How to Start Organic Food Store Business in India

Organic food has made a mark all over the world and India is one of the places where it is gradually business traction. It is also one of the viable businesses that a small business can afford to start with a little financial push. This is the reason why the Government of India has specially designed schemes like UDYOG Aadhar to help small businesses grow and become globally competitive.  

In this article, we are going to find out how the numerous small traders can start an organic food store business in India. 

Licensing and Permits 

The organic food sector is highly regulated and requires a long list of licenses and permits. This is generally issued by the central government, the state governments, and the local authorities. The Organic Trade Association is the trade body of organic food businessmen and traders and one has to get registered with them first. Once that is done, to make trade possible between states the formalities about in-state licenses and permits have to be completed. Filing for the EIN or Employee Identification Number has to be done through the IRS website. The operating structure of the company has to be validated. That would mean the business has to certify what kind of a company it is: A partnership firm, a private limited company, and the likes. Finally, open a company bank account. 

Location of the Store 

The location of the store must be selected in a place where there is a possibility of a large footfall, preferably inside a market or mall. This is to ensure that the branding is visible. Moreover, since the organic food market in India is still at its nascent stage, there is a general lack of awareness amongst most of us. Hence, the location of the store should be in a place where it is visible. 

There are a couple of things that should be kept in mind while selecting the store: 

  • Security¬†
  • Accessibility¬†
  • Less competition in the same sector¬†
  • Greater Visibility¬†
  • Cost-Effective¬†

Since setting up a store involves a cost, there are numerous business loan and MSME loan available in the market at competitive interest rates that can be availed. 

Hire Employees 

The store would need employees and you have to be hiring them. However, it just doesn‚Äôt stop there. Once you have hired them, they need to be trained in the subject. No customer would like to talk to a sales personnel who have no idea what the product is. A well-informed employee also reflects well on the company. 

Enhance Consumer Experience 

The sole aim of the business has to enhance the consumer experience through great customer service, quality products, after-sales services if any, and any other customer-centric activity. At the end of the day, the consumer needs to be made aware that they are special and how organic food helps them keep fit and healthy. 


Setting up the business, like every other business, requires an upfront investment. This may vary from city to city. A business loan comes in handy during such times. Starting a business using savings is fraught with danger and is also not a good business move. To augment the process, the small business can avail loans from the various public and private banks as well as NBFCs under the various Government schemes. There are schemes specially designed for women entrepreneurs and entrepreneurs from the backward classes.  

Lastly, starting an organic food business has its unique challenges but with greater business loan opportunities, this sector is finally opening up and seeing greater expansion.

Rashmi Sharma

Rashmi with you to ensure you and your business future. She also emphasizes the need to adjust investment plans as your goals and needs change.