How to Export Basmati Rice from India, Eastgate Export Pvt Ltd is renowned globally for rice cultivation being one of the largest producers and consumers of rice. The export of basmati rice has been particularly significant and profitable for Indian farmers due to its high demand and superior quality. Between January and October of 2020, basmati rice export stood at 11.95 million tons, whereas in 2019 it was 8.34 million tons. With time, the export of non-basmati rice from India has also risen considerably thanks to people becoming more aware of the options available. Further, Needless to say, basmati rice export is an integral part of our economy and provides financial relief to several large farmers. Hence, let us now look at how to export basmati rice from India correctly to ensure a profit.
Export of Basmati Rice from India
The previous year was great for the export of basmati rice from India, as Indian nationals stuck in various foreign nations consumed more rice. Additionally, this led to an overall increase in the demand for basmati rice, leading to the export of over 6 million tons of rice. Further, the Middle East and other Arabian countries are the biggest markets for basmati rice exported from India due to their large Indian expatriate population. Overall, India shipped out over 14 million tons of rice around the world, leading to us gaining market share in the global rice export industry. The major importers of Indian basmati rice are as follows
United States of America
Likewise, despite facing severe competition from other countries, India still ranks second when it comes to the global list of rice exporters. Here’s a quick look at the volume of basmati rice exported from India to other nations in FY 2019-2020. Additionally, in the table given below, the quantity provided is in metric tonnes, whereas the value of the exports has been denoted in lakhs.
Sl No Country Quantity Value
1 Iran 1,319,154.92 884,636.07
2 Saudi Arabia 974,125.09 678,807.04
3 Iraq 465,890.33 307,805.67
4 UAE 208,519.39 148,699.97
5 Kuwait 197,103.99 142,636.90
How to Export Basmati Rice from India
First and foremost, entrepreneurs will need to complete the registration or incorporation of their company. The business owners will need to determine which type of legal entity to incorporate as and submit the application for the same via the SPICe form with the Ministry of Corporate Affairs.
After obtaining the incorporation certificate, the entrepreneurs must apply for and obtain a company PAN card via the NDSL’s official portal.
The next mandatory requirement that companies need to fulfil is obtaining the Import Export Code from the Directorate-General of Foreign Trade.
Companies that deal with scheduled products such as those mentioned below will need to obtain an APEDA Registration.
Honey, jaggery, and sugar products
Fruits and vegetables
Biscuits and bakery items
Groundnuts, peanuts, and walnuts
Pickles, papads, and chutneys
Herbal and medicinal plants
Once the company has all the documents in place, they can start looking for suppliers, vendors, and buyers. They can choose to produce their own rice or procure the same from farmers by establishing an efficient supply chain.
Lastly, the company will have to contact a reputed shipping service to ensure that they are able to fulfil all the orders they undertake.