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"How To Start Gaur Gum Exports from India" (Uses, Benefits, HS code, EPC and Government benefits)
- Saurabh Pandey
- May 5, 2023
- 6 min read
Updated: Aug 19, 2023
Guar gum is a natural food additive derived from the guar bean. It has a wide range of uses in various industries, including food, pharmaceuticals, and cosmetics. Here are some of the benefits and uses of guar gum:
Food industry: Guar gum is commonly used as a thickener, stabilizer, and emulsifier in food products. It can improve the texture, mouthfeel, and shelf life of foods such as ice cream, salad dressings, sauces, and baked goods.
Pharmaceutical industry: Guar gum is used as a binding agent in tablets and capsules. It can also help to control the release of active ingredients in medications.
Cosmetics industry: Guar gum is used as a thickening agent in lotions, creams, and other cosmetic products. It can also improve the spreadability and viscosity of these products.
Weight loss: Guar gum has been shown to have potential benefits for weight loss by reducing appetite and promoting feelings of fullness.
Digestive health: Guar gum is a prebiotic fiber that can help to promote the growth of beneficial gut bacteria. It may also help to improve digestive function and reduce symptoms of digestive disorders such as constipation and diarrhea.
Guar gum is a versatile and beneficial ingredient with a wide range of uses in various industries. However, it is important to use it in moderation as excessive consumption can lead to digestive issues. come lets explore together "How To Start Gaur Gum Exports from India"
Table of Content
4) What is The HS Code, EPC and Government Benefits for Exporting Gaur Gum from India.
Guar gum is a natural gum extracted from the seeds of the guar plant, and it has a wide range of applications in various industries. The global market for guar gum is driven by factors such as increasing demand in the food and beverage industry, growing use in oil and gas well stimulation, and rising research and application in drug manufacturing and cosmetic industries.
India is the largest producer and exporter of guar gum, accounting for nearly 80% of the world's production. In the fiscal year 2021-2022, India exported 321,395 metric tons of guar gum worth USD 446.8 million. The major importing countries of guar gum from India are the United States, China, and Germany.
Apart from India, Pakistan is also a significant producer and exporter of guar gum, accounting for around 15% of the world's production. Pakistan mainly exports guar gum to the United States, Germany, and Spain.
The demand for guar gum has been increasing in recent years, particularly in the food and beverage, oil and gas, and pharmaceutical industries. Guar gum is a popular additive in food and beverage products because of its thickening and stabilizing properties, while in the oil and gas industry, it is used as a viscosity agent in hydraulic fracturing, also known as fracking. In the pharmaceutical industry, guar gum is used as a binder, disintegrant, and suspending agent. Accoprding to the reports, The guar market is projected to register a CAGR of 4.2% in next 5 years 2023-2028.
The top importers of guar gum from India are the United States and russia. In 2021-22, the United States was the largest importer of guar gum from India, importing goods worth US$108.41 million, accounting for 27% of the total guar gum exports from India. Russia is the second-largest importer of guar gum from India, accounting for 14% worth US$55.42 million of total exports during the same period. Other countries that import guar gum from India include Germany, Norway, China Australia, Canada, Italy, and the United Kingdom.
It is important to note that the demand for guar gum is increasing globally due to its diverse applications in the food, pharmaceutical, and cosmetic industries. Guar gum is a natural thickener and stabilizer, making it an essential ingredient in food products such as ice cream, cheese, and baked goods. In the pharmaceutical industry, it is used as a binder, disintegrant, and suspending agent. In the cosmetics industry, it is used as a thickening agent and emulsifier. (Refer attached Table for brief export data)
4) What is The HS Code, EPC and Government Benefits for Exporting Gaur Gum from India.
The HS Code for guar gum is 130232, which is used to identify and classify the product for customs purposes when exporting from India or importing into another country. India's government offers several benefits to exporters of guar gum under the Foreign Trade Policy (FTP), including incentives under the Merchandise Exports from India Scheme (MEIS) and the Export Promotion Capital Goods (EPCG) scheme. The MEIS provides incentives based on the value of exports, while the EPCG scheme allows for the import of capital goods at zero or reduced customs duty rates for use in the production of exported goods. Additionally, the government has set up various schemes to support the development of the agriculture sector, including the National Agriculture Market (eNAM) and the Pradhan Mantri Fasal Bima Yojana (PMFBY), which aim to increase productivity and profitability in the agriculture sector and support farmers in the production of crops like guar, a major source of guar gum.
The Export Promotion Council (SHFEXIL) was formed in 1957 to enhance India's non-timber forest produce and facilitate the exports of various products, including guar gum. SHFEXIL has implemented strategic initiatives to increase the supply of focus products, conduct product and application research to move up the value chain, and develop the brand of India. The Council has also established a Non-Timber Forest Produce Information Centre (NTFPIC) to provide a platform for stakeholders to highlight their problems and receive support measures needed for export development.
Exporting guar gum from India comes with benefits such as incentives under the MEIS and EPCG schemes, as well as government support programs aimed at increasing productivity and profitability in the agriculture sector. The Export Promotion Council (SHFEXIL) plays a significant role in facilitating exports of guar gum and other forest-based products by providing information and assistance, technology upgradation advising, organizing trade fairs, and building statistical databases for import and export of the country.
In addition to the benefits mentioned earlier, there are more benefits to exporting guar gum from India. One of them is the Drawback (DBK) scheme, which provides a refund of customs duty paid on imported inputs used in the production of exported goods. Guar gum is eligible for a DBK rate of 0.15%, which can help to reduce the cost of production and make Indian exports more competitive in international markets.
Exporters of guar gum can also benefit from India's favorable trade agreements with other countries. For example, India has a preferential trade agreement (PTA) with the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay) that provides for reduced or eliminated tariffs on a range of products, including guar gum. This can help to make Indian exports more competitive in these markets and increase demand for Indian guar gum.
To start guar gum export from India, you can follow these general steps:
Register your business: You need to register your business as an exporter with the relevant authorities such as the Registrar of Companies, and obtain necessary licenses and permits.
Obtain an Import-Export (IE) Code: An IE Code is required for any business engaged in the import or export of goods in India. You can obtain an IE Code by applying to the Directorate General of Foreign Trade (DGFT).
Identify potential buyers: You can find potential buyers through online marketplaces, trade fairs, and business directories. You can also reach out to importers and distributors in your target countries.
Quality control and packaging: Ensure that your product meets the quality standards required by the importing country. You may also need to package the product as per the specifications of the importing country.
Shipping and logistics: Arrange for transportation of the product to the port of export, and arrange for shipping and logistics.
Documents required: Some of the key documents required for exporting coffee from India include:
Import Export Code (IEC)
Registration cum Membership Certificate (RCMC) from the relevant EPC
Bill of Lading (B/L)
Commercial Invoice
Packing List
Certificate of Origin (COO)
Phytosanitary Certificate
Fumigation Certificate
Insurance Certificate
As Rajasthan is the top producer of guar gum in India, you can consider sourcing the product from this state. You may also want to consider approaching the the Agricultural and Processed Food Products Export Development Authority (APEDA) for assistance and guidance on export procedures and regulations. It is also important to keep abreast of changes in export policies and regulations, and to ensure compliance with them.
In conclusion, exporting guar gum from India can be a lucrative business opportunity for those who are willing to put in the effort and navigate the complexities of international trade. With its numerous benefits, including government incentives and a growing demand for the product in various industries, it is an attractive prospect for exporters.
However, starting an export business can be daunting, especially for those who are new to the industry. This is where MHW Overseas, one of the best export consultants in India, can help. Their team of experts can guide you through the entire exporting process, from documentation to buyer finding, making the process smoother and more efficient.
With their wealth of experience and knowledge of the industry, MHW Overseas can help you overcome the challenges of exporting and ensure that you make the most of this profitable opportunity. So, if you're looking to start exporting guar gum from India, MHW Overseas can be your ideal partner to achieve your goals and succeed in the global market.
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