How to start Cotton export business from India

How to start Cotton export business from India

Cotton is a natural fiber. It is a versatile material that is used to make a variety of products such as mats, rugs, ropes, brushes, and other household and industrial goods. Cotton is a renewable and eco-friendly material that is biodegradable and can be recycled.

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Overview of Cotton export industry in India

India is one of the world’s largest producers and exporters of cotton, making it a major player in the global cotton export industry. The cotton export industry in India is a significant contributor to the country’s economy, providing employment opportunities and generating foreign exchange earnings.

India’s cotton export industry is supported by a robust infrastructure, including modern ginning and pressing factories, textile mills, and ports for shipping. The cotton industry in India is primarily located in the states of Gujarat, Maharashtra, and Andhra Pradesh, with Gujarat being the largest cotton producer in the country.

Steps for Exporting Cotton Products from India

These are the following steps required to be taken in consideration before exporting cotton and its allied products from India.

Obtain necessary licenses and registrations

Exporting Cotton products from India requires obtaining necessary licenses and registrations such as Import Export Code (IEC), Registration Cum Membership Certificate (RCMC), and Goods and Services Tax (GST) registration.

Identify the market and target customers

It is essential to identify the target market and customers for Cotton products. Research the demand, competition, and regulations in the target market to ensure a successful export strategy.

Identify and select Cotton products to export

Cotton products are available in various types and grades. Identify the product that has high demand in the target market and ensure that it meets the quality standards and regulations of the destination country.

Procure raw materials and manufacture Cotton products

Raw materials for Cotton products such as coconut husks and Cotton fiber can be procured from local suppliers. Ensure that the manufacturing process follows quality standards and meets the requirements of the destination country.

Packaging and labeling

Packaging and labeling play a crucial role in the export of Cotton products. Ensure that the packaging is sturdy, and the labeling follows the regulations of the destination country.

Shipping and logistics

Select a reliable shipping and logistics provider who can handle the export process efficiently and ensure that the products reach the destination country on time.

Function of Cotton Export Promotion Council (TEXPROCIL)

The Cotton Export Promotion Council is a government agency established to promote and develop the Cotton export industry in India. The primary functions of Texprocil include market development, export promotion, and providing support services to exporters.

It provides various services to exporters such as market intelligence, export documentation, quality certification, and financial assistance for export promotion activities. Registering with TEXPROCIL can provide several benefits to Cotton exporters such as access to market information, export promotion activities, financial assistance, and other support services.

Documents to be enclosed for Cotton export business

How can Professional Utilities help in setting up a Cotton export business from scratch?

Over the period of time, we have helped various import-export oriented businesses in setting up their company and getting their export license with respective authorities in India. Professional Utilities is “One Stop Corporate Solution” for all your business needs. With our team of experts and legal guidance you don’t need to worry about paperwork at all.

  • Provide details & documentation
  • Submission of Fee
  • Issuance of certificate from respective boards/council

Frequently asked questions

What is the Fee For TEXPROCIL Registration?

The fee for member exporters is INR 20,060 and  for registered exporters 10,620 respectively.

What are the documents required to start a cotton export business from India?

These are the following documents required to start a cotton export business in India.

  1. Company Incorporation/ partnership firm/ registration certificate
  2. IEC code
  4. GST certificate

Role of TEXPROCIL in cotton export business

TEXPROCIL provide various benefits to its members

  1. Market research 
  2. Technology
  3. Funds
  4. Helps find new market

Do exporters of cotton products require IEC registration?

As per the guidelines of DGFT exporter-importers of all kinds of products required IEC certification code.