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Rice is not a perishable commodity; it’s a blessing because as much as we kept it its price increased. Even if your container got stuck somewhere in the shipment even for 6 months. Rice will never get complaints from a buyer. If you want to know the process, and formalities of exporting rice, and which quality of rice is used for exporting to other countries from India. Which country is the importer of India? India is the largest exporter of rice approximately 40% of the world’s rice is exported by India. It means if you are into the rice business, you should not be worried as you will always get the order in bulk.
Qualities of rice in India:
Almost 6000 qualities of rice in India. It means if the buyer asked you for any quality of rice, you can provide it if you living and exporting rice from India.
Common quantity and quality of rice:
Common quantity means 1 container of rice you can send to the buyer. 1 container has the capacity of carrying 27 tons of rice. That is distributed in 25kg of the bag. It means you need to arrange 27 tons of rice for export to the buyer. As buyers will demand in bulk.
Common quality order of rice:
Basmati is the famous rice of India which is exported all over the world. And the famous number is 1121 rice. It is demanded worldwide. You need to grip 1121 basmati rice if you want to export rice from India. Except for this, 34 varieties of basmati rice can be ordered. Here is one more rice named IR64. This can also be demanded by the buyer. Usually, minimum rice order is not placed, mostly heavy bulk orders are mostly placed in the export business.
34 types of basmati rice:
Basmati rice has classify in different verities, like one is basmati rice 217, basmati rice(370), pusa basmati rice, kasturi basmati rice Haryana basmati rice, ranbir basmati, basmati 386,pusa basmati rice 1460, pusa basmati rice 1401, basmati rice 564, pusa basmati 1609,pusa basmati 1607,pusa basmati 1728, pusa basmati 1718,pusa basmati 1692 pusa basmati rice 5,Haryana basmati number 2,.
The problem most exporters faced:
When you purchase from mills, there are a lot of rice varieties. If you are supplying in bulk you need to understand every type of rice otherwise maybe you will get confused. In south India many years ago there is kolam rice, At that time it was roughly 50rs per kg but equivalent to the same form of looking rice named RNR grain whose price was 35rs per kg, so before you purchase you should have understands its differentiation. Trading rice has almost 90 varieties that buyers demand.
Estate where basmati rice is produced:
If you want to purchase basmati rice for export, Uttar Pradesh, Haryana, Uttaranchal, Punjab, And if you dealing in non-basmati rice. Then you can purchase from Assam, Bihar and Odisha are the production states
Demanded rice in the international market:
Brown rice, mogra rice, bamboo rice black rice are the best to export. If we talk about black rice you can sell it internationally it has too much demand all over the world but you will not find any competitors. Same as red rice, Indrayani rice is very good to export because no competition exists in this rice export. White rice is also an example of it. Chinese people love to eat seafood and fish they prefer sushi rice for it which only India can export. purple Thai rice is also demanded, sticky rice bomba rice and arborio rice have much margin, Sona masoori rice samba rice, rose matta rice, and Valencia rice is also demanded.
Document needed for export rice:
Firm registration, GST, Pan Card, if you dealing in food products you need to have an FSSAI certificate central. APEDA membership is required. RCMC (registration-cum-membership-certificate). ISO certification will increase your reputation in front of buyers. You can easily get the order from buyers. What are the importing countries of rice: if you want to earn higher profit you can export to the USA. The U.S.A, Australia Indonesia, Malaysia, Saudi Arabia, and UAE already is the biggest importer of rice today.
Payment terms:
It’s also a risk for the buyer. So here are terms to make it easy for a buyer as well as for an exporter or supplier. LC (Letter of Credit); You make a deal with the buyer for example 500$ per ton. Sonamasoori supplied to him. CIF (cost of insurance and trade) is a very nominal fee you put in. You have to prepare the rice, shipped and loaded to container ship it to the boat, when it’s come to the vessel you will get a BL(bill of lading) with these documents invoices, and other documents you will submit all documentation to your bank. You interact with the bank and asked that please send it to the buyers' bank. The buyers' bank first releases your payment and then releases the paper of assurance to release the container, the buyer will never be able to get the paper until his bank will send you money. If the document is still in your custody buyer will not be able to release the container.
Importing rice from India is profitable for overseas buyers:
Our Indian Government has facilitated exporters by releasing tax on subsidy at the rate of 5%, rice cultivation, cost, and labor involve in planting rice seeds are at cheaper rates as compared to other exporter companies which come out the lowest price rate for overseas buyers. We have an immense variety of rice as per the demand of the buyer. Black rice, red rice, and sushi rice are also rare qualities that are only produced in India, basmati and India gate rice are the special rice that is unbeatable for other exporter companies to grow.
Rice production in India:
Here is an upward trend of rice production in India, as in 2019 India produced 177.6 M Tonnes of rice produced which was 23.5% of the total world’s share. India is the second large producer in the world’s 10 biggest rice producers. While in 2020-2021 India’s still leading 122.27 million metric tons production of rice. If you want to start your business as an exporter of rice, best to invest in rice.