Singapore imports a wide range of products, both industrial & agricultural, from different nations, as it suffers from a scarcity of natural resources. The trade relationship between India & Singapore has reached a new height in the past few years, with India contributing significantly to their agricultural imports. Presently, Singapore imports about 80% of its total food consumption, catering to the need of four million people residing nationwide. Another commodity that is prominently traded between these two nations is freshly-cut flowers of different varieties. Furthermore, the export of flowers to Singapore helps strengthen its service & hospitality sector. This article will unfold how to export flowers from India to Singapore & how it can be profitable for entrepreneurs.
Why Singapore is an Ultimate Destination to Export Flowers?
Singapore has the most advanced retail market in Southeast Asia, making it an ultimate export avenue. The wet market in this nation is dominated by vegetables, fruits, flowers, & meat. The standard of living of people in Singapore is much better than in other South Asian Countries. The growing economy is allowing people to earn & save more.
In addition to that, since Singapore is a tourist-oriented nation, it has a large number of restaurants, hotels, resorts. Additionally, all these avenues seek freshly-cut flowers to maintain a lively ambiance. Therefore, the demand for flowers in this country is significantly higher than in other nations.
Flowers production seeks a lot of hardship & the right technique. Since Singapore suffers from poor usage efficiency, they heavily rely on India to cater to the rising demand for flowers.
Current Status on Growth of Floriculture in India
Floriculture is a profitable business in India. Further, it provides considerable domestic & export potential since Indian flowers are renowned all around the globe. Demand for dried & fresh flowers is on the higher side because they serve different purposes. Furthermore, according to some studies, the worldwide market for flowers surpasses USD 40 billion & keeps on growing at a CAGR (Compound Annual Growth Rate) of 10% to 12%.
Furthermore, the prominent importers of Indian flowers are South Korea, United States, Singapore, & Western Europe. The nations like Thailand, Indonesia, & Malaysia are also coming up as consumers. Moreover, considering the global production of flowers, the Netherland secures the first position with 56% of the market share, followed by Columbia & Kenya.
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The table below manifests the significant exporters & importers of the flowers around the globe:-
|Sl No||Major Importers||Market Share (%)||Major Exporters||Market Share (%)|
Overview on Flower Exports from India
Floriculture is a vital branch of horticulture. Technically, it is an extensive term that entails the cultivation & trade of different type of products, including;
- Cut flowers
- Flowering / Ornamental plants
- Bulbs / Tubers
Furthermore, when it comes to the exportation of flowers from the nation like India, products are clubbed into four primary categories & their respective market share is as follows;
- Cut flowers, both fresh & dried – 72%
- Rooted cuttings & spawn – 9.92%
- Foliage & plant parts – 17.16%
- Bulbs, roots, & chicory – 1.05%
How to Export Flowers to Singapore from India?
The following section entails the process that will help you export flowers to Singapore in a legitimate way:
Step1: Check for the Demand
First, the business owners need to dig into the market to check what types of flowers are in demand. To better understand the market, an individual must check the past sales, communicate with the Subject matter expert, & connect with the overseas buyers.
Step 2: Register the Company
After deciding on what product to export, the business owner should proceed further to register the company. The business owner can serve this purpose by approaching the right authority & selecting the right business structure.
Step 3: Avail Licenses -Import Export Code*
After registering the firm, the business owner has to visit the online portal of the Directorate-General of Foreign Trade (aka DGFT) to avail of the import-export license (IEC*). The IEC is a ten digit numeric code that helps the individual executes the export & import activities.
Further, to avail benefits of government-based schemes, the business owner will have to register the company with Export Promotion Council & the Commodity Boards.
Step 4: Setup a Business Supply Chain
After arranging the valid documentation, you can start locating the vendors & suppliers to set up a business supply chain.
Step 5: Suitable Shipping Agency
The last step is to locate legit agency that can help you met the order in a time. Further, select shipping services that are suitable for the export of flowers. If they are unable to render refrigerated cartons’ services, it’s better to stay away from them.
Documents to be Arranged for Exporting Flowers to Singapore
- Company Incorporation Certificate
- Company PAN
- Further, ID and Address proof of all the directors or partners
- Import Export Code (IEC)
- Certificate of Origin
- Purchase Order
- Packing List
- Bank account statement and other financial details
- GST and other tax registration certificates.
- Quality Assurance Certificate
What are the Steps to Avail IEC Online?
Step 1: Use the given URL to visit the DGFT portal. https://dgft.gov.in/CP/
Step 2: Click on the “Apply for IEC” tab & fill up the registration details.
Step 3: After filling in the said information, click on the Send OTP button. Go to the home page then select the “Apply IEC button again. Complete the login formalities.
Step 4: After login, fill up the IEC registration form with the relevant information. While providing the banking detail, make sure to upload a canceled checkbook & select the “Save & Next” button.
Step 5: Select the correct sectors of operations & then choose the Acceptance of Undertaking. Click “Save & Next” button to proceed further.
Step 6: click on the “Sign” button located at the bottom section of the page.
Step 7: Submit the online fee & take the printout of the receipt.
Singapore has an abundance of technological resources, but, unfortunately, the country doesn’t have enough land for cultivation. Even with the best of effort, the land crisis in the country is rising every passing year. Their dependence on export is inevitable, & it is increasing in tandem with the rising demand. With that being said, exportation is the only way for them to curb the problems. In light of this, it seems that their trade relationship with India will improve over time.
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