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Basmati rice export is arguably the crowning jewel of the Agri commodities export basket of India, spice exports from India may or may not be equally important. Initiation of business of basmati rice export from India by any particular exporter needs arrangement of documents required for rice exports. This is the first tip for any prospective rice exporter.
Information About Mandatory Requirements For Basmati Rice Exports From India Is The First Tip
- Registration certificate from the directorate general of foreign trade.
- Food safety and standards authority of India (FSSAI) license.
- Quality assurance certification of ISO.
- GST registration.
- Company pan card
- Registration of company
- Banker’s certificate.
Exploring The Rice Export Market Is The Second Tip
India is the largest producer and exporter of rice, producing 70% of total basmati rice produced across the world and 76% of the global market is under the control of India. Following are major importers of Indian rice:
- UAE – the United Arab Emirates is a monarchical federation of seven emirates (Abu Dhabi, Sharjah, Dubai, Ajman, Ras al Khaimah, and Umm al Quwain). Indian rice is popular in all emirates of UAE. Demand from UAE is showing an upward trend for some specific reasons.
- Demand fueled by rumors- After the Indian government banned wheat exports and restricted sugar exports, rumor mongers started spreading rumors that the rice exports ban is also a foregone conclusion. This fueled rice exports from India to all import destinations including UAE. UAE rice buyers are agreeing to pay a premium over and above skyrocketing global prices of Indian basmati.
- Re-export of basmati from UAE behind high demand- UAE is the largest re-exporter of rice especially Indian basmati rice. It re-exports Indian basmati to Iran on a large scale. Indirect export of rice originating from India via Saudi Arabia to Iran benefits both Iran and India, it helps Iran in plugging the gap between demand and supply of basmati rice in the domestic market, and India is maintaining its stranglehold on the export market. Those who want to export rice from India to UAE can register on tradologie.com generation next B2B procurement platform and find suitable importers from among tens of thousands of buyers registered on this platform interested to import basmati rice from India. One can both sell and buy basmati rice in bulk using this inquiry to deliver a B2B procurement platform.
The Third Tip Will Be Exploring Varieties Of Basmati In Demand In The Export Market
Basmati rice varieties popular in the global Agri commodities market are the following:
- 1121 Basmati rice- This variety is hugely popular all around the world including in the Middle East, Europe, Africa, and the USA. This aromatic extra long variety of rice is the queen of all varieties of rice.
- Golden Sella basmati rice- This is a parboiled variety of rice best used as an accompaniment to various meat dishes. As milled rice is pale yellow hence it is called golden sella.
- Pusa basmati- 145 days is all that is needed for this variety of rice to mature and it is known for its early maturing characteristic.
- Sharbati rice- Its sweet taste and non-sticky character make this long grain rice an in-demand variety.
- Sugandha basmati- As the name suggests this is an extremely aromatic basmati rice variety.
The Fourth Tip Would Be To Identify Competitors Within The Country
Like any other export business, any basmati rice exporter will come across competitors. The Indian basmati rice export market is a competitive market and every rice trader of some repute wants to export rice. There are numerous rice exporters in India and prices are also not uniform. Before starting the basmati rice export business one needs to check the strategies of competitors. 76% of the global rice export market is under Indian control and it is needless to say that every Agri commodities exporter dealing in any kind of agricultural commodity be it spices, cotton, dry fruits, pulses, vegetables, sugar, meat, wheat, or cereals, will any day prefer to export rice.
Pick up any rice trading company randomly, and nine out of ten times you will discover that the rice exporter is hidden in the garb of the rice trader. One company that every rice exporter will have to compete with compulsively is Shri Lal Mahal Group Exports, a multinational giant that had a very humble beginning in 1907. This inarguably the largest rice exporter of India gets competition in rice exports from Mahavir rice mills founded in 1985. Veer overseas, Galore Impex. ASM Global, Anaya exports, etc. are some other key rice exporters of India.
The Fifth Tip Will Be The Identification Of Outside Competitors
There are a select few competitors of India in the basmati export market. The reality is that as far as basmati rice exports are concerned only Pakistan gives competition but the rice export business is more threatened by the non-basmati rice business of other countries. Pakistan dominates the EU basmati rice export market and opposes the demand for the GI tag by India in the EU for its rice.
The Sixth Tip Would Be A Threat To Business On Account Of The Non-Basmati Rice Trade
The global basmati rice trade is facing stiff competition from non-basmati rice global trade. Many countries can match India in the rice export business despite not growing rice. Thailand grows non-basmati rice only but is a leading exporter of rice. Likewise, Vietnam is also a leading exporter of rice giving stiff competition to the Indian rice export business. Japan is another competitor of India’s export business without growing basmati.
The Seventh Tip Would Be To Know About Newer Markets And Future Challenges
Any exporter should know about newer markets for Indian basmati rice. Latin America is a developing market for Indian basmati and the European Union market is also not fully explored. Egypt’s declaration of basmati cultivation and export to India in near future but nothing is impossible. Indian basmati rice exporters need to be ready for challenges like the one posed by Egypt. Indian basmati rice export market had endured the challenge posted by American texmati.
