§1What this business is
Fresh ginger is washed, partly peeled, treated in lime water, sliced and dried in a cabinet dryer at about 60°C (yield about 25%). Part of the dry ginger is ground and steam-distilled for ginger oil, used to flavour soft drinks and sweets and in medicines.
Capacity: 15 tonnes of dehydrated ginger and 5 tonnes of ginger oil a year at full capacity (20 tonnes; 60% in year 1).
§2Is it right for you?
Who it is for
Someone in a ginger-growing belt (the report mentions the north-east) with access to farmers.
Who it is not for
Someone without an assured ginger supply or an oil buyer.
Advantages
- Adds value to a seasonal crop
- Dry ginger stores for months
- Ginger oil is high value
- Demand from food, drinks and pharma
Drawbacks
- Only 25% weight comes back as dry ginger
- Fresh ginger prices swing widely
- Oil distillation needs steam and skill
- The report's 5 tonnes of oil from 50 tonnes of ginger is very optimistic — check yield with an expert
Skills you need
- Drying and moisture control
- Steam distillation
- Ginger procurement at harvest
- Selling to spice and flavour buyers
Why difficulty 3/5: Two processes and a volatile raw material.
§3Market
Who buys
- Spice processors and traders
- Soft-drink and confectionery makers (ginger oil)
- Pharmaceutical companies
- Households via retailers
How it sells
- Distributors, wholesalers and retailers (report)
- Tie-ups with buying houses (report)
- Direct sale to flavour and pharma buyers
Good to know
- The report says ginger offers wide scope for commercial processing in the north-eastern region.
- It says exports of ginger products have increased manifold in recent times.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Solar cabinet dryer, 200 kg | 1 | — |
| Skin peeling machine | 1 | — |
| Steam distillation unit | 2 | — |
| Baby boiler | 1 | — |
| Steam-jacketed kettle | 1 | — |
| Aluminium-top working table, sealing machine, 2 gas burners | 1 set | — |
| Main machines above together | 1 lot | ₹12,50,000 |
| Washing tanks, SS utensils, scales, trays, tubs, lab equipment | 1 lot | ₹85,000 |
| Miscellaneous equipment | 1 lot | ₹50,000 |
From: PMEGP sample project report — Ginger Processing (prepared by Udyami/Samadhan)
- Green (fresh) ginger50 tonnes a year at ₹45,000 a tonne at full capacity
- Citric acidconsumable
- Packaging materialpolythene bags for dry ginger
From: PMEGP sample project report — Ginger Processing (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- FSSAI licence (named in the report)
- Udyam registration
- GST registration
- NOC from the State Pollution Control Board (named in the report)
- Boiler registration if a steam boiler is used
- AGMARK/BIS (IS 1908) grading optional
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- AIFCentralUnclear3% interest subvention, up to ₹2 crore
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP and PMFME fit; AIF for post-harvest processing; MUDRA and CGTMSE for credit.
§7Money
How the investment is worked out: Samadhan report: building/shed 1,200 sq ft ₹3.90 L, plant & machinery ₹13.85 L, furniture ₹0.58 L, pre-operative ₹0.60 L, working capital ₹6.08 L = ₹25.00 L. Land 2,000 sq ft owned.
Working capital: Working capital ₹6.08 L (bank ₹5.47 L); 30 days' raw material and 30 days' finished stock.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Spices Board India
- HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Ginger price spikes
- Low oil yield
- Mould in stored ginger
- Quality rejection
§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 ginger processing (dry ginger and ginger oil) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (FSSAI licence (named in the report), Udyam 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 Ginger Processing (Dry Ginger and Ginger Oil)?
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.