Categories
Export

Stakeholders of Export Business

What are stakeholders in export business?

We bring you another interesting topic today. If you are someone who is interested in learning what other players are involved in export and what is the process of doing export. You need to read this blog till the end.

This blog will advance you a step ahead and you will explore the characters associated with the process of export that you must know.

We have been exporting many products and mainly construction equipment products from India across the world since 2014 and we have gained much valuable information and learning by doing the export. We will share those practical scenarios here with you.

There are two methods of learning.

1- Conventional Method

Business Schools and colleges provide their students the theoretical knowledge that is not much of use in the practical world.

You may have a lot of knowledge but you find your knowledge not solving the real issues you may face while working.

A person who went to the conventional college is surprised to know that there is very minimal relation of his knowledge with the practical work.

Degrees will make your profile to be known among people but it will not help you out much in your practical job.

Yes degrees will be of much use in getting a job in an organization but it will have a very minimal impact on your entrepreneurship.

What will impact you the most when you come to the world of doing export, let us discuss.

2- Experimental knowledge

In this, there is also two method

i- Learn from your owned experience

ii- Learn the best practices from someone’s previous experiences

Learn from your owned experience

associated with it and take decisions. There is a famous saying. Practice makes perfect.

Learn the best practices from someone’s previous experiences

The other method of learning is to learn from those who have already invested a lot of money and time to acquire such practical knowledge.

This will save your money and time and you would be able to gain the same knowledge as the experienced guy has acquired from ages by making a lot of investments and time at a nominal cost within a short period of time.

You can avoid all those mistakes done by the experienced guy in their time and you can utilize your money and time effectively and efficiently to maximize your work.

In this age, this kind of learning is most recommended as you need to progress in limited time to achieve success since speed matters a lot.

Just I am asking a very simple question.

The closure of the deal with the buyer for export of your goods is the end process or do you need more things to complete this?

Closing the deal is the primary and essential but you need a lot of things yet to complete your task that plays a very vital role.

What those things that you require are called stakeholders that are numerated below.

1- Logistics

2- Ports

3- Freight forwarder

4- Insurance

5- Banks

6- Custom clearance

 Logistics

As soon as you conclude the deal, you need to hire a logistic company that will take your goods to the port. Being an efficient exporter, you need to hire the best logistic company that will have previous experience to handle the type of products you deal at the best rate with efficiency.

Ports for export

Port is a key place where all the necessary examinations and documentations are done.

Ports are of three types

Sea Port

If the goods are in bulk and heavy weight, you are recommended to send only by sea. Shipping by sea will also charge you less compared to other mode

Air port

Shipping by air is useful only for low weight cargo or low volume cargo or the buyer is in hurry to get the products since the freight of the air cargo is very high

Dry Port

Dry ports also known as inland ports connect with the sea port. Dry Ports are made where the sea is not available nearby the places.

If the goods to be shipped from a place that has no sea port needs to use the dry ports to get the custom clearance and other documentation then they are sent by road to the sea port from where the goods are shipped.

Freight Forwarder

Freight forwarders are responsible to facilitate in getting your goods from your place to the buyer place. Based on the Incoterms, the freight forwarder arranges the delivery of the goods on board to ship or at the buyer’s port or at the buyer’s wearhouse. It all depends on the agreement between the buyer and the seller for delivery.

It is worth mentioning that freight forwarders coordinate with shipping lines to provide this facility to you.

There are various shipping lines in the world to carry cargo from the loading port to the discharge through various routes. There are different charges of different shipping lines. One shipping line charges high although the other one charges low for the same cargo. You as the exporter is the ultimate payer of those charges. You may pay a higher price and the other one may pay the lower price for the similar cargo and it all depends on your freight forwarder how smart the freight forwarder is. You cannot find such deep information anywhere until or unless you will have good experience in exporting.

Insurance

Insurance is mandatory in the export and it covers the risk associated with the shipment of goods damage or any loss. This type of insurance is known as Export-Import Cargo (Marine) Insurance that covers many risks depending on the policy of insurance.

The insurance can be purchased by the exporter or the importer as per their agreement.

Banks

Bank has a key role in the export business and it facilitates you to collect your payments agreed between the exporter and importer. The payment can be the advance payment, Letter of credit or credit.

The payment terms again are a different subject to be discussed and we will explain all in another blog.

Custom clearance

This is a very important thing in the entire process of exporting. The goods can be only shipped to the buyer, once the clearance from the customs department is received at the loading port and exported goods can be released at the buyer’s port when the custom clearance of that goods is obtained at the discharge port.

Hence the customs clearance is done from the loading port as well as the discharge port.

The custom clearance for you as an exporter has much importance at the loading port and the customer clearance for the importer has an importance at the discharge port.

You need to be careful on this part lot since a small negligence will get you in trouble if the clearance from the custom is denied then you are not able to ship your goods or get released from the discharge port.

You do not need to worry on this part since all these things can be taken care off by your CHA.

Just you need to hire the experienced and smart CHA to handle the customs.

These things will give you a tremendous experience and a lot of learning. Be careful when you hire these guys to get your export done.

Conclusion

The stakeholders are a very crucial part in the process of export. All the export works are carried out by these stakeholders while you are sitting at home but you need to hire smart and experienced guys or companies to get your work completed. If you make any mistake in hiring any chain of these stakeholders that are supposed to get your export job done smartly, you will be in a fuss and will face a lot of issues.

Hiring a right guy or company for your export work will ease your life and will attract your buyers the most and this will add more byers in your list.

If you want me to write some other topic that you may like the most, please comment.

Please share this on social media if you like this information valuable.

Categories
Export

What Is HS Code And Why You Need To Know About It

What is HSN Code?

The voice of HSN to you being an exporter is very familiar and common. This is super important for you to understand about HS in detail for your export and import assignments since this is an integral part of export and import and it plays a vital role in the process of exporting or importing.

If you are just learning how to do export, you might be very much concerned about it but you do not need to worry, I will explain it in this blog in such a simple way that you can become a master in it.

You need to read this blog till the end to become a master about HS code in just 5 minute read.

Let us get started…………

HSN means Harmonized System of Nomenclature that helps you to find out the class of goods and its tariff in case of export and import widely.

International harmonized code is used globally and acceptable worldwide. HS is a code generated by world customs organizations for each and every export product which is accepted and followed by the world.

This code has been developed by the World Customs Organization and it came into practice from 1st Jan 1988.

History

HS is mainly to collect tariff against the goods imported. The tariff before the HS code was simply collected on the list of products imported but it was effective till the list of goods was less. Once the list of import products became bigger, it became difficult to manage the collection of tariffs. The need of having a uniform name for the import goods for the global market arose.

The then system of collecting tariff for imported goods was only for the local government to collect their import duties and revenues but there was no humanized name internationally.

In the absence of HS code, there was a huge chance of conflict to classify the goods among various countries. It was a huge problem for the importer or exporter to assess the cost and viability of imports.

Then the need for naming goods in uniformity to be known and accepted by the world became essential.

In the 9th event of the International Statistical congresses held between 1853 and 1857, the idea for international tariff was explained and urged on its necessity to create a uniform code of each product to know their tariff easily.

During the meeting of International Commercial Congresses held in 1889 at Paris, the request was raised “Would it not be in the interest of all nations to adopt in their Customs tariffs and in their official statistics comparable classifications and uniform vocabularies?”

As a result, the draft for harmonized Systems became ready in 1931 and with multiple revisions, the final HS code came into existence on 1st jan 1988 with immediate effect.

As soon as it was announced, it was adopted and accepted by the various nations worldwide quickly and now it is benefiting more than 200 countries.

You can also read the whole story at this

The Level of HS

HS code has various levels and is divided into different segments.

  • Section – 21 sections are available and this is divided into Chapters.
  • Chapter – 98 chapters are represented in 2 digits from 01 to 98. These 2 digit of HS is known as Chapter and this is further divided into headings
  • Headings- it is shown in 4 digits having 1222 headings. In this, the last two digits are indicators of headings that are further divided into sub headings.
  • Sub Heading – 5224 subheadings have 6 digits where first 2 digit for Chapter, next two digit for headings and the last two digits for the subheadings
HS Code

The HSN consists of 2 digit, 4 digit, 6 digit and 8 digits. Let us understand what they are meant for

First initial 2 digit indicates the chapter number of the products, next two digit in 4 digit HSN indicates the heading number and the next two digit in 6 number HSN indicates the product code and the last two digit in 8 number HSN tells us the further classification of the product code.

For example;

Let us take the HSN Code as 901839

Here two initial digits (90) indicate the chapter which includes broader categories related to instruments as Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof.

The four digit HSN code (9018) where the digit 18 indicates the heading for the medical instruments like Instruments and appliances used in medical, surgical, dental or veterinary sciences, incl. cinematography apparatus, other electro-medical apparatus and sight-testing instruments, n.e.s.

The six digit HSN code (901839). The digit 39 indicates the subheading by representing the exact products as “Needles, catheters, cannula and the like, used in medical, surgical, dental or veterinary sciences (excluding syringes, tubular metal needles and needles for sutures)

Finally the HS code 901839, first two digits represent the chapter, the next two digits represent the heading and the last two digits represent the sub heading for the exact products.

In India, the HS code stretches up to 8 digits and some time to 10 digits as per the description and the requirement.

For example, the HS code for I.V. Cannula which is a medical surgical item in India is 90183990 where up to the 6 digits are the same and further 2 more digits 90 is added to describe further extension and subheading of the medical equipment which is I.V .Cannula.

In brief, the HSN code includes 21 sections, 98 chapters, 1244 headings and 5224 subheadings

Difference in HS code country wise

Up to 6 digit HS codes are used in all the countries unanimously and only the differences could be in the addition above 6 digit HS codes like the last 2 digit in case of the 8 digit and 4 digits in case of the 10 digits HS codes.

Depending on countries, they add extra 2 digit or 4 digit as per their requirement to describe their products in more detailed manner.

HS codes in popular countries

HS code in India

If you would be curious to know if the HS code is the same as in the international market. The answer is yes. India is in the agreement to follow the 6 digit HS code and on the top, it adds 2 digit more to fulfill its requirement.

The HS with 6 digits for a particular product will be the same and will match with HS used in other countries but it may differ in 8 level digit or 10 level digit in the last 2 digit or 4 digits.

India uses 8 digit HS code. The 2 digit on the top of 6 digit HS code are country based codes. India is one them that follow the same till 6 digit and uses extension of 2 digit as per its requirement.

HS code in US

10 DIGIT

HS code in China

It uses 10 digit HS code.

HS code in UK

10 digit

HS code is known differently in some countries.

In Brazil, HS code is known as NCM

More than 200 countries are in the agreement to use HS codes that cover 98% of goods in the world by representing 5000 products

When HSN Code started

HSN code was developed by WCO (World Custom Organization) in 1988 with immediate effect of the application for the world.

It covers 5000 products assigning them a HS code that are exported or imported.

How many countries use HSN CODE?

The WCO has 183 Members (as of December 2018)

To know more details about countries using HS code, check the list

Why is it important ?

HS code is a key part of the process in the export and import HS code is mainly used to monitor, control export and import and to collect tariff against each product based on the country.

This is universally recognized. It eases the job for importers, exporters, shipping line freight forwarders, insurers and custom departments to identify the products through the HS code hassle free. It helps in tariff collection as well as documentation.

It also helps importers to analyze the landing prices while buying a particular product from a particular. HS code can give you the details of what tariff or duty you need pay on your product imported from the exporter country.

The same HS code for one particular product may have different tariffs and it happens just because the agreement and relation between the countries; importer countries and exporter countries.

The tariff of the same HS code might be zero or 5% for most favored nations and the same HS code might have 25% tariff for Non-most favored Nations.

For example;

The HS code 842959 for backhoe loaders, Excavator and Wheel Loaders exported from India has different tariffs to different countries as can be seen in the below boxes.

What is the use of HSN Code?

There are below uses of the HS code:

1- To know Tariff. By HS code, you can identify the tariff of each country against a particular goods and it will help you a lot to make your decision in your exports or imports.

If the tariff against your goods in the buyer’s country is more, you will find the difficulty to export since the buyer calculates his landed prices after duty paid. If the buyer has the option to buy at the same price that you are quoting from another supplier of another country and the tariff against the goods is a bit lower, then the buyer may buy from another supplier and from you. This is the direct effect and you need to analyze as an exporter.

2- To collect import duties. For the custom department, it is an easy tool to know the tariff of the particular product and the collection of duties for it would be very easy.

3- Rules of Origin. Based on the HS code,

4- Monitoring of controlled goods

5- To collect internal taxes

6- WTO Agreement on trade in civil aircraft

7- WTO instruments on pharmaceutical products

8- Trade negotiations between countries for free trade agreements etc

9- To collect international trade statistics

10- To ease the custom process

11- Quota Control

12- Statistical reporting

What is the relation of HSN code to other things?

HS code is being used in GST. The implementation of GST made it mandatory to mention HS code for the product sold.

Conclusion

HS code is a vital part for export and import. It is globally harmonized and accepted by 6 digit HS code.

Various countries like India, USA, UK, and Saudi Arabia add further 2 digit, 4 digit and 6 digit as per their requirement.

This code is internally humanized, logical and legal to identify goods and services mutually across the world. It is also periodically updated and communicated with all member countries.

There are 21 sections, 98 chapters and 5224 subheadings. More than 200 countries are members of HSN developed world Customs organizations (WCO).

The main purpose of the HS is to collect tariff on the goods imported from overseas.

Please make your comment and share with your contacts.

If you need to know more about this, let me know through the comment, you will receive the answer.

Categories
Export

Type Of Exporters In India

Type Of Exporters In The Global Trade And The Important Role They Play

TypesOfExportersInIndia

Moving goods from a domestic country to overseas buyers is a process of export and it is done by types of exporters in India

Type of export houses sell various goods to overseas buyers and get foreign currencies to India. Types of exporters boost India export and strengthen the Indian economy.  

Global Trade And Exports

The globe has become a single trading hub due to advanced transportation. Merchants and traders import and export goods through various means. They rely on airplanes, ships, rail, and roadways to carry out trade.

International borders act as a barrier, but trade transcends these obstacles. It is one of the major contributors to any country’s gross domestic product (GDP). And export happens when goods and services produced in one country are sold in another nation. The foreign buyer is called an importer, while the seller of such goods and services is called an exporter.

The most popular goods exported are rice, textile, oil, vehicles, and computers. Manufactured items, aircraft, weapons, food, and chemicals are also actively sold overseas. Some exporters also deal in computers, electronics, and live animals. China, USA, Germany, and Japan are the global leaders in the trade. Their foreign exports’ value ranges between US$738 billion to US$2.5 trillion.

The Role Of Exporters

Let us discuss how many Types of Exporter in India fulfill the export demand and its requirement.

An exporter sells goods and services in an overseas market. This trading activity brings money into the country’s economy. The exporting nation’s GDP increases and it achieves a better standard of living and economy. However, the net GDP is calculated after subtracting the imports to the country.

  • The large exporters contribute to 50% of the total global GDP.
  • They also contribute to a total of 30% of the global trade.
  • Exporters follow rules and regulations to abide by the law.
  • They try to make products cheaper for global consumers.
  • Exporters also strive to strengthen intellectual property rights.

Types Of Exporters

There are different types of exporters based on the business model. The differences also extend to licenses, distribution channels, and legal considerations. The following exporters create success stories through their innovation, investments, and insightful natu

  • Manufacturer cum Exporter

Large businesses and organizations participate in this trade. They manufacture export-quality goods to sell abroad. They also procure and process raw materials into finished goods. Normally, they don’t depend on intermediaries or middlemen to export.

Manufacturing and then exporting has a huge risk involved as it requires huge investment and capital to start manufacturing. There would be a limited option to switch from one business to another if the product does not work or the demand for the product being manufactured drops.

  • Merchant Exporter

These exporters are primarily smaller, specialized organizations. They act as middlemen between manufacturers and foreign buyers. They procure orders directly or indirectly through their agencies. They adopt a strategy that focuses on risk reduction and profit maximization.

My company works as merchant exporter. We export a lot of machinery and equipment by procuring from the reputed and branded multinational manufacturing companies.

Unlike the manufacturer cum exporter, the merchant exporter has a free hand to switch from one product to another if the existing product does not work or the demand for the product in exporting countries becomes less.

The merchant exporting will be the first option if you are planning to jump in the field of exporting the world.

  • Service Exporter

The service exporter specializes in non-physical or intangible products. He usually operates a company that delivers services to a foreign client. As a result, the country of his residence benefits immensely. Some well know services include software, healthcare, hotels, and consultancy businesses. The foreign client can be a full-fledged company or a single person.

  • Deemed Exporter

Deemed exporters do not participate in a trade like regular exporters. Their operations involve a special category of goods called deemed exports. In such transactions, the goods supplied do not leave the country of origin. While payments made for the supplies are done in native currency or free foreign exchange. Some deemed exporters act as middlemen and sell to foreign customers.

My Company is the direct exporter and it acts as deemed exporter some time while supplying goods meant for export to its associate companies.

In this case, we buy the goods on the local GST billing and sell it to the company that exports to its overseas client.

This is worth mention that the direct exporting receives all the export benefit the Indian government provides but the deemed export is not eligible to receive export incentives and other export benefits.

A deemed export is just a kind of local sale and purchases business activities and no export benefit would be availed.

  • Project Exporter

The globe has become an inter-connected place due to technology. Some exporters exploit this reality by undertaking overseas projects. They recruit and deploy personnel to work for a foreign client. These exporters are subject to national, regional, and international laws and acts.

Global Business Value

Some of the global organizations which oversee regulations are WTO, NAFTA, CAFTA-DR, GEE, etc,.  GEE or the global economic system is a social network that facilitates international sales. Export to different countries is not as risky as before. So the various exporters add value to their industry.

  • All the exporters undertake global-level risk to carry out trade. They rely on assistance to overcome trade barriers and achieve profits.
  • International sales have become safe, secure, and efficient. Streamlined global finances and banking ensure reliable payment methods – both online and offline!
  • Small and medium-sized companies cater to domestic markets and they may expand into global markets to meet the export demand.
  • A large number of goods and services find global acceptance. Therefore, even small, mid-sized companies can safely export their products.
  • Global trade overcomes cultural and linguistic barriers. Interpreters and the English language act as an effective conduit between the exporter and the foreign buyer.

Conclusion

Take away from this blog is to start exporting as merchant exporter so that you could start with the small budget and experiment. If any turbulence of slowing down the chosen export occurs, you would change the export product easily with marginal cost to spend.

Direct exporting to avail export benefits is recommended. Avoid manufacturing in the initial days of exporting. A deemed export is for a time when you are not able to do the direct export?

Keep the deemed export as last option

If you like this blog, please comment and share it on Facebook, LinkedIn, Twitter, and other social media with your family and friends so that maximum people get benefited from this blog.

Categories
Export

Export of rice from India

Rice is a cereal grain that is globally consumed as a staple food. It is the third-largest agricultural commodities in the world after sugarcane and maize. Rice can be dried and ground to make flour. It is also used in beers and alcoholic drinks. But, it is mainly steamed or boiled for daily consumption.

RiceExportfromIndia
India is one of the largest exporter across the world

Countries exporting rice

Rice is mainly cultivated in Southeast Asia and the Indian subcontinent. It is also exported by some countries in Europe, the Americas and the Caribbean. India is the largest exporter with 32.5% at US$7.1 billion. Thailand is the next largest with 19.2% exports valued at US$4.2 billion. USA, China, Pakistan, and Vietnam export 5% to 8% valued at $1 to $2 billion. Spain, Belgium, and the Netherlands do $200 to $300 million business. Italy has a market share of 2.9% at US$624.3 billion. Other major players are Myanmar, Cambodia, Uruguay, Brazil and Paraguay with a combined value of US$1.9 billion.

Countries importing rice

India, a major exporter, offers Basmati and Non-Basmati varieties.  Basmati is imported mainly by Saudi Arabia, Iran, Iraq, UAE, and Kuwait. They import between 1.8 to 9.5 million metric tonnes per year. The UK, USA, and Yemen Republic follow suit with 1.8, 1.2, and 1.4 million metric tonnes per year. The total worth of exports amounts to US$2.5 billion. The Non-basmati variety is chiefly imported by Nepal, Senegal, Benin, Bangladesh, Guinea, and Ivory Coast. These countries import anywhere between 7.7 to 4.3 lakh metric tonnes of rice. UAE, Somalia, Indonesia, and Liberia also import a combined quantity of 12 lakh metric tonnes.

Which country is on the top to export rice

India is by far the largest exporter of rice in the world. It exports US$7 billion worth of rice amounting to 32.5% of the global share. The shipments mainly reach the Gulf, African, and Caribbean nations. Iran, UAE, and Nepal request bulk imports amounting to 40%, 33%, and 23% respectively. The country exports both Basmati and Non-basmati varieties worth billions of dollars.

Which country is on the top to import rice

Nepal is the largest importer of Non-basmati rice from India. It receives 7.7 lac metric tonnes of rice at a value of US$245 million. Saudi Arabia and Iran have a huge demand for Basmati rice from India. They import 7 to 9 lakh metric tonnes at US$570 to US$840 million. The imports from these nations have decreased in recent times by 22% to 33%.

What type of rice is exported and which one is more famous for export

Basmati is a long, slender, and aromatic rice variety. It comes in two different colours, white and brown. The rice is used to cook delicious and flavour-filled dishes like biryani, fried rice and pilaf. The high-quality variety is also more expensive. But, it is preferred by oil-rich nations like Saudi Arabia, UAE, Iran, Iraq, and Yemen. The non-basmati varieties cost a lot less and are bought by Nepal, Senegal, Bangladesh, Indonesia, Liberia and Guinea.

India is specialized in what type of rice for export and what is the volume of rice

India grows more than 6000 species of rice varieties all across the country. The most popular ones are, undoubtedly, the basmati type. Importers also opt for non-basmati species like sona masoori, gobindo bhog, ambemohar, seerga sambha, mullan khazama, etc., The Basmati variety is grown in North and North-Western India. More than 40 lakh metric tonnes of this species is shipped to various countries. It has a total value of US3.5 billion dollars or 22,000 crore Rupees. The rice is exported to Saudi Arabia, Iran, Iraq, UAE, and Yemen. The non-basmati exports, valued at US$1.6 billion, weigh 48 lakh metric tonnes.

Which region is more famous to export rice in India

Rice constitutes 2% of total Indian exports to other countries. The sector has grown at CAGR of 14% between 2010 and 2019. Haryana is by far the topmost rice exporting State in India. It shipped US$ 2.4 billion worth of rice in 2019. It has a CAGR of 3%, followed closely by the Western state of Gujarat. Haryana exports different kinds such as Sugandha, Sharbati, Parmal, RH-10, etc., It also ships traditional, PUSA, 1121, and 1509 varieties of the aromatic Basmati rice.

Who are the suppliers of Indian Rice

Haryana, Gujarat, Delhi, West Bengal, and Andhra Pradesh are major rice cultivators. In Haryana, R.P. Exports, K.S. International, Goel International, Sri Krishna and Hanuman Rice Mills are popular. Other suppliers include Rice India Exports, Indus Food Products, Dolphin International, Amira Food, Priyanka Overseas, United and Jaishree Exports. Exporters like Adani Wilmar, Al Gyas, Al Maha Foods, Amba/Arm/Balaji Overseas focuses primarily on Saudi market.

Who are the buyers of Indian rice

Indian rice is shipped all over the world by various suppliers. The major buyers are Saudi Arabia, Nepal, Iran, UAE, Iraq, Yemen, Senegal, and Ivory Coast. Other importers include Benin, USA, Liberia, Bangladesh, and the Caribbean nations.

Price of Indian export rice

The 5% parboiled, broken rice variety costs US$ 470 to 480 per tonne. Last year its price varied between US$358 to US$365 per tonne. The more expensive and aromatic Basmati species has a price range of US$ 1200 to US$ 860 per tonne. The non-basmati variety is priced at US$ 400 to 420 per tonne, while Sella type sells at approximately US$500 to 530 per metric tonne.

Price of other Countries suppliers’ rice

The 5% broken rice from Thailand is priced at US$560 to 570 per metric tonne. USA rice prices range between US$430 to 564 per tonne. Broken, white rice from Vietnam costs US$370 to 380 per tonne. While Chinese suppliers offer their variety at US$457 per metric tonne.

Future of Indian export rice

India exports a major portion of its Basmati rice to other countries. The non-basmati varieties also yield good profits. India grows rabi crops during dry monsoon, while Kharif crop is grown during wet monsoons. Western states grow Kharif rice while Assam, TN, WB, and AP grow the rabi crop. The exports have seen a decline in recent months. UAE and Yemen are major importers and regional tensions are not helping the rice imports. However, exports to Saudi, USA, Benin and Iraq have grown by 4%, 10%, and 8% recently.

What is the tariff against Indian rice

India mainly exports large quantities of basmati varieties. The rate of duty for this variety is Rs 12,000 per tonne. This is approximately US$150 per metric tonne of Basmati rice.

Which countries come to MFN for rice export

Most Favoured Nation(MFN) is a multilateral trading system’s principle under WTO/GATT rules. All member countries extend this status to each other. India’s MFN in rice export business include Sri Lanka, Nepal, and Bangladesh. Pakistan has been denied the status in 2019 due to political tensions. Gulf nations like Saudi Arabia, UAE, Kuwait, Qatar, Bahrain, and Oman also receive this status. India does billions of dollars worth trade with these nations, that includes rice exports. The MFN status ensures trade equality between nations, without imposing any bias or partiality.

Is there any export barrier for Indian rice?

Indian rice exports are very dynamic and span the whole world. However, pandemic worries in recent times did create unfortunate barriers. They include export bottlenecks, logistical issues, social and economic shutdown. The exporters face labour, raw material, and transportation shortages. They also face bottlenecks in phytosanitary certification, shipping documents’ clearance, and lack of courier services. Other problems include import and export goods’ clearance, and inaccessible ports or shipping yards. India’s EU exports have decreased by 40% in 2018-19 due to maximum residue level(MSL) in pesticides issue. 

What certification will be required to export Indian Rice

The Export Inspection Council or EIC is the official Indian certification body. It ensures high quality and safety of shipped food products. Those who export basmati and other rice varieties to EU need a certificate from them. The board inspects the sample for acceptable levels of a fungicide called Tricyclazole. The early limit was 0.03 mg per kg, while the new level is 0.01 mg per kg only. The board works under the Export Quality Control and Inspection Act of 1963. Exporters also seek IEC code from DGFT, fix an HS code; and apply for APEDA, Non-GMO, and PQ Clearance.

Any specific packages are required for rice export?

Agricultural & Processed Food Products Export Development Authority (APEDA) specifies the packaging rules. The shipments have to follow the labelling format and packed for containment, protection, preservation, and safety. The packages have to be attractive, and convenient to distribute, handle, display, open, use, reuse, and sale. They also require security features such as RFID tags, anti-theft devices, electronic article surveillance tags, and dye-packs.

Trade agreement between India and other countries for rice export

India favours rice exports to the Middle East, Singapore, Malaysia, South Africa and Egypt. The popular European importers are the UK, Belgium, France, Italy, Germany, and Georgia. The list also includes the USA, Canada, and Australia

% tariff for India Export to which countries

As per India’s Agriculture Trade Policy, rice is exported freely. There are no prohibitions or constraints under Foreign Trade Agreements(FTAs). These include agreements with Korea, Japan, ASEAN, SAFTA and UTP. Exports can ship cereals such as broken, brown, milled or semi-milled, and husk rice under free trade policy. However, they have to pay currently applicable duties with bound rates(fixed by WTO rules) and statutory duty at the revenue department’s discretion

What is the benefit the Indian government provides for Indian rice export (For Example: Draw Back / MEIS)

India’s competitors in the global rice market are Thailand and Vietnam. At the policy level, the government encourages low-cost production technology, surveys, and quality assurance. It also considers subsidized seeds, breeding programmes, modernization of rice mills, etc., Other ideas include systematized supply chains, logistics, R&D, Intelligence gathering, and sufficient seaports. To encourage the export of agricultural produce, MEIS was initiated. The Merchandise Export from India Scheme offers rewards, inducements, and incentives. But the drawbacks are merchandise bias, bureaucratic tedium, and corruption.  Customs and central duties on traded goods, that are imported and exported, can be reclaimed. But the costs are heavy due to procedural delays.

Promotional council for Indian Export Rice

APEDA Online Registration and its Advantages | by SHIVAM PANDEY ...

The APEDA works under Indian government after replacing PFEPC(Process food export promotional council). It supports various animal and organic products, including cereals like rice. The All India Rice Exporters’ Association (AIREA) is also a force to reckon with. It generates trade leads, boosts exports, promotes and develops basmati rice. AIREA also organizes seminars, supports exporters, and raises public awareness. It participates in global trade fairs, coordinates trade delegations, and interacts with Commerce and other ministries.

Agricultural and Processed Food Products Export Development Authority (APEDA)

The APEDA is the apex body with branches in New Delhi, New Bombay, Hyderabad, Bangalore, Kolkatta, and Guwahati. It offers membership apps, farmers portal and a single window for trade facilitation. The authority also regularly publishes rice exporters’ lists, survey reports, and trade advisories.  Exporters also learn about standard operating procedures, storage and handling requirements. APEDA archives data and it also operates a specialized basmati.net portal for users.

Activities of promotion council for Indian export rice

AIREA is a registered body that focuses on basmati and non-basmati rice. The association liaisons with State and Union governments to frame and resolve trade and policy issues. They work closely with APEDA, NPPO, Commerce Ministry, State and Union Agriculture Ministries. Their objective is to bring rice exporters onto a single platform. To achieve this mission, they offer facilitation, appraisal, assistive, and organizational services. But, APEDA also handles fruits, veggies, flowers, seeds, etc.

What is the main season to grow rice

Rice is mainly grown in the Winter Kharif season of June-July(sowing). The produce is harvested in Northern, NW states by November-December. Summer or Autumn rice is also grown in various parts of India. Assam, Bengal, AP, Kerala, Tamil Nadu, and Bihar sow in November-February. They harvest different rabi varieties like Boro, Dalua, Dalwa, Punja, and Navarai in March-June.

New rice vs old rice and their prices

New rice is not normally cooked and eaten right after the harvest. Rice has to age and becomes a little old. This old rice is drier and has a dehydrated look. Their low moisture content demands more water while cooking. But the cooked grains look perfect and fluffy, unlike new rice that has stickiness after cooking. Old rice is expensive due to enhanced taste, aroma, and cooking quality. Basmati sells 3 to 4 times higher when old than at new rice prices. Basmati varieties cost ranges between Rs 3600 to Rs 5400 per quintal. While non-basmati species cost Rs 2200 to Rs 2600. Some varieties like Steam, Sella, Samba, and Gobindo Bhog are priced higher between Rs 3000 to Rs 6000.

News / Magazines for rice export

APEDA has product catalogues for basmati and non-basmati rice. The non-basmati catalogues include Parboiled, brown, husk, broken, milled and semi-milled rice. Their website also offers regular field crop survey reports. You can get the latest rice export news from APEDA and AIREA. Rice India is a periodical magazine published by AIREA. They offer news, views, updates, facts, and figures. The journal also profiles companies, states, countries, and trade leaders. The outlook, The Hindu, European Supermarket Magazine, and Hunt’s Merchants’ Magazine are other good sources of news.

Companies that research the export of rice

APEDA’s Basmati Export Development Foundation(BEDF) has 10 acres of land. They have a state of the art lab, demo and training farms, and authorized centres. They improve farmer awareness, build seed capacity, and do basmati quality assurance. They work with CDFD of Hyderabad to DNA fingerprint Basmati identification. They also strive to register and protect intellectual property rights. The Indian Institute of Rich Research in Hyderabad develops crop cultivation technologies and conducts multi-location rice genetic lines testing. They work under ICAR which is the apex body in Delhi for coordination, guidance, education, and management of research.

Conclusion

India is one the largest rice exporters. The key export destination of Indian rice is Saudi Arabia, UAE, Kuwait and other parts of GCC. The Indian Basmati rice is the best in the world and Arabs like Indian Basmati rice the most favorite. Saudi is one the top importing countries to buy Basmati rice from India.

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Export

Exports From India To Top 10 Countries

The Secret of TOP 10 EXPORT DESTINATIONS FOR INDIAN EXPORTERS

India is one of the largest exporter countries for many products in the world. This is an interesting fact to know, India`s exports to the world in 2018 were $323 billion while the exports of the world to the world were $19284 billion, measured as 1.67% of total world exports. The 1.67% shares in the total world exports are considered a sizable and decent export.

Let us check some facts for the last 5 years for world export as shown in the chart;

Source: TradeMap

World export with some fluctuations seems to be stable and consistent in performance, it was down in 2015 and 2016 but it had gained in 2017 as well as in 2018 and it continues.

Source: TradeMap

India`s export was down in 2015 and 2016 as we saw in the world export but it had gained in 2017 and 2018.

Source: TradeMap

India`s exports compared to the world exports are declined since the world export has performed bit good in 2018 but the performance of India`s export was not at the same pace and it was down by 0.1% in 2018 as you can find the difference in the graph; 1.69% in 2017 and 1.68% in 2018.

Now let us discuss 10 major countries that are importing the most from India.

Exports from India to USA

India is a good partner of the United States of America in exports. Many products from India are being exported to the USA. A question arises in our mind that why America imports various products from India although it can import from another country. The answer to this question is exported from India to the USA are made due to the main two reason;

  • Quality products
  • Reasonable prices

India has earned its name and won the trust of America due to the good quality of products. The right prices and good rates attract the American importers to meet their import needs as much they can do from India.

The top products exported from India to the USA you must know are;

  • Diamonds and jewelry
  • Pharmaceutical products
  • Machinery
  • Mineral fuels
  • Vehicles
  • apparel and clothing accessories
  • Fish and crustaceans
  • Organic chemicals
  • Electrical machinery and equipment
  • iron or steel
  • Carpets
  • Plastics and articles

Exports from India to China

India and China have bilateral relations and both the country exports its valuable products to each other to meet the requirements needed by the people in the country. Imports of various products from China to India are in good demand but India also exports various products to China effectively and efficiently.

Indian top Products exported to China includes the below;

  • Mineral fuels and its related products
  • Organic chemicals
  • Cotton
  • Ores, slag and ash
  • Plastics and its related products
  • Salt & sulfur
  • Copper
  • Fish
  • Natural pearls & precious stones
  • Iron and steel

Exports from India to Canada

India is considered to be a good partner of Canada in trade and exports various products.

  • iron & steel
  • Pharmaceutical products
  • Vehicles
  • Machinery
  • Organic chemicals
  • apparel and clothing
  • Natural pearls & precious stones
  • Fish
  • Plastics based products
  • Electrical machinery and equipment
  • Cereals
  • Rubber
  • Coffee & tea
  • Other Agro Products

If you are planning to start exporting to Canada and if you are dealing with any of the above-mentioned products, you will have a good chance to start with your desired products.

Exports from India to Pakistan

The political relation between India and Pakistan is not good at the moment but the trade between both countries has much potential which is not being explored at its full capacity. Instead, interesting facts and worth mentioning is that India exports many products to Pakistan as enumerated below;

  • Cotton
  • Organic chemicals
  • Plastics products
  • Machinery
  • Pharmaceutical products
  • Iron and steel
  • Coffee & Tea
  • Rubber-based products
  • Essential oils, perfumery & cosmetics
  • Cereals

At the moment, India’s export to Pakistan is drastically down sine exporters do not feel comfortable to trade with Pakistan due to the political relations between both the countries.

If the relation of both countries comes on the track, both the countries have massive potentials to trade with others and get benefited.

Exports from India to Australia

Australia is one of the leading importers from India and it imports all the famous products from India. Australian importers always focus on quality products that they get from India.

Some of the main products exported by India to Australia is the following;

  • Mineral fuels, mineral oils & products
  • Railway or tramway locomotives, rolling stock and parts thereof; railway or tramway track fixtures
  • Cultured pearls, precious stones, precious metals
  • Pharmaceutical products
  • Electrical machinery and equipment
  • Machinery
  • Iron or steel
  • Textile articles
  • Vehicles
  • Apparel and clothing
  • Leather items; travel goods, handbags, and similar items
  • Carpets and other textile floor coverings
  • Rubber
  • Plastics based products
  • Coffee, tea,
  • Cereals
  • Organic chemical
  • Medical Equipment
  • Cosmetics
  • Footwear

Exports from India to Dubai

In Gulf Cooperation Council Countries (GCC), UAE is a prominent member and plays a vital role in these countries and known as the trading and economic hub.

United Arab Emirates consists of 6 states; Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al-Quwain, Fujairah and Ras Al Khaimah.

Abu Dhabi is the capital of UAE and Dubai is the hub of business and trading.

Dubai leads Gulf countries in the trade is also known as a global hub for trade.

The exports from India to Dubai are significant and Dubai is one of the top export destinations for India.

Many traders sitting in Dubai import products from India and re-export to other countries.

The major products imported by Dubai from India are;

  • Natural pearls, precious or semi-precious stones & metals
  • Mineral fuels, mineral oils, and products, Bitumen
  • Electrical machinery and equipment
  • Ships, boats and floating structures
  • Apparel and clothing accessories, knitted and not knitted
  • Iron and steel
  • Machinery, mechanical appliances
  • Cereals
  • Organic chemicals
  • Vehicles
  • Plastics articles
  • Edible fruit and nuts
  • Paper and paperboard
  • Fish
  • Meat and edible meat offal
  • Pharmaceutical products
  • Coffee, tea, and spices
  • Essential oils, perfumery and cosmetic

The interesting facts and worth mentioning here are UAE meets its 9% import needs from India only.

Exports from India to Malaysia

Malaysia exports palm oil to India in good quantity but also import many products from India and the major imported products are;

  • Mineral fuels
  • Aluminum and articles
  • Organic chemicals
  • Meat and edible meat offal
  • Machinery
  • Iron and steel
  • Electrical machinery
  • Cotton
  • Coffee, tea, and spices
  • Natural or cultured pearls, precious or semi-precious stones, precious metals
  • Apparel and clothing accessories, knitted as well not knitted
  • Pharmaceutical products
  • Miscellaneous chemical products
  • Plastics and articles
  • Zinc
  • Fish
  • Vehicles
  • Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical equipment

Exports from India to African Countries

Opportunities for exports to African countries are huge you need to decide what products you can export.

Africa is a big market that imports various products and it depends on largely products imported from different countries.

India is one that satisfies the needs of Africa`s requirements largely.

India is trying to strengthen its business relationship with African countries so that it can increase its exports in many folds.

At the moment, India exports various products to African Countries.

Few of them are;

  • Mineral fuels, mineral oils, and products of their distillation; bituminous substances; mineral. . .
  • Machinery, mechanical appliances, nuclear reactors, boilers.
  • Pharmaceutical products
  • Vehicles other than railway or tramway rolling stock, and parts and accessories thereof
  • Plastics and its articles
  • Paper and paperboard
  • Electrical machinery and equipment and parts.
  • Organic chemicals
  • Iron and steel
  • iron or steel
  • Miscellaneous chemical products
  • Rubber and its articles.
  • Cereals
  • Sugars and sugar confectionery
  • Aluminum and its articles
  • Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical . . .
  • Footwear, gaiters and the like; parts of such articles
  • Zinc and articles thereof
  • Other made-up textile articles.

If you are one who is planning to export to African countries, you need to choose the products from the above or any other products which you may find suitable for the Africa Market and then you are set to go and explore this wide market. Africa has great potentials and we need to explore as much as we can do.

The list of goods imported by Africa from India mentioned here is not the exhaustive list. Africa imports huge items and I will write a separate blog on it only for the products exported to Africa in detail. You need to keep coming on this blog to get updates on new topics.

Let me check how big Africa is. As World meters provide the below data, Africa consists of 54 countries.

The details of African countries and its population I have mentioned here just for the reference to know how big the export market is for you.

The opportunity for you to export is everywhere in Africa and you need to prepare yourselves firmly and catch them with the right mind-set and right products.

Exports from India to Thailand

Thailand is also in the race to import products from India and the below major items are imported by the country.

  • Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad
  • Machinery, mechanical appliances, nuclear reactors
  • Organic chemicals
  • Fish and crustaceans
  • Iron and steel
  • Vehicles
  • Electrical machinery and equipment and parts
  • Cotton
  • Pharmaceutical products
  • Coffee, tea, and spices
  • Mineral fuels, mineral oils, and products of their distillation
  • Aluminum
  • Miscellaneous chemical products
  • Iron or steel

Exports from India to Nepal

Nepal is a landlocked country and depends on India to meet most of its requirements. Almost each and everything required by Nepal is exported by India. Let us see the major export products made by India to Nepal.

Top products imported by Nepal from India are following;

  • Mineral fuels, oils, distillation products, etc.
  • Articles of apparel, accessories, not knit or crochet
  • Iron and steel
  • Electrical, electronic equipment
  • Machinery, nuclear reactors, boilers, etc.
  • Vehicles other than railway, tramway
  • Cereals
  • Plastics and articles thereof
  • Pharmaceutical products
  • Footwear, gaiters and the like, parts thereof
  • Optical, photo, technical, medical, etc apparatus
  • Other made textile articles, sets, worn clothing, etc
  • Edible fruit, nuts, peel of citrus fruit, melons
  • Paper and paperboard, articles of pulp, paper, and board
  • Manmade staple fibers
  • Essential oils, perfumes, cosmetics, toiletries
  • Articles of iron or steel
  • Residues, wastes of the food industry, animal fodder
  • Salt, sulfur, earth, stone, plaster, lime and cement
  • Edible vegetables and certain roots and tubers
  • Articles of leather, animal gut, harness, travel goods
  • Oilseed, oleagic fruits, grain, seed, fruit, etc.
  • Coffee, tea, mate, and spices
  • Rubber and articles

Final word

India has resources a lot to fulfill the need of the domestic market as well as the need of the international market. India has the potential to produce quality products at the best prices. Many countries look forward to India to import many products to cater to their importing needs. India is one of the top exporters in the world and the government is always trying to help the exporter to export more by incentivizing monetary and giving other benefits to them.

The major partners of India in imports include the USA, China, Canada, Australia, Dubai, Africa, Malaysia, Thailand, and Nepal as well as many other partners.

You are the lucky one who is born in India since you being Indian and staying in India has a lot of opportunities and various products to start with. You need to just choose one product and one export destination and go ahead.

If you want me to write on any topic, make your comment below and if you find this blog informative and useful, please share this on your social media platform to get your friends benefited.