Introduction: Export Of Butter And Dairy Spreads

India is one of the largest exporters of dairy products and it also holds the largest milk industry in the world. The country played a significant role in exporting dairy items during the COVID-19 pandemic. India's dairy industry has grown exponentially over the past ten years, making it one of the world's top producers of milk and milk products. India also provides a wide range of opportunities for entrepreneurs in India. The sector has extra-ordinally over the past decade become an industry worth 1676 Crore Industry. Just like milk, another product to be successfully exported is Butter and Dairy spreads. As per statistics, the total export of butter is valued at around 109.81 USD million. Another product to be largely exported from India are milk Spreads.

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Top 5 Countries of India Exports

How Are Food Items Exported From India?

Food products are considered to be the most essential exports from India. It is necessary to take extra precautions and run additional tests as foods determine the health and safety of their consumers. Hence assessment of food before being exported must be thorough and clear and it is the responsibility of the Government to ensure the same. Butter and Dairy spreads are covered under similar rules that are applicable to other food products. 

In India, the apex authority that deals with the safety of food and approves the quality of a food product is the Food Safety and Standards Authority of India (FSSAI).  An exporter needs to necessary adhere to the rules laid down by the FSSAI and also the provisions of the FSS Act of 2006. After due process, the FSSAI shall grant a Licence to move ahead with the exportation.

Procedure For Export of Butter and Milk Spreads

• Import-Export Code

An export license needs to be obtained from the Directorate General of Foreign Trade (DGFT). The body allows an Import Export Code (IEC) number. The number is extremely crucial for the traders as it shall help them clear customs and smoothly initiate transactions. The number is permanent and valid for a lifetime. There are certain products barred and may require additional permits or licenses. There are a few exemptions made as well which means those are not required to issue an IEC Code.

• Obtain the FSSAI Central License

The FSSAI is the prime authority that is set up to grant licenses to a food product. Established under the Ministry of Health and Family Welfare, unless approval and a license are not obtained, the food product is deemed to have not cleared the basic safety standards.

• Agricultural and Processed Food Products Export Development Authority (APEDA)

Set up by the Ministry of Commerce, the APEDA provides registration of individuals as scheduled product exporters and establishment of criteria and specifications for such products for Export. 

• NOC

All importers and exporters must first get a "No Objection Certificate" from the FSSAI to submit their application. Without a valid NOC, they are unable to apply for an FSSAI export license. This certificate is mandatory for mainly export merchants.

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The FSSAI Export Rules

• Products should have a long shelf life and a fair amount of remaining shelf life when they are cleared out.
• Following the 2011 Compliance with the FSS (Packaging & Labelling) Regulations, products must be packaged and labelled suitably.
• The food shouldn't include any bugs or mould.

Packaging Standards for FSSAI Merchants

Include all relevant information about the product and its ingredients on the package when sending food across foreign boundaries.

• Volume and weight of the products exported.
• Name of the firm, brand, or item
• Nutrition information.
• The FSSAI (Packaging & Labelling) Regulations, 2011, as well as any other labelling requirements unique to the particular product, must be complied with by the labelling text.
• Details regarding the expiration date, total weight, and vegetarian or non-vegetarian status shall be denoted 

Legal Authorities

• Directorate General of Foreign Trade (DGFT)

The DGFT is a certified organization affiliated with the Ministry of Commerce. It has been assigned to look after the exports of the country and promote the same. With its headquarters in Delhi, DGFT keeps a check and hands licenses to exporters for international business. The organization plays a crucial role in monitoring and maintaining standards as well as adhering to the WTO agreement for the development of international trade.

• Agricultural and Processed Food Products Export Development Authority (APEDA)

Earlier known as the Processed Food Export Promotion Council (PFEPC), the primary role of this institution is to promote the export of products. 

• Export of Milk and Milk Products (Quality Control, Inspection, and Monitoring) Rules, 2020

The Ministry of Commerce made obtaining an export worthiness certificate from a government organization a requirement for milk and milk product exporters to ship their goods abroad. Before export, milk and milk products must pass quality control, inspection, or both in circumstances where importing nations want such an export certification. As a result, exports of milk and milk products that do not meet the criteria will be prohibited. The exporter must apply for approval of the location where the proposed product is made or processed following the inspection process supported by the Food Safety Management System.

• Export Inspection Council

The Export Inspection Council (EIC) is India's official organization for export certification, ensuring the quality and security of goods leaving the country. EIC was established by the Indian government following Section 3 of the Export (Quality Control and Inspection Act, 1963) to promote the healthy growth of India's export industry through quality control, inspection, and related issues. EIC's responsibility is to make sure that goods that have been declared under the Export (Quality Control and Inspection) Act of 1963 are safe and up to par in terms of quality.

Procedure to Obtain FSSAI License

• Incorporation

To proceed, the applicant must first incorporate a business using one of the two following business formats. 

1. Limited Liability Partnership;
2. Private Limited Company; and
3. Partnership

• IEC Code

The applicant must now visit the official DGFT webpage to request an Import Export Code from the Director General of Foreign Trade (DGFT).

• No Objection Certificate

The following stage is for the application exporter to obtain a No Objection Certificate from the FSSAI regarding the food quality and compliance with regulations.

• License Granted

The Central Licensing Authority shall now after duly checking everything grant the exporter an FSSAI Licence. 

Conclusion

There is a huge global consumer base for Indian food goods, therefore demand is not just restricted to Indian Territory. Every exporter must obtain an FSSAI License in order to compete on a worldwide scale. This license spreads a glimmer of hope that products were made in clean, hygienic conditions throughout the world therefore for ease of shipment and business, it is essential that each exporter shall abide by the terms of export in India.