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Exporting Joss Sticks (Agarbatti) from India: A Comprehensive Guide
- Saurabh Pandey
- Mar 24, 2023
- 6 min read
India is known for its diverse culture, and one of the essential parts of this culture is the use of incense sticks or joss sticks. These aromatic sticks are widely used in religious and spiritual practices, as well as for personal and home fragrance purposes. India is one of the leading producers of incense sticks, with a significant portion of its production being exported to various countries around the world. In this blog post, we will explore the process of exporting joss sticks from India, including the necessary regulations, documentation, and other essential aspects to consider for those interested in this business. Whether you are a seasoned exporter or a beginner, this guide will provide valuable insights to help you navigate the process of Exporting Joss Sticks (Agarbatti) from India.
Table Of Content
6) How can I find the best supplier of Joss Sticks (Agarbatti) in India and what prices are currently being offered for Exports ?
1) Benefits of Joss Sticks :-
Incense sticks have been used for centuries for various purposes, ranging from spiritual practices to medicinal benefits. The soothing fragrance of incense sticks can provide numerous advantages that can improve our physical and mental health. Here are some benefits of incense sticks:
Firstly, incense sticks can provide aid in sound sleeping. The aroma of incense sticks can make us feel calm and relaxed, which can aid in sound sleeping. Lack of proper sleep can lead to fatigue and unfocused mind, which can be prevented by using incense sticks before going to bed.
Secondly, incense sticks can reduce headaches and stress. The aroma of incense sticks can help in reducing stress levels and headaches by opening mental blockages, providing relief in congestion, and relaxing the nerves. This can lead to decreased anxiety levels, thus calming down the mind.
Lastly, incense sticks can connect us to spirituality. Lighting incense sticks during daily prayers or performing any rituals is considered pious in different religions. Its smell is also believed to open a gateway of Hriday (heart) chakkra leading towards prosperity and happiness.
2) Export Market Size : -
It is worth noting that the global incense market is growing rapidly due to the increasing popularity of these products for their therapeutic and aromatic benefits. As you mentioned, India is one of the leading exporters of incense products, and the United States is one of the largest importers. According to recent data, the top importers of incense products from India are the United States with a value of 11.3 million USD, followed by the United Arab Emirates with 6.38 million USD, Brazil with 5.80 million USD, Japan with 5.0 million USD, and Nigeria with 5.50 million USD. The United States incense market has also been growing steadily over the years, and it is expected to continue to do so in the coming years. As of 2018, the market size of incense in the United States was 128 million USD, and it is forecast to reach 281 million USD by 2025, with a CAGR of 11.89% from 2018 to 2025. Overall, the incense industry is a significant contributor to the global economy, and its growth is fueled by the increasing demand for natural and eco-friendly products.
Agarbatti export from India is experiencing significant growth, with exports worth 90.64 USD million in the year 2020-21. Despite tough competition from China and Vietnam, India has managed to maintain its dominant market share within the industry by producing high-quality and affordable incense sticks. In addition, the popularity of incense sticks is growing in Western markets, presenting new global opportunities for Indian manufacturers. With a wide range of fragrances available, including jasmine, lavender, rose, and sandalwood, Indian-made incense sticks are well-positioned to attract a wider customer base world.
3) Top Competitor In Agarbatti Export :-
While India is the largest exporter of Agarbatti in the world, China and Vietnam are also significant competitors in the industry. As per Volza's India Export data, China ranks second with 13,395 shipments and Vietnam ranks third with 10,777 shipments of Agarbatti exports. However, India has been able to resist tough competition from these countries in the past few years due to its high-quality and diverse range of Agarbatti products. India's ability to maintain its dominant market share within the industry can be attributed to its ability to produce affordable yet high-quality products that cater to a wide range of customers worldwide.
4) HS Code & EPC applicable for agarbatti (Incense Stick) Export from India
Effective immediately, the product category of "Agarbattis" has been removed from the jurisdiction of Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (CHEMEXCIL) and allocated to the Export Promotion Council for Handicrafts (EPCH). This change is reflected in Sr. No. 2 of Appendix-2 of HBP Vol. I.
Agarbatti exports from India fall under the HSN code 33074100, which includes agarbatti (Joss stick) and other odoriferous preparations that operate by burning. The top 3 product categories of Agarbatti and their corresponding HSN codes are as follows:
Agarbatti and other odoriferous preparations - HSN code 33074100
Incense sticks - HSN code 3307410000
Scented candles - HSN code 33074100000
If you are involved in the export of Agarbattis from India, please take note of these changes and ensure that you are complying with the regulations set forth by the Export Promotion Council for Handicrafts (EPCH).
5) Procedure to Export Agarbatti from India
Individuals and businesses in India can legally export agarbatti, provided they follow the proper procedures. To begin the process, one must obtain a Certificate of Registration (COR) from the Indian Customs Department. The COR form must be filled out and submitted, along with a customs declaration, to the local Indian customs office.
Guidelines for exporting agarbatti (Joss Stick) will be provided in the COR form, including information on the amount that can be exported, where it can be shipped, and any duties that must be paid. Additionally, the agarbatti (Joss Stick) must be made from natural materials, be less than 60 centimeters long and 2.5 centimeters in diameter, and not wrapped in plastic or other synthetic materials. Exporters should consult with an Export Consultant if they have any questions about the process. After fulfilling these requirements, agarbatti can be legally exported from India.
6) How can I find the best supplier of Joss Sticks (Agarbatti) in India and what prices are currently being offered for Exports ?
India is home to around 5,000 incense companies that rely on roughly 200,000 part-time home-workers, primarily women, to hand-roll raw un-perfumed sticks, add their own scents, and package them for sale. The most experienced workers can produce up to 4,000 sticks a day. Of the 25 main companies, around 500 firms are based in Bangalore and account for up to 30% of the market. Karnataka is the leading producer of agarbatti (incense sticks) in India, with Mysore and Bangalore being the primary centers of scented agarbatti production. Gaya, Bihar, is known for producing unscented agarbatti. Maharashtra, Gaya, and Gujarat have plenty of manufacturers, and the western India agarbatti market is dominated by them.
The ex-factory price for agarbatti in India ranges from 130-150 INR per kilogram for bulk orders, while the FOB price for exports is usually 250-300 INR per kilogram for orders of 250 kilograms or more. It's important to note that prices may differ based on agarbatti quality and supplier. Agarbatti production, along with Dhoop-Deep, has been growing in recent years across India.
7) Conclusion
The agarbatti industry in India has faced challenges from competition with Chinese and Vietnamese products, which offer superior quality and lower pricing. However, government intervention in the form of awareness campaigns and machinery schemes has helped the industry scale up, and exporters have been able to tap into new markets such as Iran, Iraq, and the Netherlands. With new opportunities emerging in the Middle East and Africa, exporting agarbatti from India has become even more important for the industry's growth and sustainability.
For those looking to start their own agarbatti (incense Stick aka Joss Stick) export business in India, MHW Overseas can provide valuable guidance and support. As an experienced export consultant in India, MHW Overseas can assist with buyer research, provide a list of potential buyers in overseas markets, and offer complete guidance on how to export from India. With MHW Overseas' expertise and hand-holding, exporters can navigate the challenges of exporting agarbatti and successfully expand their business to international markets.