§1What this business is
Onions are washed, hand-peeled, sliced and dried in shielded driers to about 10% moisture, then finished in bin driers at low temperature. Dried flakes are graded for colour and packed; kibbled onion and onion powder are made from the flakes. Garlic bulbs are cracked, the cloves graded, flaked or chopped under running water, dried in the same way, sorted to remove dark or burnt pieces and packed; broken pieces become garlic grits. Buyers are spice and food makers, snack and soup makers, hotels and exporters.
Capacity: 300 MT a year.
§2Is it right for you?
Who it is for
Someone in an onion or garlic growing belt with access to food-processing or export buyers.
Who it is not for
Someone far from growing areas or without bulk buyers lined up.
Advantages
- Turns a perishable crop into a product that keeps for months
- Several products from one line: flakes, kibbled, powder, grits
- Food makers and exporters buy in bulk
Drawbacks
- Fresh onion prices swing sharply with the season
- Peeling and sorting need many workers
- Colour and moisture must meet buyers' specifications
- Large water use and wet waste
Skills you need
- Buying onion and garlic at harvest prices
- Drier control for moisture and colour
- Food safety and hygiene
- Selling to food makers and exporters
Why difficulty 3/5: Seasonal raw material, labour-heavy peeling and strict buyer specifications.
§3Market
Who buys
- Spice, masala and seasoning makers
- Snack, soup and ready-meal makers
- Hotels, caterers and food exporters
How it sells
- Direct supply to food makers against specifications
- Exporters and merchant traders
- Bulk packs to HoReCa distributors
Good to know
- Products in the profile: onion flakes, kibbled onion, onion powder, garlic flakes and garlic grits.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Onion bulb grader | 1 | — |
| Abrasive peeler | 1 | — |
| Onion washing machine | 1 | — |
| Onion rotary slicer | 1 | — |
| Shield driers | 4 | — |
| Bin driers | 14 | — |
| Kibbling machine | 1 | — |
| Garlic bulb cracker | 1 | — |
| Garlic bulb and clove grader | 1 | — |
| Garlic flaker | 1 | — |
| Garlic chopper | 1 | — |
| Garlic skin removing machine | 2 | — |
From: NSIC project profile — Dehydrated Onion and Garlic — private guide — confirm locally
- Fresh onions
- Fresh garlic
- Chemicals (as used in processing)
From: NSIC project profile — Dehydrated Onion and Garlic — private guide — confirm locally
§5Licences & registration
- Udyam registration
- GST registration
- FSSAI licence or registration
- Consent to establish and operate from the State Pollution Control Board (wash water and peel waste)
- Factory licence if your worker count crosses the Factories Act limit
- APEDA registration (RCMC) if you export
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP fits (₹35.1 lakh, under the ₹50 lakh manufacturing limit); PMFME supports micro food processing units; CGTMSE for a loan without collateral; Stand-Up India for SC/ST and women founders.
§7Money
How the investment is worked out: The NSIC profile prints one figure for machinery and equipment plus 3 months' working capital (raw material, utilities and salary): ₹35.1 lakh. It gives no split between the two, and land and building are not included.
Working capital: Working capital for 3 months (raw material, utilities and salary) is inside the ₹35.1 lakh total; the profile prints no separate figure.
Year not printed on the NSIC profile (an older NSIC Training-cum-Incubation Centre sheet) — check current machinery and material prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: APEDA
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Raw onion price spikes
- Browning or high moisture leading to rejection
- Insect and moisture damage in storage
- Microbial limits set by export buyers
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working dehydrated onion and garlic unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Dehydrated Onion and Garlic?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.