How to export non-basmati rice from india

It took me years to understand how non-basmati rice, particularly parboiled rice, can be exported from India and I will simplify it for you here.

Export of non-basmati rice from India can be quite a lucrative ventures since the country has a surplus of rice. It is used as a staple food across the world and India is one of the biggest producers of non-basmati rice.

First of all, it may seem that exporting rice would be a complicated procedure especially for an SME and even more for a large company intending to enter the international markets. Nevertheless, there is no need to despair with this one because by dividing it into steps you can go over the process with greater ease and detail at each stage. Here is a step by step on how to go about it.

Step 1 involves registration of the business which can be done either online or physically, therefore the following guidelines needs to be followed;

The first thing that you should consider is to ensure that your business is well registered. The condition here is to have a legally registered business which then allows you to perform export operations. Starting a business in India is not very complex especially when it comes to getting a registration.

You will have to think about a name that you would wish your business to bear as well as the relevant and procedural documents that you will be required to present to the government of your country. After registering your business, your company become eligible to engage in international and local trades.

Get an IEC Code

To export any product from India such as non basmati rice you need to obtain an Importer Exporter Code. The IEC is a distinct 10 digit identification number provided by the Directorate General of Foreign Trade and is compulsory for its export as well as import operations.

An IEC can be applied for through the internet through the DGFT official website. It is an easy method where companies need to feed basic business information, identification proof and some amount of fee.

Without this code you cannot clear any customs hence you will be unable to transport your rice across borders. Therefore, it important to ensure that you secure your IEC as early as possible and as a matter of top priority.

Select Your type of Rice

The non-basmati rice has many subcategories and therefore, the right one for the targeted market should be selected. India grows different varieties of non BasmattI rice including Sona Masuri, IR – 64, Ponni and Kolam rice.

Every type is different and the need of certain types may be higher in one country, while in another quantity or type may not be as necessary.

There is therefore the need that before exporting, one should find out the type of rice that is demanded in those markets. Which type of rice, long grain or short grain rice is in demand by the customers? What does he eat, white or brown or parboiled rice? The answers to these questions would enable one to take informed decisions.

Identify your customers from Other International Countries

After deciding on the variety, the next thing that has to be done is sourcing consumers from the international market. This may appear hard especially for new exporters, however it is among the most important aspects of export business.

Possible methods of searching for the buyers include participating in international trade shows, contacting rice importers and using on-line trade directories.

Among the most useful instruments in this respect is the use of export data providers such as Iomex. With Iomex you can get trade data, specifically the country that is interested in the non-basmati rice so as to find the genuine buyers.

As a result of this information it will be easier to determine their trade volumes and prices and their contact details for further marketing.

The final step that needs to be taken is Quality Control Now, it is Furthermore, that quality control is also an important perspective to be taken to ensure the quality of the final product.

Most of the countries consume rice as their staple food, and therefore when exporting rice quality is an essential factor. There are always quality standards within the international markets therefore you should make sure the rice you are exporting has to meet the required quality.

Sourcing is one of the initial areas where a good quality control process can be implemented. Purchase the rice from highly esteemed farmer or supplier for one to be assured of good quality rice.

Also, it is crucial to make sure that you have certifications that are needed for being in business in the certain country such as ISO certifications or even food hygiene certifications. Certifications should be provided because they will increase your level of credibility while at the same time creating more markets for exports.

For the finished product, it involves packing and labeling of special products or putting a cover on special products or even labeling of special products and packing of some of these products.

After making sure that the rice you have produced meets the right quality that is required in the market, the last steps will be packaging and labeling.

The reason why packaging is considered is because it is used to contain the rice during the transportation. Ensure that you use materials that are hard wearing and are suitable for use with food especially in preserving the quality of the rice.

Proper labeling of the packing is almost as important as putting the products in the right containers. There is always place for general marking that contains information such as the name of the product, its weight, the country of origin and any certification marks.

If these guidelines are not followed it will lead to a delay or refusal to accept shipment.

End of the production and set up for logistics & shipping.

After that, you have to organise transportation of the rice from India to the target country of export. This involves identifying the right logistic provider for the shipment of hefty cargoes that characterize rice supplies with confirmation that the consignment gets to the intended location within the agreed time on sound condition.

When it comes to delivery, it is necessary to state that the price per container and delivery times depend on the delivery’s final point. Customs duties, taxes and insurance fees must also be taken into consideration in order to determine all expenses more accurately.

If one is new to this then it may be wise to contract a freight forwarder, which is a company that arranges both domestic and international shipment for the exporter.

Handle Documentation

Like any other exportable goods, proper documentation is required and this include export of non-basmati rice. The required documents for rice exports from India generally include:The required documents for rice exports from India generally include:

Commercial Invoice: This is the bill of the rice that you are exporting.

Packing List: This indicates the amount of rice that is contained in each pack and the type of rice packed.

Bill of Lading: This is an evidence of shipment.

Certificate of Origin: This in turns certifies that the rice is of India origin.

You may also require other certificates which depend on the importing country’s set standards. Where you do not offer the necessary and acceptable documents, your shipment is either delayed or rejected.

Step 9: Payment Terms The final process is to incorporate payment terms so as to be in a position to evaluate the best payment terms to be offered to the customer.

The payment is important in exporting since it enables the exporter receive payments for exported goods. Payment terms should also not be left out with the buyer when making the agreement on the deal. Basically, there are several forms of payments in international trade which include advance payment, letters of credit and open account.

Letters of Credit are often raised in international trade as they comes with protection for both the buyer as well as the seller.

They assist the exporter in recovering their monies after they provide shipping information such as the shipping documents.

Third Party Trade Data for Growth

Ideally, when the company has managed to export the first batch of non-basmati rice, the issue of expansion should come into the radar. One of the ways is through using the trade data analysis to be able to monitor the trends and the opportunities which exist in the market.

Here, you can use the services of SIomex that offers export data. It is possible to find new areas with increasing demand for non-basmati rice using trade data, which, in turn, will help you to expand your target market. Such information can be useful when you are in the process of trying to grow your export operation.

Conclusion

The business of exporting non-basmati rice from the country is very bright and there is a large scope of it. For even those who do not have any expertise in exports,

it is now easier to go through the process and prepare adequately with the help of the guidelines mentioned above, from the registration of the business to getting data from Siomex for trade.

Quality, buyer selection, and documentation are the key areas that a new or an experienced exporter must ensure that he is making his business successful and profitable.