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Complete Guide to Spice Manufacturing Plant Setup in India (2026): Cost, License & Machinery
Starting a spice manufacturing plant set up in India is a great business idea in 2026. India is known as the “Land of Spices.” From turmeric and chilli to cumin and coriander, Indian spices are famous all over the world.
If you want to start your own spice business but don’t know where to begin, this guide will help you. Let’s begin step by step.
What is a Spice Manufacturing Plant?
A spice manufacturing plant set up is a place where raw spices like chilli, turmeric, coriander, and cumin are:
Cleaned
Dried
Ground into powder
Packed properly
Sold in the market
For example:
Turmeric sticks → cleaned → dried → ground → packed as turmeric powder.
Whole chilli → cleaned → crushed → packed as chilli powder.
It is not just grinding. It is a proper system that includes machines, quality testing, and legal approvals.
Why Start a Spice Manufacturing Plant in India?
India is one of the biggest producers and exporters of spices in the world. Indian spices are sold in:
USA
UAE
UK
Europe
Middle East
People trust Indian spices because of their strong flavor and quality.
So, starting a spice business in 2026 is a smart idea.
Step-by-Step Guide for Spice Manufacturing Plant Set Up
Step 1: Decide Your Business Size
There are three types of plants:
Small Scale (Home-based or small factory)
Medium Scale
Large Scale (Export level)
If you are starting new, begin with small or medium.
Step 2: Land and Location
You need:
Industrial land
Proper electricity
Water connection
Good road access
Most states require your plant to be in an industrial area.
For example, if your plant is in Telangana, you must follow rules of the Telangana State Pollution Control Board.
If you are in Kerala, you must get Pollution NOC from Kerala State Pollution Control Board (Pollution NOC Kerala SPCB).
Step 3: Machines Required
Here are the basic machines:
Cleaning Machine – removes dust and stones
Dryer Machine – dries spices properly
Grinding Machine – makes powder
Pulverizer – fine grinding
Sieving Machine – separates fine powder
Blending Machine – mixes spices (like garam masala)
Packaging Machine – packs in pouches
Approximate Machinery Cost (2026):
Small plant: ₹5–10 lakh
Medium plant: ₹15–30 lakh
Large plant: ₹50 lakh+
The cost depends on automation and capacity.
Step 4: Total Investment Cost
Here is a simple breakdown:
Expense | Approx Cost |
Land/ Rent | ₹2–10 lakh |
Machinery | ₹5–30 lakh |
Labor | ₹50,000–2 lakh/month |
Electricity setup | ₹1–3 lakh |
License & approvals | ₹50,000–2 lakh |
Raw materials | ₹2–5 lakh |
Small plant total investment: ₹10–20 lakh
Medium plant: ₹25–60 lakh
Large plant: ₹1 crore+
Licenses Required for Spice Manufacturing Plant
Running a spice plant without licenses is illegal. You must take proper approvals.
1. FSSAI License
Food Safety and Standards Authority of India license is compulsory. Without FSSAI, you cannot sell food products.
2. GST Registration
Required for selling products in the market.
3. MSME Registration
Helpful for getting government benefits.
4. Trade License
From local municipal authority.
5. Factory License
Required if you employ workers.
6. Pollution Control NOC
Very important.
Every spice manufacturing plant must take:
Consent to Establish (CTE)
Consent to Operate (CTO)
If your plant is in Telangana, you must apply to the Telangana State Pollution Control Board.
If your plant is in Kerala, you must take Pollution NOC Kerala SPCB from Kerala State Pollution Control Board.
These boards check:
Dust control system
Waste disposal
Noise control
Water discharge system
If pollution rules are not followed, heavy fines can be imposed.
Pollution Control Rules for Spice Plant
Spice grinding creates dust. Dust can cause:
Air pollution
Breathing problems
Worker health issues
So you must install:
Dust collectors
Air filters
Proper ventilation
Waste collection system
Pollution boards check your plant before giving approval.
Waste Management & Waste Export Compliance
Spice factories create:
Dust waste
Broken raw material
Packaging waste
You must:
Dispose waste safely
Follow local waste management rules
Not throw waste in open areas
If you export spices, you must follow waste export compliance rules.
Waste export compliance means:
Following environmental laws
Making sure no harmful waste is exported illegally
Proper documentation for international shipment
If waste export rules are not followed, export license can be cancelled.
How to Export Spices from India?
To export spices:
Get Import Export Code (IEC)
Register with Spice Board of India
Follow quality standards
Maintain hygiene
Follow waste export compliance rules
Export market gives high profit but requires strict quality control.
Manpower Required
Small plant needs:
2–5 workers
1 machine operator
1 quality checker
Medium plant:
10–20 workers
Training workers is important for hygiene and safety.
Profit Margin in Spice Business
Profit depends on:
Brand value
Packaging
Marketing
Quality
Average profit margin: 10% to 25%
If you build your own brand and sell online, profit can increase.
Common Mistakes to Avoid
Starting without pollution NOC
Ignoring dust control
Using poor quality raw material
Not testing products
Selling without FSSAI license
Always follow legal rules to avoid penalties.
Future of Spice Manufacturing in 2026
The demand for:
Organic spices
Chemical-free products
Export quality spices
is increasing.
If you follow:
Food safety rules
Pollution control norms
Waste export compliance
Proper branding
Your spice manufacturing plant set up can become a successful long-term business.
Frequently Asked Questions (FAQ)
1. How much money is required to start a spice manufacturing plant in India?
A small plant can start from ₹10–20 lakh.
2. Is pollution NOC compulsory?
Yes. You must take Consent to Establish and Consent to Operate from your state pollution board like Telangana State Pollution Control Board or Pollution NOC Kerala SPCB.
3. Can I start spice business from home?
Yes, on small scale. But for large production, factory license and pollution approval are required.
4. Which machine is most important?
Grinding machine and pulverizer are most important.
5. Is spice business profitable?
Yes. With good branding and quality, it can give 10–25% profit margin.
6. What is waste export compliance?
It means following environmental and export laws while exporting spices and managing waste properly.
7. How long does it take to start the plant?
Usually 2–6 months including licenses and machinery installation.
Final Words
Starting a spice manufacturing plant set up in India in 2026 is a smart and profitable business idea. But success comes only when:
You follow food safety rules
Take proper pollution approvals
Maintain hygiene
Follow waste export compliance
Focus on quality
If everything is done properly, your small spice factory can grow into a big brand in the future.
Author Profile
Upendra Sharma
Environmental & Industrial Compliance Consultant
Upendra Sharma helps businesses in setting up manufacturing plants across India. He specializes in pollution control approvals, factory licensing, and environmental compliance including Telangana State Pollution Control Board approvals, Pollution NOC Kerala SPCB, and waste export compliance support. With years of experience in industrial consulting, he guides entrepreneurs in starting legal, safe, and profitable businesses.
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