Where And How to Export Ground Nut Profitably

India is a leading producer of groundnuts and offers both bold and Java varieties to international markets. These high-quality groundnuts, renowned for their freshness and rich oil content, are in high demand across countries such as Indonesia, Vietnam, Malaysia, and the Philippines. Groundnut exports contribute significantly to India's agricultural income, support rural livelihoods, and drive economic growth. In this article, we will learn in detail about groundnut exports from India, the process, compliance, and more.

Overview of the Groundnut Industry

India’s groundnut industry plays a crucial role in its agricultural sector, with Gujarat, Andhra Pradesh, Tamil Nadu, Rajasthan, and Karnataka as the top producers. In 2023-24, Gujarat led the industry with 36.74 lakh tonnes and contributed to the total national production of 70.1 lakh tonnes.

Major export destinations for Indian groundnuts include Indonesia, Vietnam, Malaysia, and the Philippines. Among others, Indonesia is the largest importer. India exports approximately groundnuts worth of 22 billion to Indonesia. These exports boost India’s economy and support farmers and processing units.

Top Groundnut Export Destination:

As of the 2023–24 fiscal year, India exported approximately 680,698.61 metric tonnes of groundnuts worldwide, valued at Rs.7,135.35 crore (about USD 860.68 million) (exportimportdata.in). The top five Southeast Asian destinations for Indian groundnut exports were:

European Market for Peanut Export

European market is also a good place to export ground nuts. Let’s see the comparison.

When comparing the South East Asian and European markets for groundnut (peanut) exports, both regions offer potential, but each has unique advantages and challenges. Here's a breakdown to help you decide which market might be best based on your business goals:

South East Asian Market

Advantages:

• Proximity and lower logistics cost (especially for Indian exporters).
• High demand for raw, blanched, and roasted groundnuts.
• Countries like Vietnam, Indonesia, Malaysia, Thailand, and the Philippines are major importers for processing and re-export.
• Fewer regulatory hurdles compared to Europe.
• Increasing consumption of plant-based snacks and oils.

Challenges:

• Prices may be lower due to competition from domestic and regional suppliers (e.g., China).
• Less emphasis on organic and quality certifications, but growing.
• Some markets are price sensitive rather than quality-driven.

European Market

Advantages:

• High demand for organic and premium quality groundnuts, including peanut butter and processed snacks.
• Buyers are willing to pay premium prices for quality, safety, and sustainability.
• Countries like Netherlands, Germany, UK, and France are key import hubs.
• Strong preference for aflatoxin-free peanuts with certified food safety (e.g., HACCP, BRC, ISO).

Challenges:

• Strict food safety and aflatoxin regulations (especially from EFSA).
• Requires certifications and lab testing – increases export costs.
• Competitive market with established suppliers from Argentina, China, and the US.

Verdict

Best Market

• If you are focused on volume, faster turnover, and lower cost logistics, South East Asia is more suitable.
• If you can ensure high-quality standards, certifications, and want better profit margins, the European market is ideal.

Process to Export Groundnut from India:

Below is the step-by-step guide to export groundnut from India:

Step 1: Source Quality Groundnuts

The exporter must ensure that the groundnuts are sourced from trustworthy and certified farms or production units. These groundnuts must meet both national and international quality standards. The exported should also ensure that the groundnuts are free from any contaminants, such as pesticides, fungi, or harmful bacteria.

To guarantee quality, the exporter should work with farms that follow best agricultural practices and adhere to food safety guidelines. This step helps maintain the integrity of the product, ensures the health and safety of consumers, and strengthens the exporter’s reputation in global markets.

Step 2: Grading and quality control

Once sourced, the exporter must grade the groundnuts based on size, oil content, and overall quality. This step helps categorize the groundnuts for various markets and uses. Quality control checks ensure that the groundnuts meet the required export standards. The exporter must verify moisture content to prevent spoilage during transport and storage.

Other than that, they must check for mold, defects, or contamination. When the exporter follows these procedures, they ensure that high-quality groundnuts reach international buyers, which in turn boosts their reputation and meets global market demands.

Step 3: Packaging for Export

The exporter must package the groundnuts in moisture-proof, durable materials to protect them during transport. Packaging should meet the importing country's requirements and include necessary labels, such as product details and origin information. Proper packaging ensures the product stays intact and complies with international standards.

Step 4: Obtain required Licenses and certificate

To export groundnuts, the exporter must obtain the necessary registrations and licenses that authorize the export of agricultural products and ensure compliance with food safety regulations. These licenses also facilitate smooth customs clearance and international trade. Licenses also ensure that the exporter meets all legal and regulatory requirements for exporting groundnuts.

Step 5: Arrange Customs clearance

Once all the documents are gathered, the exporter submits them to customs authorities for clearance. This step ensures the shipment meets Indian export rules and the destination country’s regulations, which helps allow smooth international trade.

Step 6: Logistics and Shipping

Once customs clearance is completed, the exporter needs to arrange transportation for the shipment. Sea freight is typically used for bulk shipments, while air freight ensures faster delivery. The exporter collaborates with a trusted logistics provider to ensure safe handling and timely delivery to the destination.

Step 7: Final Delivery and Payment

Once the groundnuts arrive at the destination port, they undergo final checks before delivery to the buyer. The exporter must ensure that they meet the payment terms, like a Letter of Credit (LC) or advance payment. After successful delivery, the transaction is completed, and payment is received.

Documents Compliance for Groundnut Export Business

To ensure smooth groundnut exports, the exporter must comply with various document requirements. These include:

• Export Registration Certificate:

The export registration certificate from APEDA is required for legal groundnut exports. It authorizes the exporter to export and provides access to government incentives and support. Registration ensures compliance with standards and maintains product quality for international markets.

• Import Export Code(IEC)

The DGFT issues the Import Export Code (IEC). It is essential for customs clearance. It allows the exporter to conduct international trade and facilitates smooth transactions during export procedures.

• FSSAI

FSSAI Registration is required to meet food safety standards for edible products like groundnuts, ensuring the product is safe for consumption and complies with regulations.

• Phytosanitary Certificate

The Phytosanitary Certificate confirms that the groundnuts are pest-free and meet the health standards of the importing country, ensuring compliance with international agricultural regulations.

• Certificate of Origin

The Certificate of Origin confirms that the groundnuts grow and process in India. It is an essential document for the importer as it helps determine applicable tariffs and trade agreements. This certificate also ensures that the product complies with the importing country’s regulations and preferential trade terms.

• Quality Control Certificates

Quality Control Certificates include documents that certify the groundnuts meet required quality standards, such as moisture content, size, and absence of defects. These certificates confirm that the product meets both local and global quality standards.

• Commercial Invoice

The Commercial Invoice contains details about the sale, which includes the price, terms of sale, and product description. It is essential for customs clearance and verifies the transaction between the exporter and importer.

• Packaging List

The Packaging List provides details about the packaging and the quantity of groundnuts being shipped. It helps customs authorities verify the shipment contents. This Packaging list also ensures that the shipment is handled smoothly during transit.

• Bill of Lading

The shipping company issues a Bill of Lading as a legal document. It helps to confirm the receipt of goods for transportation. It serves as proof of shipment and outlines the terms and conditions of the transport.

Other Compliance to Export Groundnut from India

In addition to the required documents, exporters must adhere to the compliance measures listed below to export groundnut from India:

• Packaging Standards

The exporter must ensure that their packaging follows international norms and meets the importing country’s rules. The materials used must resist moisture, be durable, and ensure food safety. Labels clearly show product details, origin, weight, and batch number.

• Export Documentation Accuracy

The exporter prepares all documents with complete accuracy. These include the commercial invoice, packing list, and required certificates. Any mistake can lead to shipment delays, penalties, or rejection at customs in the importing country.

• Customs Regulations

The exporter follows the customs rules of both India and the destination country. This includes filing all required documents correctly and ensuring compliance with export-import procedures to avoid legal issues or shipment delays.

• Compliance with Importing Country’s Standards

The exporter ensures groundnuts meet the destination country's specific health, safety, and quality norms. This may involve extra inspections or certifications beyond Indian requirements to match international expectations.

• Payment Terms

The exporter follows agreed payment methods like Letter of Credit (LC) or advance payment. This ensures secure and timely financial transactions between the exporter and the buyer.

Role of APEDA in Groundnut Export:

APEDA (Agricultural and Processed Food Products Export Development Authority) plays a crucial role in facilitating and promoting the export of agricultural products, such as groundnuts, from India. It also ensures that the exporters meet international standards and access global markets efficiently:

• Exporter Registration

APEDA (Agricultural and Processed Food Products Export Development Authority) requires groundnut exporters to register with them through a Registration-Cum-Membership Certificate (RCMC). This registration ensures that the exporter is recognized legally and authorized to trade agricultural products in international markets.

With export registration, exporters can access various government subsidies and incentives that aim to promote exports. The RCMC is essential for availing export benefits such as export promotion, quality certifications, and financial assistance.

• Quality and Standardization

APEDA plays a significant role in order to maintain high standards for groundnuts exported from India. It sets clear guidelines for the grading, packaging, and labeling of groundnuts to ensure they meet global expectations.

APEDA’s involvement in standardization ensures that Indian groundnuts receive recognition for their high quality, which in turn helps top build the trust among international buyers. Other than that, it also ensures the correct moisture content, size grading, and absence of foreign matter or contaminants, all of which are crucial to secure export contracts.

• Infrastructural Support

APEDA offers financial assistance and technical guidance to exporters to develop essential infrastructure such as pack houses, cold storage facilities, and testing labs. These facilities help maintain the quality and shelf life of groundnuts during export.

APEDA ensures that groundnuts are stored, processed, and packaged according to international quality and safety standards. This infrastructure improves the efficiency of exports, enabling exporters to scale up operations and meet the growing global demand for high-quality groundnuts.

• Market Development

APEDA helps to promote Indian agricultural products in global markets. It organizes trade fairs, buyer-seller meets, and international exhibitions to help Indian exporters showcase their products. Through these events, APEDA facilitates networking opportunities with potential buyers and helps exporters understand market trends.

This enables Indian exporters to expand their reach, gain insights into international demand, and align their production and marketing strategies with global expectations. This, in turn, boosts the export opportunities for groundnuts.

• Financial Assistance

APEDA provides financial support to groundnut exporters for activities like participation in international exhibitions, improvement of packaging, and obtaining global certifications. This assistance encourages exporters to enhance product quality, adopt new technologies, and strengthen their global presence.

APEDA also offers subsidies for infrastructure development, such as the establishment of pack houses and cold storage facilities, along with support for quality control processes, helping exporters remain competitive.

• Training and Capacity Building

APEDA conducts workshops, training sessions, and seminars to educate exporters about global standards, the export process, and compliance requirements. These programs focus on building the capacity of exporters to meet the challenges of international trade, such as understanding regulatory standards, documenting export transactions, and following customs procedures. The goal is to help exporters understand the latest market requirements and improve their operational efficiency, which leads to higher export success rates.

• Data and Research Support

APEDA provides vital market intelligence, export statistics, and research reports that help exporters stay informed about international market trends, demand patterns, and trade regulations. This information is crucial for exporters to make informed decisions about where and how to focus their efforts. This also offers access to accurate data, and research ensures that groundnut exporters can target high-potential markets and align their strategies to meet market demands.

• Certification and Documentation

With APEDA’s help, exporters can obtain necessary certifications required for international trade. This includes the Registration-Cum-Membership Certificate (RCMC) and export certifications like phytosanitary certificates, which confirm that the groundnuts are free from pests and diseases.

Other than that, APEDA also helps to facilitate the certification process and ensures that exporters can complete their export documentation and comply with the regulations of both India and the importing country. These certifications are essential to clear customs and avoid delays during the export process.

Opportunities and government scheme for Groundnut export from India:

The Indian government offers several schemes and programs to support and promote the export of groundnuts. It also helps exporters improve quality, access global markets, and secure financial assistance for smooth operations. Listed below are few of the schemes that the government offers to support Groundnut exports from India:

• APEDA Schemes:

The Agricultural and Processed Food Products Export Development Authority (APEDA) offers financial assistance, technical support, and training programs to groundnut exporters. These schemes help improve the quality, packaging, and infrastructure needed to meet international standards and facilitate export.

• Market Development Assistance (MDA):

The MDA scheme, under APEDA, supports exporters in participating in international trade fairs and exhibitions. It provides financial assistance to showcase products and promote Indian groundnuts globally, helping exporters find new markets and buyers.

• Transport and Storage Subsidy:

The Indian government offers subsidies for transportation costs and setting up cold storage facilities, which ensures that groundnuts are safely transported and stored to maintain quality and shelf life.

• Trade Promotion and Export Promotion Council:

The Ministry of Commerce and Industry, through various trade promotion bodies, provides support for market research, identifying potential export markets, and fostering trade relations. These efforts help exporters expand their market reach.

• Export Credit Guarantee Corporation (ECGC):

ECGC offers export credit insurance to exporters, which protects them from payment risks. This provides confidence and security for groundnut exporters dealing with international buyers.

In conclusion, India’s groundnut export industry continues to thrive with strong government support and adherence to international standards. With the help of APEDA and various schemes, Indian exporters can ensure quality, expand their market reach, and boost global sales. To ease the export process and ensure compliance, Online Legal India offers essential assistance for businesses that plan to venture into international markets.