Today, we will introduce you to how to start a fertilizer business. In this post we will cover subsidy, organic fertilizer shop business plan, permission and licence. While talking about fertilizer organic fertilizer is making a good impact and today everybody wants to eat chemical free fruit, grain and vegetables.
How to start fertilizer business
Fertilizer business plan - Before starting a fertilizer company you should do a survey in your area and identify the gap in services. Make a list of unprovided services and start collecting all the material which are not provided in your area. Remember, good market research always plays a key role before starting any business.
- Fertilizer shop business plan - Before starting a fertilizer shop you should wait for six months.
- In this period you can search for a shop in a better location for your shop.
- You should meet with other fertilizer wholesalers and try to identify from where they are picking their materials.
How to open fertilizer shop
- If you are thinking how to open fertilizer shop in Karnataka, Bihar or Telangana, you should prepare a business plan that is almost the same for all the states.
- You just need to check your survey strategies. First select 4 to 5 fertilizer shops in your area then continuously purchase fertilizers for 6 months this will give you a price idea of the product.
- You should use these fertilizers at your farm if you don't have a farm then try to use it in your relatives farm or at your garden area so that you can check the fertilizer quality.
- Six months are good enough to check the correct rates of the fertilizer this time is to identify and pick the correct wholesaler and if you are planning to open wholesale shop then also you need to collect precious information from various wholesaler and for that you need to become their regular customer at least for 6 months so that you can build good relationship to get easy information.
- You can also use the wholesale materials later in your shop. Moreover, during this period you can search for a good, reasonable and prime location for your fertilizer shop.
Permission letter from municipality
Municipality permission is necessary to open a fertilizer shop. You need to report at your local Municipality office.
After getting local government permission. You need to approach for specific state government permission which might have some regulations related licensing issues and density of more similar business.
How to apply for fertilizer license in Karnataka
Every person including an importer, wholesaler, pool handling agency, retail dealer carrying on the business of selling fertilizer shall make a memorandum of intimation to the notify Authority. Interested people who are living in Karnataka can visit the site karnatak.gov.in after visiting the site you need to generate khajane to challan link where you have to fill your personal details then select the government and fill in other information.
After submission of documents and if it gets acceptable from the licensing authority it will take 16 working days to generate the license. You will get an SMS before the inspection of your fertilizer shop and the concerned jurisdiction officer will inspect the fertilizer shop.
Certifications for fertilizer
Environmental Protection Act (EPA) certification is necessary for any individual who is going to open fertilizer business and use of restricted use pesticides (RUPs) is certified under EPA as per the rules and regulations of state government. You might need state territorial certification according to your need. Pesticide Safety education programs can help you to know more details in depth. You should attend these kinds of programs which occur in almost all states. These program can help you to Collect the required information which you need. You should contact the EPA for the federal certification so that you can apply Restricted use pesticides (RUPs) in the Indian economy to meet the standards.
40 CFR Part 171 are established for handling and competency for pesticides applicators.
Fertilizer subsidy in India
Fertilizer subsidy deals with payment of the cost of imported urea (OMIFCO) or for Canalizing agencies. Under the DBT system the subsidy availability is 100%The subsidy available for imported p and K is 85% Do subsidy available for important urea is 100%
Fertilizer subsidy under the indigenous wing
- Subsidy under DBT With respect to indigenous P & K, DAP and SSP Is hundred percent under DBT system
- The subsidy of indigenous SSP fertilizer is 85% without bank guarantee and 90% with bank guarantee
How to get fertilizer shop license in Karnataka
Documents required for fertilizer license
State fertilizer wholesale license - Covering letter address to Joint director of agriculture (fertilizer and plant protection) Bangalore, head office.
- Authorized form ‘O’ with fertilizer details.
- Fee required for fertilizer license Rs 6000 khajane 2, challan
- Land details own land copies
- land detail rented/lease agreement copies
- Form A2 wholesale marketing license from the state where you want to establish your business (for other state ‘O’ forms are required)
- GST registration copy
- Manufacturing license form F - This is required for micronutrient mixtures and NPK mixture fertilizers
- For out of state manufacturing packaging and labelling details
- For organic and boy fertilizers state manufacture and registration certificate from commerce department (SSI certificate)
- Recent quality test report from government institution any ISO laboratories
- Mention details of packaging and marketing on the container back
- Permission letter from concerned panchayat, municipality BBMP
- Procedure for online application A2 licence for selling fertilizer.
Fertilizer shop license FAQ
What are the documents required for fertilizer license?
Documents required for fertilizer shop are - PAN card, bank statement, qualification proof, shop rent agreement or owner copy, fertilizer details
- Interested citizens can apply the license for retailing fertilizers with following details
- Shop details from where the fertilizer will sold
- Fertilizer details
- Documents required such as PAN card Bank statement qualification proof
- Citizens who want to apply for wholesaling fertilizer licence -
- The store from where the fertilizer will be stocked and sold
- Fertilizer details
- Uploading documents such as bank statement PAN, card qualification details etc.
Who is the license issuing authority?
Licensing authority will approve the license after verification by the concerned jurisdiction officer. Unapproved licence there will be a digital sign of licence authority.
Officer who will inspect our fertilizer shop?
a concerned jurisdiction officer will inspect the fertilizer shop. Licence holders and an inspecting officer must take a photo together with the shop.
How much amount do you need to pay for a fertilizer license?
In Karnataka fee required for fertilizer license is Rs 6000 khajane 2, challan