Starting Rice Retailing and Distribution Business

Rice is a staple in many homes especially in Asia and Africa. Millions of tons are consumed everyday worldwide.
Rice farming is labor intensive and requires certain soil and weather conditions. An investor looking to make money selling rice has many options.
The person could invest in haulage, re-packaging, wholesale or retail. The market is huge and attracts good price in the open market.
The distributor needs to find a ready source of the grain and sell to retailers. The retail end only requires networking with wholesalers of the commodity.
Stocking rice in large quantities is capital intensive and you need funding. To start the business you need funding, good storage facility and location. Other requirements are haulage, company registration, casual labor and marketing.
Write a Business Plan
Write a rice distribution and retail business plan. Then carry out a feasibility study and survey. Make sure you have suppliers, storage facility and transportation
Funding for Rice Distribution Business
The capital requirements are huge because rice is expensive. A wholesaler needs to stock several tons of the grain.
To rise funds apply for loans from a bank or financial institution. Make sure the loan is long termed and has low interest rate.
Other funding sources are venture capitalist, angel investors, cooperatives or core investors. You could form a partnership or borrow from friends and family.
  • bank loans
  • venture capitalist
  • angel investors
  • cooperatives
  • core investors
  • partnership
  • borrow from family
  • Personal Savings
Warehousing is very important in the commodity trade. The warehouse should be secured, easily assessable and dry. The storage facility should be well aerated and have pallets.
Rice Supplier
The main suppliers are local farmers, farmer markets or huge wholesalers. Many Asian countries are destination locations for local wholesalers. Try to network with farmers, warehouse and commodity markets.
Permits and Licensing
In some countries importation of rice is banned. This is usually a Government initiative to stimulate local production.
Therefore before venturing into the rice business find out what is obtainable in your country. If importing rice is forbidden then there is a good business opportunity in farming.
Find out the legal requirement applicable to your country. Once you have the license, register the business as a limited liability company. You need insurance cover and tax identification number.
The price of your rice should be competitive and same as those obtainable in the market. You could use credit supply for trusted retailers, free delivery and discounts.
Other marketing strategy includes product sampling, branding and promotions. Reach customers through television advertisement, radio and print media.
Build a website and introduce the product, price and location. Add contact information, telephone number and address of warehouse.


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