Export of spices

Group xxx

Promotion of brand

1.

Product and Packaging Development and Bar Coding Brand promotion

2.

Product and Packaging Development and Bar Coding

Brand uniqueness Brand identification and Image builder Packaging with the foreign country needs. Details and proper bar coding.

Brand Promotion

Media promotion Promotional trips abroad participation in international fairs Market penetration strategy development

Spice board
Spices Board will periodically review the progress of implementation of the scheme, expenditure, export growth etc and continuation of the assistance will depend largely based on: i) Qualitative analysis of the brand acceptance in the market ii) Stability and reach of the brand in the market iii) Growth and competence of the brand iv) Export growth in real terms.

Infrastructure development

(1) Adoption of Hi-Tech in Spice Processing (2) Technology and process upgradation (3) Setting-up/up-gradation of inhouse quality control laboratory (4) Quality certification

Adoption of Hi-Tech in Spice Processing

to encourage higher end value addition in spices processing modern and scientific facilities for ensuring food safety and quality Increase value realization in International market

Technology and process up-gradation

To produce better products of high quality standards To match the requirements of foreign buyers Improvise packing system

Setting-up/up-gradation

in-house quality control laboratory to promote quality facilities to undertake analysis of various parameters on quality of the products including detection of pesticide residues, aflatoxin, physical, chemical and microbial contaminants laboratory furnitures and other accessories including electrical installations

Following activities will be eligible for financial assistance by Spice board under this component:

a) Accreditation/Certification of processing units for ISO, HACCP, SQF 2000, GMP traceability, FDA Registration etc. b) Validation and standardization of check samples sent abroad. c) Imparting training for laboratory personnel. Under this component, cost of accreditation/certification of processing units (including renewal), cost of analytical charges for validation/standardization in laboratories abroad and charges/expenses for upgrading technical knowledge of laboratory personnel of the exporters in reputed international laboratories preferably approved by USFDA, EU etc.

Quality certification

Validation of check samples. Training of laboratory personnel.

Sampling and stuffing

Intimate Spice Board Create list / details of sample goods No charges levied on sampling

Scale of assistance by Spice Board

All exporters having valid Certificate of Registration as Exporter of Spices from the Spices Board and also having an investment of a minimum of Rs.50.00 Lakhs (except for groups of certified organic growers having a minimum of 50 members) are eligible for availing the assistance.

Scale of assistance

Grant-in-aid is provided to the tune of 33% of the cost of various activities subject to a maximum of Rs.100.00 Lakhs for general areas and 50% of the cost or Rs.200.00 Lakhs

Basic types of Quotation

F.O.B: it means free on board the delivery of the cargo is given till the same is loaded on to the vessel. All future expenses like freight, insurance will be to the account of the buyer. C & F: It means cost & freight. The price includes even the freight charges till the destination. The buyer has to bear only the insurance and other delivery charges etc at the port of destination. C I F : it means cost, insurance and freight. The price includes all expenses till the port of destination.

Major Methods of Payment

Cash-in-Advance Letters of Credit Documentary Collections Open Account

Cash in advance

With this payment method, the exporter can avoid credit risk, since payment is received prior to the transfer of ownership of the goods. There are three types of cash- in advance- payment method: wire transfer, credit card, and payment by cheque.

Letter of Credit

Letters of credit (LCs) are among the most secure instruments available to international traders. An LC is a commitment by a bank on behalf of the buyer that payment will be made to the exporter provided that the terms and conditions have been met, as verified through the presentation of all required documents.

Documentary collection

A documentary collection is a transaction whereby the exporter entrusts the collection of a payment to the remitting bank (exporters bank), which sends documents to a collecting bank (importers bank), along with instructions for payment. Funds are received from the importer and remitted to the exporter through the banks involved in the collection in exchange for those documents.

Open Account

An open account transaction means that the goods are shipped and delivered before payment is due, usually in 30 to 90 days. Obviously, this is the most advantageous option to the importer in cash flow and cost terms, but it is consequently the highest risk option for an exporter. Due to the intense competition for export markets, foreign buyers often press exporters for open account terms since the extension of credit by the seller to the buyer is more common abroad.

Thank you!