A farmer in Chhattisgarh used to sell only tamarind from his farm but today he is exporting the seed powder to Dubai, Germany and Singapore and his profit has increased four times than before. This small tamarind seed can all make you a millionaire.
In this blog you will learn how you can earn a name for yourself not only in your city but in the whole world by starting the business of tamarind and especially tamarind seed powder in India.
And if you don’t have much money, don’t worry. I will guide you to its solution also. This business is perfect for those who want to build a global business from local raw material with low investment even if you are a student, farmer or owner of a small unit.
Market Overview
India is the largest producer and exporter of tamarind. Our yearly production is around 1.6 lakh metric tonnes. Big countries like America, Australia and UAE buy tamarind from us. There is tremendous demand for it in the domestic market. Especially in South India. So even if you sell only tamarind pulp or paste, there is a lot of scope.
The Real Jackpot: Tamarind Seed Powder
This is the real jackpot. The Global Tamarind Seed Powder Market was valued at $124 million in 2024. Meaning that it is going to reach 1000 crores and by 2023 it is going to reach $10 million. Just imagine how fast it is growing. Its growth is more than 7.3%.
- It is a natural thickener in cooking. Like corn flour, it is much healthier.
- It is used in ice cream, sausages, bakery products, dairy items etc.
- Its demand is also increasing in gluten free and vegan products.
- It is used in place of starch in the textile industry to make clothes. Cheap and high quality.
- It acts as a binding agent in pharmaceutical and neurosteroid medicines.
- It is also used in many natural health supplements. From boosting immunity to controlling blood sugar.
This means that your medicine contains tamarind seed powder. It is also being used in cosmetics and beauty products. Animal feed is also an important ingredient in animal diet. Tamarind seed powder is not just a powder but the future of many industries.
Government Schemes and Subsidies
If you are wondering where the money will come from to start such a big business, then don’t worry.
Our government is ready to help you.
- There are some special schemes for you. Like PMFME Scheme, Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme. Under this scheme, you can get up to 35% capital subsidy for small food processing businesses. Up to Rs 10 lakh. Self-help groups also get seed capital. Branding and marketing support is also available.
- If tamarind is included in One District One Product in your district then you will get more benefits. For example, Jagdalpur in Chhattisgarh is Asia’s largest tamarind market. So there it can come under ODOP.
- The next scheme is PLISFPI. Production Linked Incentive Scheme for Food Processing Industry. If you want to go to a bigger level then this scheme is for you. This is a Rs 10,900 crore scheme that promotes the production of processed fruits and vegetables. You get incentives on sales in this.
- PM KSY Prime Minister Kisan Sampada Yojana. Its aim is to create modern infrastructure for food processing. Like cold chain and value addition centres. Not only the Central Government but the states also support it. There are special incentives for food processing units in states like Karnataka, Andhra Pradesh, Tamil Nadu. Such as capital subsidy, interest subsidy, tax benefits and exemption in land conversion charges. So definitely check the industrial policy of your state.
- Well, our government helps a lot not only in this business but also in other businesses. If you know the right scheme, its benefits and the right way to apply. Otherwise, people do not get anything even after going from one government office to another.
Step-by-Step Requirements to Start
So now let’s come to how to start a business? Here are the step by step requirements for you.
Business registration.
You can register your company as a Sole Proprietorship, Partnership, LLP or Private Limited Company. A private limited company has lower liabilities and is easier to obtain funding. GST Registration: If your turnover is more than Rs 40 lakh for goods and Rs 20 lakh for services or you are doing interest business then it is very important for you to get GSTIN.
Licenses and certifications.
It is very important to obtain a FSSAI license. You will have to obtain a basic state or central license depending on your turnover. FSSAI ensures the quality and safety of your product. It is very important to follow the hygiene standards of Schedule Four. Like cleanliness, workers’ hygiene, plan design, waste management. Then comes the IEC Import Export Code. If you want to export, it is mandatory to get this code from DGFT. Then comes environmental clearance. Food processing units have to take consent from the Pollution Control Board (PCB). Consent to establish and consent to operate have to be taken. Small scale units typically fall under Category B which require state level clearance. Local municipal licenses are also required. It is also very important to obtain a trade license and factory license from your Municipal Corporation.
Production unit setup.
Then for raw material sourcing, tamarind is found in abundance in South India and Central India. You can buy raw tamarind seeds directly from farmers or from markets. Quality control has to be taken care of. Then the first step in processing is cleaning. The seeds are first cleaned of soil and leaves. The second step is conditioning. They are then formulated for moisture control. The third step is roasting. The seeds are lightly roasted to remove their peel. Grinding should be easy. The fourth step is grinding. After roasting, the seeds are ground into powder in a pulverizer or hammer mill. Then comes the last step, grading. The powder is sieved through meshes of different mesh sizes to form different grades.
Machinery.
You will need a D stoner, safe separator, roaster, hammer mill and grater machine. For a small unit, the initial investment in machinery will be Rs 5 to 10 lakh. But if you take advantage of the right schemes, you will get both grants and subsidies. I will also put the link to the machine in the description. Go and check it. For extra income, you can separate the peel and seeds from tamarind and take out the pulp and make a paste of that pulp and pack it and then sell it too. For this you will need pulp extractors, destoners, evaporators and pasteurizers. And if you want, you can also make processed items from this pulp like chutney etc.
Quality Standards and Certifications.
HSCCP & ISO 22000 are food safety management systems that ensure the quality and safety of your products meets international standards. This is very important for exports. Halal certification is also required for exports to Middle East and South East Asian countries. Organic Certification If you are using organic tamarind then NPOP certification is required in India and certifications like USDA Organic EU Organic are required for international markets. Fund certification is also in demand in some markets.
Export Opportunities
India is the top exporter of Tamarind Products. So for you the whole world is a market. Major Export Destination Countries like the USA, Australia, UAE, China, UK, Vietnam, Malaysia, Turkey, Iraq, Iran are our major buyers. There is a high demand for natural plant-based ingredients.
Methods of exporting
- First of all, import export code has to be obtained from DGFT.
- Then the product and market section will have to be done.
- You will have to prepare which product pulp, paste, seed powder you want to export to which country. Every country has its own rules and preferences.
- You will have to understand the food safety regulations of the country to which you are exporting. For example, for the USA, USFDA registration is mandatory and you will also have to follow the rules of Food Safety Modernization Act FSMA.
- Then to find buyers, you can find buyers here by connecting with international trade fairs, B2B platforms like Aliba, Trade India, Export Promotion Councils, Appeed.
- Then it is very important to mention product information like ingredients, nutritional facts, origin and certifications in the labelling by packaging as per international standards.
- After this comes the documentation part which includes commercial invoice, packing list, bill of lading if you are sending by ship, airway bill if you are sending by flight, certification of origin, health certificate, from APEED and if required, phytosanitary certificate.
- You can proceed further by talking to a good freight forwarder who is well versed in logistics and customs and can help you with shipping your goods, customs clearance and temperature control.
Challenges and Solutions
Like every business, it also has some challenges. There may be some issues in raw material sourcing. As for the season issue, tamarind is a seasonal crop. Quality Control It may be difficult to get quality seeds from every farmer. There may be logistics problems in transportation of seeds from remote areas. And because of the presence of middlemen, the farmer gets less price and you get more. But the solution to this is to tie up directly with the farmer or joining FPOs Farmer Producer Organization can be a good solution.
Domestic Distribution
There are two ways you can sell your processed products in India for domestic distribution. Start offline from your local grocery store, supermarket, hyper market. Talk to the wholesaler. You can deliver your product across India online through e-commerce platforms like Amazon, Flipkart or by creating your own website.
Conclusion
Tamarind and tamarind seed powder business is not just an opportunity but a golden chance. Abundance of raw material in India, government support and increasing demand in the global market.
All this makes it a perfect recipe for you. Remember, every big business starts with a small, well-thought-out step. If you proceed with proper research, planning and hard work, you too can be successful in this exciting industry and If you have any questions in mind then you can ask in the comment section of this blog below.