TaxTMI 
TaxTMI 
Export of Dehydrated Onion and Garlic Powder from India to the Rest of the World.
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....xport of Dehydrated Onion and Garlic Powder from India to the Rest of the World.<br>By: - YAGAY and SUN<br>Customs - Import - Export - SEZ<br>Dated:- 11-8-2026<br>Introduction India is one of the world's largest producers of onions and garlic, benefiting from diverse agro-climatic conditions, abundant agricultural resources, and a vast farming community. These crops play an important role in Indian agriculture and are cultivated extensively in states such as Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, Karnataka, Uttar Pradesh, and Tamil Nadu. While fresh onions and garlic are exported in significant quantities, the global demand for value-added products such as dehydrated onion flakes, onion powder, garlic flakes, and garlic powder has grown rapidly in recent years. Dehydrated onion and garlic powder are widely used in the food processing industry, ready-to-eat meals, instant noodles, snacks, seasoning blends, meat products, soups, sauces, pharmaceuticals, and the hospitality sector. Dehydration increases shelf life, reduces transportation costs, minimizes post-harvest losses, and ensures year-round availability. As a result, the export of dehydrated onion and garlic....
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.... products has become an attractive business opportunity for Indian entrepreneurs. India has emerged as one of the leading exporters of dehydrated onion products, especially from Gujarat, where a well-developed processing ecosystem exists. The country's competitive pricing, availability of raw materials, skilled labor, and government support through export promotion schemes have strengthened its position in international markets. Requirement of Capital, Land, Plant & Machinery Capital Requirement - The capital requirement depends upon the production capacity and level of automation. • Small-scale unit: Rs. 50 lakh-Rs. 2 crore • Medium-scale unit: Rs. 2 crore-Rs. 10 crore • Large-scale export-oriented unit: Above Rs. 10 crore The investment includes land, factory building, machinery, utilities, quality testing laboratory, working capital, and export marketing. Land Requirement - A medium-sized export-oriented dehydration unit generally requires 1-3 acres of land for: • Raw material storage • Processing area • Drying section • Packaging unit • Finished goods wareh....
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....ouse • Laboratory • Administrative office • Utilities and waste disposal Plant & Machinery - Major machinery includes: • Onion and garlic peeling machines • Washing machines • Inspection conveyors • Slicing machines • Blanching equipment (where required) • Hot air dryers or continuous belt dryers • Pulverizers • Vibro sifters • Metal detectors • Packaging machines • Nitrogen flushing system • Weighing machines • Cold storage • Boiler • Air compressor • Water treatment plant • Laboratory equipment • Forklifts and material handling equipment Modern export units also install automated grading, optical sorting, and hygienic stainless-steel processing lines complying with international food safety standards. Market Size - The global dehydrated vegetable market has witnessed consistent growth due to increasing demand for convenience foods and processed food ingredients. The global dehydrated onion and garlic ma....
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....rket is estimated to be worth several billion US dollars and is expected to grow at a healthy pace over the coming years. Major demand comes from: • Food processing companies • Fast food chains • Spice manufacturers • Ready-to-eat food manufacturers • Hotels and restaurants • Pharmaceutical companies India is among the world's leading exporters of dehydrated onions and has gradually expanded exports of garlic powder and flakes. Major importing regions include: • United States • European Union • Middle East • Southeast Asia • Japan • South Korea • Australia • Latin America Growing demand for natural ingredients and clean-label food products further enhances export opportunities for Indian manufacturers. HSN Code - Common HSN codes used for exports are: • 07122000 - Dried onions (whole, cut, sliced, broken or powdered) • 07129090 - Other dried vegetables including garlic (where applicable) • Product classification should always be verified based on the e....
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....xact product specification and importing country's customs requirements. Manufacturing Process - The manufacturing process involves several stages to ensure product quality and food safety. 1. Procurement - Fresh onions and garlic are procured directly from farmers or agricultural markets. 2. Sorting and Grading - Damaged, rotten, immature, and diseased bulbs are removed. 3. Washing - Raw materials are thoroughly washed to remove dirt, pesticides, and foreign particles. 4. Peeling - Mechanical or manual peeling removes the outer skin. 5. Slicing - Bulbs are sliced uniformly to facilitate even drying. 6. Drying - The slices are dried using hot air dryers at controlled temperatures until moisture content reaches approximately 5-7%. 7. Grinding - Dried flakes are pulverized into fine powder. 8. Sieving - Powder is sieved to obtain uniform particle size. 9. Quality Testing - The finished product is tested for: • Moisture • Microbial contamination • Colour • Aroma • Mesh size • Foreign matter • Heavy metals • Pesticide residues 10. Packaging - Prod....
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....ucts are packed in moisture-proof laminated bags or food-grade drums with nitrogen flushing where required. 11. Storage - Finished products are stored in cool, dry warehouses before export. Export Procedure and Documentation - An exporter must follow the prescribed export procedures. • Step 1 - Obtain business registration. • Step 2 - Apply for PAN. • Step 3 - Obtain GST registration. • Step 4 - Apply for Import Export Code (IEC). • Step 5 - Register with the relevant Export Promotion Council. • Step 6 - Comply with Food Safety and Standards Authority of India (FSSAI) requirements. • Step 7 - Obtain APEDA registration where applicable. • Step 8 - Receive export order. • Step 9 - Manufacture and package goods. • Step 10 - Arrange inspection and quality certification. • Step 11 - File Shipping Bill through Customs. • Step 12 - Complete customs clearance. • Step 13 - Ship the goods. • Step 14 - Receive export payment through authorized banking channels. Important Export Documents • Co....
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....mmercial Invoice • Packing List • Shipping Bill • Bill of Lading/Airway Bill • Certificate of Origin • Phytosanitary Certificate (if required) • Fumigation Certificate • Insurance Certificate • Letter of Credit or Purchase Order • Export Declaration • GST Invoice • Inspection Certificate • APEDA Registration Certificate • IEC Export Destinations - Major export destinations include: • United States • Germany • United Kingdom • Netherlands • France • Canada • Australia • United Arab Emirates • Saudi Arabia • Kuwait • Qatar • Oman • Japan • South Korea • Malaysia • Singapore • Indonesia • Vietnam • Brazil • South Africa These countries import dehydrated onion and garlic products for use in food manufacturing and retail markets. Export Promotion Schemes - ....
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....The Government of India offers several schemes to promote exports. S. No. Export Promotion Scheme Purpose / Benefit 1 Export Promotion Capital Goods (EPCG) Scheme Permits import of capital goods at concessional customs duty, subject to the fulfilment of prescribed export obligations. 2 Advance Authorisation (AA) Scheme Allows duty-free import of inputs required for the manufacture of export products. 3 Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme Refunds embedded taxes and duties that are not refunded under any other mechanism, thereby enhancing the competitiveness of Indian exports. 4 Duty Drawback Scheme Provides refund of customs and certain other duties paid on imported inputs used in the production of exported goods. 5 Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme for MSMEs Supports entrepreneurship development and capacity building, particularly for eligible MSMEs, through training and financial assistance. 6 Market Development Assistance (MDA/MDI) Scheme Provides financial assistance for participation in international trade fairs, exhibitions, buyer-seller meets, a....
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....nd other export promotion activities. 7 Market Access Initiative (MAI) Scheme Assists exporters in market research, branding, product promotion, and development of overseas markets. 8 Transport Subsidy Scheme Provides transportation cost assistance to eligible exporters located in specified regions, subject to applicable government policies. 9 Export Credit Guarantee Corporation (ECGC) Offers insurance protection against commercial and political risks associated with international trade, thereby facilitating export finance. 10 GST Refund Enables exporters to claim refunds of eligible Input Tax Credit (ITC) and GST paid on inputs and input services used in exported goods, in accordance with GST provisions. Export Performance During the Last Three Years - India has maintained a strong position in exports of dehydrated onion products, although export values have fluctuated due to changes in onion production, domestic availability, global prices, logistics costs, and demand in international markets. Over the last three years: • Export demand remained robust from North America, Europe, the Middle East, and Asia. • Value-ad....
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....ded onion products continued to perform better than bulk fresh onion exports because of longer shelf life and lower freight costs. • Garlic powder exports also expanded gradually with rising demand from processed food manufacturers. • The industry benefited from improvements in processing technology, better quality standards, and wider market access. While year-to-year export earnings may vary due to weather conditions and crop output, the long-term trend indicates sustained international demand for Indian dehydrated onion and garlic products. Export Finance - Export finance plays an important role in supporting exporters. Pre-shipment Finance - Also called packing credit, this finance is provided for: • Purchase of raw materials • Processing • Packaging • Transportation • Manufacturing expenses Post-shipment Finance - Available after shipment to bridge the period between shipment and receipt of export payment. Banks provide various facilities including: • Packing Credit • Export Bills Discounting • Letter of Credit Negotiation •....
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.... Bank Guarantees • Export Factoring • Working Capital Loans • Foreign Currency Loans The ECGC also supports banks by providing insurance cover for export credit. Export Promotion Councils and Government Initiatives - Several institutions promote exports of dehydrated food products. APEDA - The Agricultural and Processed Food Products Export Development Authority promotes exports through: • Infrastructure development • Quality certification • Market intelligence • International exhibitions • Export promotion programs DGFT - The Directorate General of Foreign Trade formulates export policies and administers export incentive schemes. MSME Ministry - Supports technology upgradation, skill development, and credit assistance. Agricultural Universities - Provide improved varieties, post-harvest technologies, and research support. Government Initiatives - Important initiatives include: • Make in India • PM Formalisation of Micro Food Processing Enterprises (PMFME) • Production-linked support for food processing infrastructure in....
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.... relevant segments • Cold chain development • Food parks • Digital export promotion • Single-window export facilitation • Quality certification assistance • Testing laboratory development These initiatives encourage value addition and increase India's competitiveness in global agricultural exports. Challenges and Bottlenecks - Despite significant opportunities, exporters face several challenges. Raw Material Price Fluctuation - Seasonal variation causes sharp fluctuations in onion and garlic prices. Climate Risks - Unseasonal rains, droughts, and floods affect production. Quality Compliance - Export markets require strict compliance with: • HACCP • ISO 22000 • BRCGS • Residue limits • Traceability systems High Logistics Cost - Freight charges and container shortages increase export costs. Competition - China, Egypt, and other exporting countries offer strong competition. Exchange Rate Volatility - Currency fluctuations affect export profitability. Infrastructure Gaps - Many small processors lack: •....
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.... Modern drying technology • Testing laboratories • Cold storage • Efficient logistics Non-Tariff Barriers - Different countries impose varying sanitary and phytosanitary standards, increasing compliance costs. Way Forward - India can further strengthen its global position by adopting the following measures: • Promote contract farming for assured quality raw materials. • Increase mechanization and automation in processing plants. • Invest in energy-efficient dehydration technologies. • Develop internationally accredited testing laboratories. • Encourage organic onion and garlic cultivation. • Expand exports to emerging markets in Africa, Latin America, and Eastern Europe. • Strengthen branding of Indian dehydrated food products. • Improve cold chain and logistics infrastructure. • Enhance farmer awareness regarding Good Agricultural Practices (GAP). • Increase participation in international food exhibitions and buyer-seller meets. • Encourage research and development for improved processing technol....
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....ogies. • Promote sustainable packaging and environmentally friendly production practices. These measures will improve productivity, reduce costs, and enhance India's competitiveness in international markets. Conclusion The export of dehydrated onion and garlic powder represents a promising opportunity for India to increase agricultural value addition, reduce post-harvest losses, and generate higher export earnings. With abundant raw material availability, competitive production costs, an established processing industry, and growing global demand for convenience foods, India enjoys a significant comparative advantage in this sector. Government initiatives, export promotion schemes, improved infrastructure, and supportive financial institutions have further strengthened the industry's growth potential. Nevertheless, maintaining consistent quality, complying with international food safety standards, ensuring traceability, reducing logistics costs, and expanding into new markets remain essential for sustained export growth. As consumers worldwide increasingly prefer processed, natural, and shelf-stable food ingredients, the demand for dehydrated onio....
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....n and garlic products is expected to continue rising. By embracing technological innovation, strengthening quality assurance systems, investing in modern processing facilities, and building strong global brands, Indian exporters can further consolidate the country's position as a reliable supplier in the international market. With coordinated efforts from farmers, processors, exporters, financial institutions, and government agencies, the dehydrated onion and garlic export industry can make a substantial contribution to India's agricultural exports, employment generation, rural development, and foreign exchange earnings in the years ahead. *** Annexure - 1 Varieties of Onions and Garlic Used for Dehydration and Powder Production. The quality of dehydrated onion and garlic products largely depends on the variety of raw material used. Varieties selected for dehydration should have high total soluble solids (TSS), low moisture content, high dry matter, good pungency, uniform bulb size, white or light-colored flesh (for onions), and good storage life. These characteristics improve processing efficiency, product yield, flavor, and shelf life. A. Onion Varieties Us....
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....ed for Dehydration and Powder Production Variety Developed By Characteristics Suitability Bhima Shweta ICAR-DOGR White bulbs, high dry matter, good storage quality Excellent for dehydration, flakes, granules, and powder Bhima Shubhra ICAR-DOGR White onion with high Total Soluble Solids (TSS), uniform bulbs Highly suitable for dehydration and onion powder Pusa White Round IARI, New Delhi Medium-sized white bulbs with good pungency Suitable for onion flakes and powder Agrifound White ICAR-DOGR High yield, white bulbs, good dry matter content Preferred for dehydration industries NHRDF White Onion-1 NHRDF High dry matter and storage life Suitable for flakes and powder NHRDF White Onion-2 NHRDF Uniform bulb size and high processing recovery Suitable for export-quality dehydrated products Udaipur White Rajasthan High solid content and pungency Used for dehydration and processing Pusa Madhavi IARI Good storage and processing characteristics Suitable for powder production Desirable Characteristics of Onion Varieties for Dehydration • White bulb color (preferred in exp....
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....ort markets) • High dry matter content (18-22%) • Total Soluble Solids (TSS) above 16 Brix • Strong pungency and aroma • Low moisture content • Uniform bulb size • Long storage life • Low reducing sugar content to minimize browning during processing B. Garlic Varieties Used for Dehydration and Powder Production Variety Developed By Characteristics Suitability Yamuna Safed (G-1) ICAR-DOGR Large bulbs, high allicin content, good pungency Excellent for dehydration and powder Yamuna Safed-2 (G-50) ICAR-DOGR Large cloves, high yield, good storage Suitable for garlic flakes and powder Yamuna Safed-3 (G-282) ICAR-DOGR High yield and good processing recovery Suitable for dehydration Yamuna Safed-4 (G-323) ICAR-DOGR Uniform bulbs with high dry matter Suitable for export-quality garlic powder Agrifound White ICAR-DOGR High yield and white cloves Widely used for processing Ooty-1 TNAU Good quality bulbs and high pungency Suitable for garlic powder Godavari Garlic Regional variety High flavor and aroma Used....
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.... in dehydration industry Desirable Characteristics of Garlic Varieties for Processing • High dry matter content (35-40%) • High allicin content for strong flavor • Large, uniform cloves • White-colored cloves • Good storage life • Low moisture content • High recovery after dehydration Major Onion-Producing States Supplying the Dehydration Industry State Major Varieties Used Gujarat Bhima Shweta, Agrifound White, NHRDF White Maharashtra Bhima Shubhra, Agrifound White Madhya Pradesh White onion varieties Rajasthan Udaipur White Karnataka White processing varieties Major Garlic-Producing States • Madhya Pradesh • Rajasthan • Gujarat • Uttar Pradesh • Punjab • Haryana Preferred Varieties for Export-Oriented Dehydration Units Onion • Bhima Shweta • Bhima Shubhra • Agrifound White • NHRDF White Onion-1 • NHRDF White Onion-2 • Pusa White Round Garlic • Yamuna Safed (G-1) â....
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....€¢ Yamuna Safed-2 (G-50) • Yamuna Safed-3 (G-282) • Yamuna Safed-4 (G-323) • Agrifound White These varieties are preferred because they provide higher dehydration recovery, superior flavor, better color retention, longer shelf life, and consistent quality, making them suitable for the manufacture and export of dehydrated onion flakes, granules, onion powder, garlic flakes, and garlic powder. *** =============<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....