India is a king in terms of rice cultivation because the country is the largest producer and consumer of rice. The export of rice from India has been singularly significant and profitable for Indian farmers and exporters due to its high demand and superior quality.
Exports of basmati rice were 11.95 million tonnes between January and October 2020, compared to 8.34 million tonnes in 2019. With passing time, the exportation of non-basmati rice from India has also increased significantly as people have become more aware of the options available.
The export of basmati rice is an integral part of the Indian economy and acts as a backbone for small and large farmers.
Export of rice from India
The fiscal year 2020 was profitable for the export of basmati rice, because the major rice importing coutries were importing rice from India to store rice for emergency as the whole world was suffering from Covid 19. In addition, this drives an overall increase in the demand for basmati rice, leading to the export of 6 million tonnes of rice.
Further, the Middle East and other Arab countries are the largest markets for basmati rice exported from India due to their large Indian migrant population. Overall, India shipped 14 million tonnes of rice all over the world, giving us a market share in the global rice export industry. Some major importers of basmati rice from India are the United States of America, United Kingdom, Singapore, Saudi Arabia, and Malaysia.
India faced relentless competition from many other countries but still ranks second in terms of the global list of rice exporters. Here is a quick look at the quantity of basmati rice exported from India as compared to other nations in the financial year 2019-2020. In addition, in the table below, the quantity provided is in metric tons, while the value of export is shown in millions.
The export of non-basmati rice from India
The export of non-basmati rice from India has been constantly growing in recent years and saw significant growth in 2020. The data released by the government of India says that India managed to export 61% more non-basmati rice in 2020 in comparison to the previous year 2019.
In the fiscal year 2020, the country exported 7.6 million tonnes of non-basmati rice, making it the best year for such exports. In addition, it is good news for farmers across the country as it enables them to export more varieties of rice to the international market such as the major markets for non-basmati rice is Africa and Middle East.
Export of rice from India (profits)
People who are thinking of starting a rice export business from India will be curious to know about the profit margins. In the rice export business, the profit margin depends on the country you are exporting to and the quantity of export in a year. For this, you need to choose the best importing country according to their demand. With your quality service and unique marketing techniques, you can build long-lasting relationships with suppliers in that country.
Despite environmental issues like natural calamities and low monsoon in the fiscal year 2014-15. India rice production in India is at a higher rate around 104 million tonnes. However, fluctuations in external markets such as changes in foreign trade rules between both India and the importing country need to be studied frequently to ensure smooth export trade without any hassle. Choosing the country that is most in demand for export and implementing the best marketing strategies in the export business can make your rice export business more profitable.
The procedure of rice export from India
● Register a firm/company – You need to register a company/firm to export from India. The registration process is easy but it can take up to 20 days. Once your registration is complete, you can apply for the company PAN (Permanent Account Number). You will receive your company’s PAN in less than 40 days. It is recommended that you add an exporter to your company name as it will make it clear to your international buyer base that they are dealing with the right company/person.
● IEC (Import Export Code) – IEC is a must for rice export from India. You can apply for IEC online from the DGFT (Directorate General of Foreign Trade) portal.
● Choose your target country – Choose your target country where you will export rice. It will be good if you export in those countries that are major importers of rice such as the United States of America, United Kingdom, and Singapore.
● Find Buyers – The essential part of any export business is to find buyers in the global market. Some tips for finding potential buyers are through contacting people you know in that country through trade fairs and expos. You can also register with Tradologie.com. This platform has more than 500K+ verified buyers from all over the world.
To know how to export rice from India, it is essential to have a good knowledge of the country to which rice is to be exported. It is always better to look for a less competitive target market. In other words, you can choose the importing country where there is a huge demand for rice but less supply from any other rival countries like China, Myanmar, Japan, etc.
These are some important documents required:
- Registration-cum-membership certificate from the DGFT (Directorate General of Foreign Trade)
- Import Export Code
- You need have Food Safety and Standards Authority of India license
- International Organization for Standardization (ISO) certification to ensure quality compliance
- Goods and Services Tax (GST) registration
- Company registration certificate
- Company PAN card
- ID and address proof of the applicant
- Applicant’s photograph
- Banker’s certificate
- Memorandum of Association and Articles of Association
- Customs documents (Bill of lading and customs entry document)
- Bank account statements and other financial information
- Copy of a canceled cheque
- Udyog registration certificate
You have the option to complete the registration yourself, it will be much easier if you seek the help of legal advisory services.