Ask for things only a processor can show: a live video of the plant running, its own cleaning machines, a food licence at the plant address and raw material arriving from the market. A trader can usually show a warehouse, photos and lab reports, but not a running line it controls.
Traders are not bad by default. Many are honest and useful for small or mixed orders. The problem is a trader who presents as a processor, because then you do not know who controls your quality.
Why it matters
A processor buys raw material, usually at the APMC, then cleans, grades, sterilises and packs it. It controls the steps that decide quality. A trader buys finished goods from one or more processors. If the trader switches source between orders, your spec may be met by a different plant each time.
With a processor, you can audit the plant that makes your goods. With a trader, you need to know which plant they use, and whether it changes.
Checks that separate the two
- Live video, not recorded. Ask them to walk from the gate to the cleaning line, then show today's date on a phone screen.
- Machines. A seed spice processor should have sieves, aspirators, de-stoners, gravity separators and often a colour sorter. Ask how many lines they run.
- Licences. The FSSAI licence names the premises and usually the kind of business. A manufacturing licence at the plant address is a good sign. A trading or storage licence alone is not.
- Raw material. Ask where and how often they buy. A processor near Unjha or Rajkot will talk easily about auction buying and recent arrivals.
- Capacity. Ask for daily output for your product. A trader often gives a vague or very large answer.
- Product range. A supplier that claims to make every spice from every state is very likely a trader.
Questions that usually reveal a trader
A processor answers these quickly. A trader often needs time to ask someone else.
- Can my inspector visit the plant at a day's notice?
- Which plant will my order be processed and packed in, and what is its address?
- Can you share the original lab report, with the lab's name, so I can verify it?
- What was your last actual loading for this product and pack?
When a trader is the right choice
Traders can make sense for small lots, mixed containers or products far from your main region. They may consolidate several items into one shipment. If you use one, ask for the name of the processing plant, audit that plant, and write into the contract that the source cannot change without your approval.
For the same question in other industries, see how to tell a trader from a manufacturer in India. For a full visit checklist, see what a factory audit should contain.
How we help
Creston & Co visits the plant before you order and tells you plainly whether it is a processor or a trader. We share the real factory name and the audit report, and our fee comes only from the buyer. Ask for a free sourcing review.