5kg Homemade Ginger Garlic Paste for Business – Cost and Profit Calculation

If you’re searching for:

• “How to start ginger garlic paste business from home?”
• “5kg ginger garlic paste cost and profit calculation”
• “Is ginger garlic paste business profitable in India?”
• “Low investment food business idea”

Then you’re in the right place.

Ginger garlic paste is not a fancy or luxury product — it’s a daily-use essential. From small homes to big restaurants, from dhabas to catering services, almost every kitchen uses it. That’s why this product has consistent demand, repeat customers, and steady cash flow.

In this detailed guide, we’ll cover:

• Raw material cost (realistic Indian prices)
• 5kg batch production breakdown
• Packaging options & cost comparison
• Step-by-step profit calculation
• Monthly income projection
• Break-even analysis
• How to increase margins
• FSSAI and legal requirements
• Realistic challenges & solutions

Let’s start from the basics.

Why Ginger Garlic Paste is a Smart Small Business?

Before talking about profit, understand why this product works:

1. Everyday Demand

Ginger garlic paste is used in:

• Dal
• Sabzi
• Paneer dishes
• Chicken curry
• Biryani
• Street food
• Restaurant gravies

There is no season for it — it sells 12 months a year.

2. Time-Saving Product

Many households prefer ready paste because:

• Peeling garlic takes time
• Grinding daily is inconvenient
• Ready paste saves effort

3. Low Investment

You can start with ₹8,000–₹15,000.

4. Scalable

Start with 5kg per day → scale to 20kg per day.

Step 1: Raw Material Requirement for 5kg Paste

Many beginners make a mistake here. Ginger and garlic lose weight after:

• Washing
• Peeling
• Cleaning
• Removing damaged parts

To get 5kg final paste, you need approximately:

• Raw Ginger: 3kg
• Raw Garlic: 3kg

After peeling and trimming, usable weight becomes around 5kg.

Step 2: Current Wholesale Market Prices (India)

Prices change seasonally, but average mandi rates:

• Ginger: ₹55–₹70 per kg
• Garlic: ₹100–₹140 per kg

For calculation, we’ll use:

• Ginger = ₹60/kg
• Garlic = ₹120/kg

Raw Material Cost Calculation

So, base ingredient cost = ₹540

Step 3: Additional Ingredients Cost

For better texture and shelf life:

• Salt – 100g = ₹5
• Refined oil (100–150ml) = ₹20
• Vinegar / citric acid (optional) = ₹10

Total additional cost = ₹35

Step 4: Electricity Cost

Heavy-duty mixer grinder usage per batch:

Approximate electricity expense = ₹15–₹25

We calculate: ₹20

Step 5: Labor Cost

If you hire someone for peeling:

• 6kg peeling labor cost = ₹100–₹150

We calculate: ₹120

If family members help → this becomes profit.

Step 6: Packaging Cost Options

Packaging impacts profit margin.

Option A: 1kg Food-Grade Pouch (Retail Friendly)

• Pouch cost: ₹8 × 5 = ₹40
• Label cost: ₹3 × 5 = ₹15

Total = ₹55

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Option B: 5kg Bucket (Restaurant Supply)

• Food-grade bucket: ₹75

Label minimal or none.

Total = ₹75

For better profit and branding, 1kg pouch packaging works best.

Step 7: Total Production Cost (5kg Batch)

Let’s combine everything:

Expense	Cost
Raw Material	₹540
Extra Ingredients	₹35
Electricity	₹20
Labor	₹120
Packaging	₹55
Total Cost	₹770

Total investment per 5kg batch = ₹770

Cost Per Kg Calculation

₹770 ÷ 5kg = ₹154 per kg

Your production cost per kg = ₹154

Market Selling Price Analysis

Local market prices:

• Loose paste (unbranded): ₹170–₹190 per kg
• Local packaged brand: ₹190–₹220 per kg
• Premium brands: ₹240–₹280 per kg

Big brands like Everest and Mother's Recipe charge higher due to brand value and preservatives.

As a small business, competitive pricing is better.

Selling Price Scenarios

Scenario 1: Selling at ₹190 per kg

Revenue = 5 × ₹190 = ₹950
Profit = ₹950 – ₹770 = ₹180

Scenario 2: Selling at ₹210 per kg

Revenue = ₹1050
Profit = ₹280 per batch

Scenario 3: Selling at ₹220 per kg

Revenue = ₹1100
Profit = ₹330 per batch

But pricing must match local competition.

Monthly Income Projection

Assume:

Production = 5kg daily
Working days = 25 days

Total monthly production = 125kg

If selling at ₹210/kg:

Revenue = 125 × 210 = ₹26,250
Cost = 125 × 154 = ₹19,250

Monthly profit ≈ ₹7,000

If You Produce 10kg Per Day

Monthly production = 250kg

Revenue = 250 × 210 = ₹52,500
Cost = 250 × 154 = ₹38,500

Monthly profit ≈ ₹14,000

Now it becomes serious income.

Break-Even Analysis

Initial equipment investment:

• Heavy mixer grinder = ₹4,000
• Weighing machine = ₹800
• Stainless steel utensils = ₹1,500
• Basic tools & trays = ₹1,500

Total setup cost ≈ ₹8,000–₹10,000

If monthly profit is ₹7,000:

Break-even time = 1–1.5 months

After that, mostly net earnings.

How to Increase Profit Margin?

1. Buy Direct from Mandi

If you reduce raw material cost by ₹10 per kg:

Your profit increases by ₹50 per batch.

2. Reduce Wastage

Proper peeling and cleaning reduces loss.

3. Direct Supply to:

• Kirana stores
• Small hotels
• Cloud kitchens
• Catering businesses

Avoid middlemen.

4. Add Brand Identity

• Attractive label
• Contact number
• WhatsApp ordering
• Simple logo

Branding allows you to sell at ₹10–₹15 higher price.

Shelf Life & Storage

Without preservatives:

• 7–10 days in refrigerator

With mild preservatives and proper hygiene:

• 30–45 days refrigerated

Never compromise hygiene.

FSSAI Registration – Mandatory?

If selling packaged food in India, registration is recommended.

Apply via Food Safety and Standards Authority of India

Government fee:

• ₹100 per year (Basic Registration)

Consultant charges optional.

Common Beginner Mistakes

• Not checking garlic quality
• Over-watering paste
• No expiry date
• No proper sealing
• Ignoring hygiene

Realistic Challenges

1. Price Fluctuation

Garlic price sometimes rises to ₹180/kg.

Solution: Stock in bulk during low-price season.

2. Competition

Local loose sellers may sell cheaper.

Solution: Focus on hygiene & consistent quality.

3. Short Shelf Life

Solution: Smaller batches, fast rotation.

Is 5kg Ginger Garlic Paste Business Worth It in 2026?

Yes, if:

• You maintain hygiene
• Control cost
• Build local customers
• Scale gradually

This is not a “get rich quick” scheme. It’s a steady, practical food business.

Final Profit Summary (5kg Batch at ₹210/kg)

Total Cost = ₹770
Revenue = ₹1050
Profit = ₹280

Two batches daily:

₹280 × 2 = ₹560/day
Monthly (25 days) = ₹14,000 approx

Scale to 20kg daily → profit can cross ₹25,000–₹30,000 monthly.

Final Thoughts

Small food businesses grow with:

• Consistency
• Cleanliness
• Trust
• Repeat customers

Start small with 5kg. Test your local demand. Improve quality. Then scale.

Ginger garlic paste may look simple — but with smart pricing and disciplined production, it can become a stable income source from your own kitchen.