Profitable Rice Export Business to Middle East Market from India

Globally, India is prominent for rice cultivation being one of the largest producers as well as consumers of rice. The rice export from India has been particularly compelling and profitable for Indian farmers due to its high quality and high demand. In the financial year 2020, starting in January and ending in October, 11.95 million tonnes of basmati rice were already exported, and in the financial year 2019, it was 8.34 million tonnes. 

The export of non-basmati rice from India has grown with time thanks to the people becoming more aware and using the options available digitally.It can be said without a doubt that basmati rice export is an essential part of our economy and provides financial support for a large magnitude of farmers in India. Without wasting time, let us now look at how to export rice from India properly to extract enough profit. 

Rice export from India 

The year 2021 was awesome for the export of basmati rice from India as Indian basmati rice exporters struck in different foreign countries. Middle East consumed more rice, which led to an increase in demand for basmati rice and has imported 6 million tonnes of rice from India in comparison to the year 2020.

 Furthermore, the middle east and other Arabian countries are the largest markets of basmati rice exported from India due to their large Indian emigrants’ populations. India exported 14 million tonnes of rice around the globe, leading to the country gaining a share in the global rice export market. These are some major importers of Indian basmati rice 

1. United States of America
2. United Kingdom
3. Singapore
4. Saudi Arabia
5. Malaysia

There is competition between so many countries but India still ranks second when it comes to rice export. Here is a data table for rice export to other countries in the financial year 2019-2020. In the table given below, the rice exports are shown in metric tonnes and the generated revenue is shown in lakhs.

Export non-basmati rice from India 

The non-basmati rice export is constantly growing in recent years and we have noticed an extensive hike in 2020. According to the data shown by the government of India, India managed to export 61% more non-basmati rice in the financial year 2020 in comparison to the previous year 2019.

India exported 7.6 million tonnes of non-basmati rice in the year 2020 and the year is considered as the best year for rice export. In addition, increasing demand for rice is great news for Indian farmers as this enables them to ship out more varieties of rice to the international markets. The major markets for Indian non-basmati rice are Africa and Middle East countries. 

Rice consumption in Middle East

Rice markets in the Middle East and Africa are driven by the rising consumption of rice in various regions. The consumption of rice in the Middle East was 9.1 million tonnes in 2017 whereas the rice consumption in Africa was 0.9 million tonnes. The rising production of paddy crops in Nigeria has widely supported the rice industry in Africa. 

Globally, the Middle East is the largest consumer of basmati rice and it accounts for 37.8% of total rice consumption. Since the production of rice is low compared to the consumption of rice in the region, Middle East is the largest importer of rice from India. As well as Iran is another leading importer of basmati rice from India, making the country the fifth-largest importer of paddy crop from India in 2018. 

The GCC (Gulf Cooperation Council) countries are the major importers of basmati rice in the Middle East. Saudi Arabia and the United Arab Emirates together accounted for 30% of the imports of the rice variety from India. Hence, rice export from India is a profitable business initiative one can invest in.  

Middle East market Analysis 

The increasing imports of basmati rice in the Middle East are providing the impulsive growth of the overall global market. The import of basmati rice has also risen due to the increasing demand domestically because rice is an integral part of many dishes in the Middle East. The basmati rice is used to prepare tasty dishes made of multiple layers of dried fruits, meats, and rice. Rice is a part of the staple diet of the people in the Middle East and Africa. Overall, rice is one of the major food crops in Africa. 

Export basmati rice from India 

• You need to complete the registration or incorporation of your company. You need to regulate that which type of legal entity to incorporate as, and submit the application for the same with the Ministry of Corporate Affairs.
• After getting the incorporation certificate, you must apply for and obtain a company PAN card from (National Securities Depository Limited) NDSL’s official portal.
• You need to obtain the Import Export Code from the Directorate-General of Foreign Trade. 
• If your company deals with scheduled products, then you need to obtain an APEDA license. 

 
Once You have all the documents in place, you can start looking for buyers and suppliers. For this, you can search for Tradologie.com.

Documentation required to export rice from India (Detailed)

1. Registration-cum-membership certificate from the (Directorate General of Foreign Trade)DGFT
2. Import Export Code 
3. FSSAI(Food Safety and Standards Authority of India) license
4. ISO (International Organization for Standardization)certification to ensure quality
5. GST registration for tax purposes 
6. Company registration certificate
7. Company PAN card
8. ID and address proof of the applicant
9. Applicant’s photograph 
10. Banker’s certificate
11. Bank account statements and other financial information
12. Copy of a cancelled cheque 

There is an option to complete the registration process by yourself but it would be great if you take help from a legal entity to go for an error free process. After setting up the company you can export rice without any hassle through Tradologie.com. When people search rice online they mostly search for Tradologie.com. The company has 500K+ verified ready-to-buy global buyers and 45K+ global sellers. The number of buyers and sellers are increasing every month. The platform is the world’s first next generation B2B platform for food products and agri-commodities.