Last updated: December 12th, 2022 1:50 PM

Promotion of Indian Spice Brands Abroad

The Indian Government has initiated the "Promotion of Indian Spice Brands Abroad" Scheme for exporters under the Department of Export Development and Promotion of Spices. Under this scheme, the Government provides financial assistance to the exporters for launching/ promoting their brands or buying existing brands. This scheme aims to advance Indian Spice Brands in foreign markets, targeted beyond the ethnic Indian population. In this article, we look at the Promotion of the Indian Spice Brands Abroad Scheme in detail. To know about the Export and Import Procedure in India

Eligibility Criteria

• All the registered exporters who have registered their brands with the Board, Spice House Certificate (SHC), Logo holders, and organic certification holders are eligible to avail the benefits of the scheme.
• An expert committee authorized by the Spices Board will evaluate the proposal and make the approval. The facility will include spices in all forms exported in institutional packs up to 25 kgs, and consumer loads of herbs in any form, including curry powders and mixed ground spices up to 5 kgs, will be covered for availing the assistance under this scheme.

Activities Assisted under the Scheme

The below following are activities supported for promoting spices and spice products which are assisted under the Promotion of Indian Spice Brands Abroad, are as follows:

• Product and Packaging Development and Bar Coding
• Brand Promotion

Assisting these above components are essential for developing export business, securing orders, more beneficial presentation of capabilities to the buyers, and promoting scientific/modern packaging for the retail market.

Assistance for Product and Packaging Development and Bar Coding

Assistance is being provided for effective brand promotion, and packing the identified products involves a high cost of development. Under this activity, aid will be given for developing the appropriate product, packaging, and compliance with all the requirements in force in the target market, including traceability and Bar Coding details. Similarly, the Board also assist the exporters in promoting different applications of spices and their values. Assistance is also provided to buy out the existing foreign brand to place that market and expand the wide range of Indian products through this brand.

Assistance for Brand Promotion

Under this activity, the positioning of identified brands in the specified outlets in selected cities, as well as necessary promotional measures for branding such as Promotional trips abroad, Participation in international fairs, Media promotion, etc., are considered for the financial assistance. The Board will undertake the required marketing strategy development and market studies for promoting branded products, and will be distributed to the exporters for market penetration.

Scale of Assistance

Interest-free loan amounts up to 100% for slotting or listing fees and promotional measures and 50% of the cost of product expansion, subject to a maximum of INR 2.50 crores per brand and INR 5 crores where brand buyout is involved for the following activities as follows:

• Product and Packaging Development and Bar Coding
• Brand Promotion

These above activities will be conducted per exporter during the XI plan period. The exporter has to meet the complete foreign exchange requirement for undertaking the brand promotion and another related campaign. The assistance provided is restricted to the first three years of promoting the brand.

Implementation of the Scheme

Spices Board will periodically review the records of implementation of the scheme, expenditure, export growth, etc., and continuation of the assistance provided will depend primarily based on the following:

• Stability and reach of the given brand in the market
• Qualitative analysis of the brand approval in the market
• Export growth in real terms.
• Growth and competence of the brand

An exporter can avail of the assistance amount under the scheme for promoting the brand given in a maximum of five countries in the XI plan period. At the end of the 3rd year, a detailed review will be made by the Spices Board to define the impact and need for the continuation of assistance, if required, from the aid for a further period.

Mode of Operation

• The implementation of an appropriate marketing strategy will evolve in consultation with the Board per the market study. Based on the market study directed and indications about sufficient potential, prospective exporters/exporters who wish to participate in the scheme will be identified.
• Once the loan has been approved, the Board will provide the loan amount to the exporters to meet their estimated annual expenditure for their brand promotion following the activities approved by the Spices Board and in the manner stipulated. After getting the loan amount, the exporter has to submit the half-yearly progress report to the Board, and the same will be reviewed by a committee constituted by the Board for the purpose.

Repayment Process

The repayment of the loan amount can be in equal annual installments beginning from the 4th year to ending in the 8th year from the date of receipt of the fund by the applicant exporter.

Application Procedure of the Scheme

The exporter who wants to avail of the assistance under this scheme has to follow the below procedure: Step 1: The applicant must approach the Spices Board to apply for this Promotion of Indian Spice Brands Abroad Scheme. Step 2: Then, the applicant has to get the scheme form from the office and fill it out the in the prescribed format along with copies of the detailed proposal, including details of the market promotion to be offered with the cost break up in each segment separately. The scheme form can also be downloaded from the official web portal of Export Development and Promotion of Spices. The same has been reproduced below for ready reference in PDF format. Step 3: On submitting the application form, the total approved amount for the activity will be released in 3 equal installments at the beginning of each year. Step 4: Before releasing the loan amount, the applicant must provide a bank guarantee in the prescribed format for the amount equivalent to the loan sanctioned on a stamp paper. Step 5: The guarantee has to be renewed well before the expiry date. The guarantee also has to be enhanced as and when further loan installments are released/ sanctioned, and an amended agreement on the stamp paper must also be executed to the Boar. Step 6: The applicant will have to provide a detailed report/ records of the activities undertaken along with a progress report and an expenditure statement that the loan has been fully utilized only for the sanctioned purpose and must be submitted at the end of each year. Step 7: The supporting documentary proofs for the expenditure incurred/ committed has to be produced to the Board. Step 8: An export obligation of 5 times the loans availed over eight years from the withdrawal of the 1st installment of the loan. Step 9: Finally, the applicants can avail of the loan funds on completion of the formalities, and the fund will be transferred to the applicant at the earliest. Note:

• If any misuse of the funds from the given loan amount, the exporter has to refund the entire loan amount together with the existing rate bank interest plus period interest of 2% immediately to the Board.
• In the event of any default in the repayment, the Board reserves the right to request the bank guarantee produced by the loanee and recover the loan amount.
• In the case of conflict, the committee's decision would be final.