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How to start an Organic Food Products Business in India

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start organic food store

Organic food products business

If you want to start your own organic food products business, you have to make a very smart move. The demand for organic food is increasing. Everyone wants to live a healthy life. People are willing to spend more on healthy and natural foods and green vegetables. The number of organic farming and grocery chains selling organic food products items is increasing. The Indian organic food market has a good future and is expected to grow by about 25% in 3 years. So there is a good chance for the organic farming business.

Opening an organic food products business

If you decide to start an organic food store business, it definitely requires detailed planning and many things to look out for. The organic food store business is not just about the ingredients, it is also the right place. The right location is an important factor in determining the success of your store. You will always want to see if local support is accessible and if there are more steps to increase sales. The sales promotion techniques you follow are also important in determining store success. Below are some steps you can follow to start your Organic Food Store business.

Find a location for your store

This is the most important and lengthy step in the process of starting an organic food shop business and can take many months. As discussed above, location is a key factor in-store success. You should try to open a store in an important place where people are well aware of organic food and are willing to spend it.

Securing the location of your store

You can negotiate offers with the landlord if you rent the space. You will need to sign a lease agreement. Also, you have to apply for the required building permit and want to take the hell out of the interior designer.

Apply for required registration and permits

Some rules and regulations must be met before you can begin the process. These are:

  • Any company that starts a food business and handles the preparation and sale of food needs the approval of the Department of Health
  • Your organic store must be officially certified by the Organic Trade Association
  • You will need to file an EIN or employer ID number
  • Select the type of company that will be in the limited liability company, sole proprietorship, or partnership
  • Apply for GST registration (your income is expected to be over Rs. 20 lakhs in the financial year) and PAN
  • Open a bank account in the name of your business

Decide on the organic foods you sell

This step is also important for business. The organic foods you sell in your store need to be carefully decided based on their demand and profitability. You also need to establish a network of organic food distributors. So, you need to do a lot of research before hiring dealers. You have to inquire a lot about the pricing, credit, and delivery terms of different distributors.

Setting prices for your products

It takes a lot of calculations to set the right price for your products. If you set prices too low, the sales volume may be high, but you cannot cover your fixed and variable costs. On the other hand, if you set prices too high, price-sensitive customers may leave. So, you have to do a lot of math and determine the optimal prices for your products.

Assigning manpower to your store

Any business needs optimal and adequate manpower, so you need good staff and managers for important activities such as finance, operations, sales, marketing, stores, and purchasing. The number of employees you need depends on the size of your operations.

Management of your organic food store

You must maintain the optimal quality of your food and you must adapt to customer preferences. If your store is adequate, you should install a CCTV camera to control theft and have good control over the supply chain.

Marketing your organic food store

There are many types of marketing techniques, such as word of mouth and advertising on social media. You can also have your own website. There are offline methods like banners and posters.

The organic food products business needs investment

On average, you earn around Rs. 10 lakh to start an organic food store business. The investment amount includes rent for space, running expenses to pay salaries and other operating expenses, and inventory of organic food items. You have to spend money on furnishing and interior decoration.

Financial Options for the Organic Products Business

We, at LendingCard, have attractive business loan options. If you have an established business that has been in operation for more than six months, you are eligible for a loan through LendingCard. If you have all the recommended documents, you can get a loan with the click of a button. Providing a business credit lending card is unsafe, so you do not need to provide any network or security. EMIs can be paid monthly or weekly.


Starting an organic food store business is a good idea and can be very profitable if done with careful and detailed planning, the place is properly selected, it is well managed and marketed.

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