How To Start A Rice Export Business In India
Beginning a rice export organization in India can be quite lucrative. India being one of the largest producers of rice, there exists a very big market that has not been exploited in international markets. Still, as with any other company, it entails strategic management and implementation. Here is how you can begin the process the following are the step by step guide.
Understand the Market
As any export business would require, it’s helpful to know where the market is before getting into the rice export business. Find out which countries are importing rice and what sort of rice they are looking forward to consuming. For instance, the basmati rice has market in Middle East while the non basmati has its market in Africa. It will also give you the clue where to concentrate your energies.
To do this, you can use tools such as **Siomex** which will give you import/export activities and these reveal a current market trend. Siomex gives accurate information on rice export destinations, trade volume of rice, and the actual exporters. All of this can be of great help when making a certain decision.
Register Your Business
The next procedure that must be adopted is to make sure that the business is registered. Rice export business in India is legal, thus you will require to form a legal entity to undertake the business. You could do this as a sole trader, or in partnership with others or as a private limited company if that is what you prefer. After registration, proceed and apply for an Import Export Code (IEC) which is compulsory for any business that engages in export and import. The copy of this code is available with the Director General of Foreign Trade (DGFT).
Source Quality Rice
You need to be aware that it is the quality of the rice that you export that is going to determine your your success in the market. Source quality rice from dependable farmers or rice mills required for further selling at the food store. You also might think of organizing a quality control department to guarantee that the rice that is produced is up to the international level before it is exported.
For instance, when exporting to Japan, they have certain standards that when not met your goods will not be allowed into the country. Therefore, it can be seen that quality must be built at the onset so that loss can be minimized.
Identify Your Buyers
Identifying the consumers is arguably an important component of the rice export business. Some of the ways to export include; visiting trade fairs, approaching the foreign embassies or approach export promotion companies that provide a web based platform whereby exporters are matched to buyers. Some of the best sites for such purposes are alibaba.com, Trade India and Global sources.
Furthermore, you can use **Siomex** to find out prospective purchasers by presenting import figures from different countries. With the aid of this tool, you can identify areas that people are interested in the type of rice you deal in, and who the consumers are.
Arrange Logistics
Exporting rice is very important to consider the best logistics plan to be used. Transportation from the rice mills to the port, packaging of the rice and customs formalities will be required for the marketing of the rice.
For instance – while exporting to Middle East, you might choose a port in India, Mumbai or Chennai because they are more connected to Middle East. One way of guaranteeing that rice gets to the end user in the right condition is by hiring the services of a good shipping company.
Comply with Legal Requirements
These are however general guidelines of import regulations that are set by different countries across the globe. First and foremost, be certain that you meet the legal obligations that are provided by the importing country. This may include acquiring the right licenses, meeting packages and labels regulation and also paying the right taxes.
For instance, European countries have put in place some strict laws on the permissible level of pesticide residues allowed in foods. Just to be on safe side every rice must be accorded these standards to avoid having any legal issues.
Payment Gateway
It is very important that a safe and effective method of how to pay is established in international business. You can opt for LC for payment which is safer more so for small traders with whom you have done business for the first time. An LC pays you the money, guaranteed that the shipping documents are genuine.
Another common method could be a bank transfer where you are in well-known with the buyer. Policies concerning payment should be clearly stated and understood so as to prevent misunderstandings that would arise out of payment contingencies.
Promote Your Business
This makes it very important that you effectively market your rice export business so as to attract the potential buyers. Develop a corporate-like website to present your products, certifications, and other credentials of the business. Marketing is commonly done using LInkedIn in a bid to identify potential buyers in the market as well as the professionals within the field.
From the conceptual analysis of **Siomex**, it is also possible to use its data for the selection of specific markets and their further marketing by relevant methods. For instance, if you discover that Europe’s consumption rate of organic rice is rising, you may need to launch an advocacy campaign to encourage people to use your brand of organic rice.
Start Small, Then Scale
One must therefore consider starting small, that is, the client base can be as little as one or two, depending on how eager one is to begin the business. Once you are established and you have had built up your relationships, you can expand your business concept by venturing into other markets or by expanding your exports. This is less risky and gives one an opportunity to master some of the details of the business.
Keep Learning and Adapting
It is for this reason that there are changes in the international market in from regulations policies, consumer behavior, and the general market situation. Always be aware of changes in trends in the market and be prepared to change with it. It made be through tools like Siomex through which you can be in informed of any changes in data relating to imports and exports.
If a person intends to start a business of exporting rice to different countries then it will not be a very easy job but yes it is convenient to experience such a business. If you follow all these steps and other resources such as **Siomex**, then it’ll be easier to maneuver through the export business and achieve higher levels for your business venture.