allowed to certain countries, especially neighbors, if approved by the government for food security reasons.
Step 7: Comply with Quality Standards
Ensure your wheat meets the quality standards set by international markets. This includes adhering to phytosanitary measures and obtaining necessary certifications.
Step 8: Develop a Logistics Plan
Create a solid logistics plan to move your wheat smoothly. Arrange for transport, storage, and port handling so your shipments reach international buyers on time and in good condition.
Step 9: Market Your Product
Promote your wheat to global buyers through smart marketing. Join trade fairs, exhibitions, and buyer-seller meets to showcase your product. Use digital platforms and social media to reach out and build strong international connections.
Step 10: Monitor Global Market Trends
Stay updated on global wheat demand, price changes, and political events that may affect your exports. This awareness will help you make better decisions and find new markets for your wheat.
Ensuring the quality of wheat for export involves meticulous sourcing and adherence to stringent quality assurance protocols. Here is a detailed explanation of Sourcing and Quality Assurance:
Here are the sourcing wheat for exporters:
Collaborate with farmers to adopt best agricultural practices that increase yield and quality. Initiatives like ITC's e-Choupal provide valuable information on weather, markets, and crop care that helps farmers grow better crops.
Choose wheat varieties known for their suitability in international markets. Varieties such as Sharbati, Desi, Sonalika, and HD-2967 are recognized for their quality and export potential.
Implement procurement methods that ensure traceability and quality. The Department of Food and Public Distribution's multi-agency approach aims to streamline procurement, ensuring the wheat meets the required standards.
Here are the quality assurance measures:
Obtain Agmark certification, which assures that the wheat meets predefined quality standards set by the Directorate of Marketing and Inspection. Gaining credibility in global marketplaces requires this accreditation.
Ensure the wheat complies with the quality norms of importing countries, including phytosanitary requirements and residue limits. The Indian Institute of Wheat and Barley Research is creating clear quality standards to help meet growing global demand for wheat exports.
Utilize government-established food testing laboratories to conduct necessary quality checks. The Ministry of Food Processing Industries helps set up and upgrade labs. This boosts quality checks and supports better food export standards.
Implement modern storage solutions like silos with temperature and humidity control to prevent quality degradation. Proper handling and storage minimize post-harvest losses and maintain grain quality.
Maintain transparency throughout the supply chain, from farm to export, to ensure quality at every stage. This includes documentation, traceability, and adherence to quality protocols.
By following strong sourcing and quality checks, Indian exporters can make their wheat more competitive worldwide. This helps meet international standards and builds trust with global buyers by delivering safe and high-quality wheat that matches their expectations.
To establish a successful wheat export business from India, understanding the logistics and shipping processes is crucial. Here is a detailed explanation:
Wheat is typically transported from procurement centers to ports via road or rail. Key ports for wheat exports are Kandla, Mundra, Mumbai, and Chennai. The choice of port depends on factors like proximity to the source and the destination country.
When exporting wheat, you can choose between bulk or container shipping. Bulk shipping works best for large loads, as the wheat goes straight into the ship’s hold. For smaller shipments, container shipping is safer, it protects the wheat from moisture and contamination. Your choice depends on quantity and destination needs.
Essential documents for wheat export include:
Compliance with the importing country's regulations is mandatory to avoid shipment delays or rejections.
The Indian government, through the Agricultural and Processed Food Products Export Development Authority (APEDA), provides assistance to exporters. This includes financial aid for infrastructure development, quality certification, and market development.
To effectively identify international buyers for wheat exports from India, exporters can leverage several government-backed platforms and initiatives. It includes:
By utilizing these government-supported platforms and initiatives, Indian wheat exporters can effectively identify and connect with international buyers. This also facilitates the growth of their export business.
Establishing appropriate pricing and payment terms is crucial for the success of wheat export businesses from India. Exporters must consider various factors to ensure competitiveness and compliance with international standards. Here is a detailed explanation:
According to the Agricultural and Processed Food Products Export Development Authority (APEDA), exporters should develop a comprehensive export costing sheet that encompasses all expenses from sampling to the realization of export proceeds. This includes costs related to production, packaging, transportation, insurance, and duties. The pricing should be determined based on the terms of sale, such as Free on Board (FOB), Cost and Freight (C&F), or Cost, Insurance, and Freight (CIF). The objective is to offer competitive prices that maximize profit margins while appealing to international buyers.
The Directorate General of Foreign Trade (DGFT) outlines several payment methods for international trade:
Exporters are advised to choose payment terms that reduce risks and ensure timely payments. Utilizing services from the Export Credit Guarantee Corporation of India (ECGC) can provide additional protection against payment defaults.
The Indian government provides various support schemes to help wheat exporters improve quality, stay competitive, and access global markets more easily. Here are the key initiatives:
The Agriculture Export Policy (AEP), was launched by the Ministry of Commerce and Industry. This aims to increase farm exports by improving every stage from growing crops to reaching markets. It supports processed goods, removes trade barriers, and helps farmers earn more through value addition right at the source.
APEDA, part of the Ministry of Commerce and Industry, supports agricultural exporters with funding for infrastructure, quality certification, and market expansion. They also offer market insights, trade facilitation services, and training programs. The AgriExchange portal connects buyers and sellers in real-time.
To encourage exports, the Directorate General of Foreign Trade (DGFT) implements a number of programs. For example, the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme reimburses embedded taxes and duties not covered by other programs, while the Interest Equalization Scheme offers interest subsidies on pre- and post-shipment loans. These programs greatly reduce exporters' expenses and increase India's competitiveness internationally.
Agri Export Zones (AEZs) are special regions set up to support the export of specific agricultural products. They offer dedicated infrastructure and services for farming, processing, and exporting. Both state and central governments provide targeted help, making exports easier, faster, and better in quality.
To export wheat from India, obtaining a Registration-Cum-Membership Certificate (RCMC) from the Agricultural and Processed Food Products Export Development Authority (APEDA) is essential. This certificate serves as an authorization for exporters dealing with scheduled products like wheat.?
Any individual or business entity intending to export wheat from India must:?
Possess a valid Importer-Exporter Code (IEC) issued by the Directorate General of Foreign Trade (DGFT).? Be engaged in the export of scheduled products under APEDA's purview, which includes wheat.?
To apply for the APEDA RCMC, prepare the following documents:
a. Issuance of RCMC: Upon successful verification, the RCMC will be issued, enabling you to commence wheat exports.?
b. Validity: The RCMC is valid for five years and must be renewed thereafter.?
c. Compliance: Ensure adherence to all export regulations and quality standards set by APEDA and other relevant authorities.?
Starting a wheat export business in India offers great potential for profit due to increasing global demand and strong government support. India’s agricultural strength provides a solid foundation for exporters. By following legal steps, maintaining quality, and staying informed about market trends, you can build a successful business that benefits both you and the nation’s economy. If you want to register an Import Export Code (IEC) for your business, contact Online Legal India to get assistance.
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