Start your own Rice Export Business

Rice is a cereal grain seed from a grass species and one of the most consumed staple foods in the world. The grain is popular in every country and accounts for billions of tons eaten annually.
That is why rice is the most sort-after grain in the world. It provides adequate caloric and nutritional properties for the body.
Apart from human consumption rice is processed into various products and used in different applications. The crop was farmed over 12,000 years ago making it one of the oldest crops domesticated by man.
The ancient crops origin was traced back to ancient China. And each region and country has its own brand of rice popular to natives.
Therefore investors interested in the business should export only rice popular to the demography of interest.
Understand the Business
Before starting a rice export business you need to understand the business. Gain knowledge through seminars, trade workshops, books and approach the department of Agriculture.
You need to determine the type of rice consumed in your target country. Then find a trustworthy supplier and use a letter of credit.
Make sure all the documentation are in order and study the destination countries laws and regulations. To find buyers and supplier visit the export council in your country. They will provide information on how to source the products.
Rice Cultivation
Rice thrives in areas of high rainfall and abundant water resources. The rugged plant is adaptable to many terrains.
It requires intensive farming, cheap labor and flooded fields to grow. The farmers usually use methods such as flooding, damming and irrigation methods to cultivate rice.
They face challenges such as fertilizer, vermin infestation and opportunistic weeds. Common rice growing environments include upland areas, coastal wetlands or deep water rice.
Other notable growth topography includes lowlands, irrigated lands and rain-fed areas.
Where Rice is Cultivated
  • Upland areas
  • Coastal wetlands
  • Deep water rice
  • Lowlands
  • Irrigated lands
  • Rain-fed areas
  • Hilly sides
Nutritional Value
Rice fulfills a large percent of our dietary needs. There are many parameters when measuring the nutritional value of rice.
Such permutations are usually based in soil quality, strain of rice, processed, enriched or polished. Other factors are method of storage and preparation in dishes.
This affects the nutritional value such as amount of fat, carbohydrate, minerals and vitamin in the strain of rice. Common nutrients found in rice are carbohydrates, sugars, dietary fiber, fat and protein.
Others include 5 types of vitamins, minerals such as magnesium, phosphorous and calcium.
Top Rice Producers
As an importer/exporter of rice you need a ready source and export market. Most countries eat only certain type of rice therefore exporting the wrong type is counterproductive.
An exporter needs to know the local cuisine and favorite rice before shipment.  As stated earlier many countries produce rice commercially for both domestic and foreign markets.
The top 14 producers by way of metric tons is China, followed by India, Indonesia, Vietnam, Thailand, South Korea and Bangladesh. Other major players include Myanmar, Philippines, Brazil, Japan, Pakistan, Cambodia and United States of America
Types of Rice
There are different types of rice cultivated for export and domestic markets. Common types include red rice, purple rice, golden rice, white and brown rice.
Some are polished, pre-boiled, long-grain, regular and enriched. Others are cooked without salt and short grain.
Registration and Licenses
Before you can start an import/export business you need an IEC code. Get a membership certificate from the export promotional council.
There are a few options when it comes to incorporation. You could register a business name or as a sole proprietor.
Incorporate the business into a limited liability company and try partnership arrangement. You are at liberty to make it a public or private company.
Other requirements are PAN number from department of tax and register with the central board of excise and customs.
  • Register the business as a legal entity
  • Get a custom clearing agent
  • Apply for IEC code
  • Apply for TIN/VAT registration
  • Register with the central board of excise and customs
Government Control
Rice is subject to government country because it is considered a staple. The controls usually restrict importation of the commodity.
Some countries even place an outright ban on the produce.. The meddling has impacted negatively on amount of rice exported worldwide.
Only five countries are noted for exportation of rice such as the United States of America and Vietnam. Other exporters are Thailand, china and India.
Thailand and Vietnam export jasmine rice while India adds the Basmati variety. Things that affect the price of rice are government control, war, drought, infestation and vermin. The major producers of rice are also the largest consumers.
Things that Affect Rice Production
Things that affect rice production are rainfall, sola radiation, wind and atmospheric water vapor. Other determinants include pest, diseases and pollution. 
How to Start Your Own Rice Export Business
  •  Write a rice export/import business plan
  • Carry out a feasibility study
  • Find buyers and suppliers of the produce
  • Learn the business
  • Register your company
  • Acquire relevant documentation
  • You need export license, letter of credit
  • Secure contract agreements
  • Make sure you ship the correct rice
  • Collect payment

Image source- celestyn.in

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