Exporting Honey..................
HS Code : 04090000
For those Indians in the business of honey exports, the past few years have actually been ‘extra sweet’. India’s exports of natural honey has grown in proportion to the increase in consumption across international markets, making this non-fancy food product a clear treat for exporters in India.
Next time you are at a local supermarket, walk around and take a closer look at the aisle selling honey – from natural honey to the processed and value-added type, Indian markets are flooded with honey of various types and brands. And not just India. Even if you look around the aisle selling honey in an American supermarket, the choices available in terms of source and flavour and size and packaging truly boggles the mind. Honey is as ubiquitous in kitchens in the boroughs of Brooklyn as they are in the larder of a quaint Parisian patisserie. Considered nature’s original sweetener, honey has emerged as a popular alternative for those looking for a healthy switch from processed sugar. While ‘processed honey’ has its share of naysayers, it is the India-produced natural honey that continues to shine in the limelight and has seen a boost in both the domestic and international markets.
Indian honey is making a name for itself in international markets is borne by the fact that exports of natural honey from India increased from $31.64 million in FY2010 to $108.68 million in FY2016 – it’s a 243.48% jump! US has been the country that has imported a lion’s share of our honey over the last few years. Imports of natural honey by US from India, witnessed a whopping 355.99% growth during the same period – from $20.93 million in FY2010 to $95.44 million in FY2016. In FY2017 (Q1 and Q2 combined), the total honey exported from India to various countries stands at $42.68 million with US still appearing to have a majority share at $34.78 million. Apart from US, other main importers of honey from India include Saudi Arabia, UAE, Bangladesh and Morocco.
"India’s exports of natural honey to US soared 77% between CY2014 and CY2015"
That US is our largest importer should come as no surprise. According to American Honey Producers Association (AHPA), the annual honey consumption in American is around 227-272 million metric tonne (MMT), with per person consumption of about 0.5 kg per annum. US beekeepers, due to numerous natural factors, have been unable to keep up with the demand. Per the USDA, between CY2014 and CY2015, the US domestic production of honey (from producers with more than 5 colonies) dropped from 71 MMT to 62 MMT, i.e. by 12.67%. It is in this situation that the imports of natural honey from countries such as India, China and Argentina have been on the rise. And not to say, India has been the shining star in the galaxy of honey exporting countries to US. According to AHPA, US imports from India soared from 20,381 metric tonne (MT) in CY2014 to 36,123 MT in CY2015 (a 77% growth), while imports from Vietnam (which used to be a major source of natural honey for US some time back) declined from 47,107 MT in CY2014 to 37,071 MT in CY2015. Not only that, as per AHPA, the honey imported from India has seen an increase in both volume and price. The price of Indian honey increased from $1.32 per kg in CY2001 to $3.51 per kg in CY2015.
India exported 38,177.08 metric tonne (MT) of natural honey to the world in FY2016, with United States, Saudi Arabia, United Arab Emirates, Morocco and Bangladesh being the biggest export destinations.
The scope and demand for honey have inspired a variety of players to enter the market – from big brands like Dabur, Himalaya and Patanjali to various small and upcoming honey-producing farms. While most of the big brands procure natural honey from beekeeping farms around the country which is further rebranded and sold across the world, many of the local honey producers are also taking a step in the direction of exports. To be honest these small honey exporter can provide better honey at much lower rates as compared to other big firms.
"India’s natural honey production is expected to grow to 95,000 MT in FY2018"
Honey adulteration has been a major challenge for natural honey producers as sellers of such products offer their outputs at much lower prices. Business Ethics to provide the right quality as demanded will succeed you in International Market. Many Honey exporters don't deal if importer asks for lower quality honey, they have maintained their standards.
All exporters of honey are required to go through the Export Inspection Council of India (EIC) for the export of honey. So, now one requires an approval certificate to export honey from India. To get this certificate, exporters are required to get tests conducted via one of the 24 approved laboratories which include both EIC run facilities and private domestic and international agencies such as Intertek (from Germany). Then, as per protocol, they are required to get a final approval from the EIC. The council is permitted to frequently conduct checks at these facilities to ascertain that the laboratories are adhering to their guidelines https://www.eicindia.gov.in/
What’s more? The exotic and value-added varieties of honey fetch even better margins across international markets. Well, we can already smell that sweet scent of success! Can you?!