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Is it Possible to sell Food Grains and Edible Oil Online?

calendar07 Dec, 2020
timeReading Time: 4 Minutes
Online Selling of Food Grains and Edible Oil

As there is a rapid increase in internet usage and Smartphone usage, the Indians tend to buy online more such as groceries and other products much more often now. Therefore there is also in the rising sale of food grains and edible oil online. Both the commodities are essential to the Indian kitchen, and entrepreneurs are trying to make such products more accessible to the online shoppers. The conveniences of buying online have allowed so many online grocery stores to pop up around the country.

Status of Online Grocery Store Market in India

India’s online grocery market is booming nowadays, the more and more people are opening large e-commerce platforms and online shopping. The online grocery stores are one of the most popular segments in India’s fledgling e-commerce sector, which will be worth $100 billion by an end of 2020. 

Read our article:Everything you need to know about FoSCoS – Food Safety Compliance System

How to Set Up an Online Grocery Store?

  • Firstly, one has to identify audience, whom we can target for our products. It totally depends on what sort of an online store one wants to set up. In case we want to supply only food grains and edible oil, then we need to focus on specific clients. However, if one wants to start the online grocery store, then one must have a larger sample space to analyse.
  • After that, one has to identify and analyse what is the buying patterns of our audience/clients and note the market reaction in timely manner. Recognising and after being prepared for such trends, it will help you to get right stock goods and minimise wastage.
  • Once all these things are planned, one will establish the backend that includes setting up the warehouse. Another option would be to have partnered with suppliers and only involve in delivering products.
  • Next comes to decide how you one will make the deliveries. It needs an efficient system to ensure that business idea takes off. Since we are dealing in essential commodities, like food grains and edible oils, we must have an option of same-day delivery.
  • Once we have all this, we will have to set up a supply-chain. If we have our own an edible oil refinery or mill, you can source the materials yourself. If not, talk to experts within an industry and locate nearby suppliers to make the best edible oil or high-quality food grains.

How to Sell Food Grains & Edible oil Online in India?

  1. Firstly, one will need to register a business to sell anything online. Depending on the scale and nature of the business, one can choose from the following business structure.
    • Proprietary business
    • Partnership firm
    • Private or Public Limited Company
  2. Next, one will have to complete the PAN card application it is needed for filing IT returns.
  3. Once we have both these documents, we can apply for TAN number and complete the GST Registration.
  4. After doing this, you can open a business account at a reputable bank to make transactions.
  5. Next, you have to go through the state laws and know what other registrations and licenses are required.
  6. Once all legal formalities are completed, just design and launch the website or app after setting up the convenient payment method.

Importing Edible Oil

If one wishes to import edible oil to India from foreign edible oil refineries, you will need the following

  1. Complete registration for the business
  2. Licenses and Registrations, such as
  3. Contact customs clearance agent to arrange shipping and customs handling.
  4. After clearance, we need to undergo the FSSAI verification.
  5. After approval, one will receive the imported goods.

Legal Requirements for Selling the Food Grains and Edible Oil Online

  1. Registration of the Business
  2. Shop and Establishment Act License
  3. Food License from FSSAI:-
  4. Pollution clearance, if required
  5. Fire Department NOC for warehouse, if required
  6. Tax registrations
    • Income Tax such as PAN and TAN
    • GST (Goods and Service Tax)
    • Professional Tax if necessary
  7. Labour law Registrations
    • Employees State Insurance Registration
    • Employees Provident Fund Registration
    • Contract Labour Registration
  8. Infrastructure Licenses
  9. State-enforced Certification Marks such as;
    • AGMARK for agricultural products.
    • India Organic certification
    • Flogo for fortified foods
    • Jaivik Bharat logo for organic foods
    • Registration under Food Licensing & Registration System through FSSAI

How to Sell Food Grains and Edible Oils on Amazon?

  • To start selling your items on Amazon India, go to their Seller Signup page.
  • Click on Register button and provide all the required details, such as name, business name, address, and contact details.
  • You have to provide information regarding your bank account to complete the registration process.
  • You will then have to take mandatory Partner Quiz.
  • Once the company verifies the profile, one can start selling your items through Amazon India.

Mandatory Requirement of Following Details

Mandatory Requirement of Following Details


There has been increased in competition as several players, and international platforms within the market share $900 million are involved in the business. Presently the prediction is that an online grocery store market in India will grow by 70% CAGR and hit the valuation of $7.5 billion by the end of 2022. The entrepreneurs have two viable options as they can choose to list themselves on Amazon[1] and other such platforms, or they can also start an individual website for themselves.

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