·         India has always been a land of olfactory indulgence, where aromatherapy, incense, and altar have existed since ancient times, where essential oil perfume was a part of the ancient royal lore. The earliest scents used were the healing scents introduced through Ayurveda, which recommended the use of aromatic herbs and fragrant plants for mental well-being, beauty, treatment of ailments, hygiene, and age control which are well known even today.

·         This traditional fragrance industry in India has seen vast changes in recent years with the introduction of technology and wider usage. The Indian fragrance industry is one of the largest in terms of production and consumption and at present, the fragrance market is set to grow and offer innumerable opportunities for new entrants to grow this market.

·         India is the leading country in the world with a rich diversity in flora and fauna with its 15 Geo- climatic zone. India can produce organic fragrant raw materials which have great demand in the world. Considering its close linkages with grass-root economics, it can reboot the Indian economy from the ground level.

·         Global fragrance & flavor industry is worth $24.10 Billion and India contributes approximately $500 million. However, the growth rate in India is approximately 11% in the last few years but is projected to grow exponentially in the upcoming years due to rising personal care, brand awareness, increasing disposable income, growing demand in middle-class people, and affordable price of fragrance in the form of mass perfumes & deodorants.

·         Looking into the success of Fragrance & Flavors Development Centre, Kannauj & its self-sustainability for the last six years and increasing demand for its need across the country and potential, there exists a need for opening such kind of center in all states. Different geographical locations need a different approach for different products and technology to work with.

• Potential for India:
• Worldwide, approximately 300 important natural fragrant raw materials are in use. Out of these, only 50% are cultivated and the rest are found in wild habitation (e.g. Nagrarmotha, Kewra, etc). Out of the cultivated raw materials, 110 cultivated natural fragrant raw materials cover 95% of the current global consumption in fragrance & flavor. Out of these, there are 31 for which India is well known globally and there are nearly 21 which are grown but not to a level for global significance. India has made a global impact with essential oils of Menthol mint, Sandalwood, Jasmine, Tuberose, and spices.
• Menthol Mint was introduced in India in 1954 and then different variants were developed by CSIR-CIMAP and extension work was done by different organizations including FFDC Kannauj. In 2007 FFDC, Kannauj made a tie-up with MCX for analyzing the mint oil for forwarding trading, and thereafter, the sharp rise in Mint oil took place due to better benefit to farmers to the extent of 20-30% and hence more production making India a global leader with nearly 90% of total global production with nearly 40,000 tons of oil. Uttar Pradesh itself gives 80% of the total production of India while Bihar gives 13% and Madhya Pradesh gives 7%.
• Fragrance & Flavour Development Centre, Kannauj (FFDC) has been set up in 1991 by Govt. of India with the assistance of UNDP/UNIDO, and Govt. of U.P. UNDP/UNIDO has provided technologies, Govt. of U.P. has provided land, building, and infrastructure, while Govt. of India is contributing for the recurring, non-recurring and indigenous apparatus & equipment. The concept behind setting up the center is to act as an interface/bridge between research & industries of essential oils, fragrance & flavor.

This post explains the export process of EssentialOils, Perfumery Cosmetics, government rules to export Essential Oils, & Perfumery Cosmetics, different precautions to be taken care to export Essential Oils, & Perfumery Cosmetics, and export documentation to export Essential Oils, & Perfumery Cosmetics.

If you would like to export Essential Oils, Food Supplements, and Perfumery Cosmetics detailed general information on how to export has been mentioned in a separate article. Learning the export process for Essential Oils, Perfumery Cosmetics or Toilet Preparations makes it easier for you if you can go through the said post.

India has 15 agroclimatic zones that comprise ~18,000 types of plants, of which 6,000-7,000 have therapeutic properties. These medicinal plants are used in numerous applications in Indian society and used to make medicines in traditional medical practices such as Ayurveda, Unani, Siddha, Sowa-Rigpa, and homeopathy; also used in plant-based pharmaceutical companies. ~960 types of medicinal plants are traded, of which 178 species have yearly consumption levels of >100 metric tonnes. ~80% of medicinal plants are extracted from the wild, while 69% of plants are collected using destructive farming practices.

For Exporting procedure of OILS and HERBS from India.

Just as for imports, a company planning to engage in export activities is required to obtain an IEC number from the regional joint DGFT. After obtaining the IEC, the exporter needs to ensure that all the legal compliances are met under different trade laws.

Further, the exporter must check if an export license is required, and accordingly apply for the license to the DGFT.

An exporter is also required to register with the Indian Chamber of Commerce (ICC), which issues the Non-Preferential Certificates of Origin certifying that the exported goods originated in India.

Import and export documents

Businesses are required to submit a set of documents for carrying out export and import activities in India.

These include commercial documents – the ones exchanged between the buyer and seller, and regulatory documents that deal with various regulatory authorities such as the customs, excise, and licensing authorities, as well as the export promotion bodies that help avail export import benefits.

The Foreign Trade Policy, 2015-2020 mandates the following commercial documents for carrying out importing and exporting activities:

• Bill of lading or airway bill;
• Commercial invoice cum packing list;
• Shipping bill or bill of export, or bill of entry (for imports).

Additional documents like certificate of origin and inspection certificate may be required as per the case.

The important regulatory documents include:

• GST return forms (GSTR 1 and GSTR 2);
• GSTR refund form;
• Exchange Control Declaration;
• Bank Realization Certificate; and
• Registration cum Membership Certificate (RCMC).