Presentationon

Exporting Rice at Singapore

Submitted To: Prof. Ankit Gautam

Submitted By: Chirag Dabgar (03)

Introduction:• India is popular for its rice cultivation all over the world. As per the statistical analysis, rice

production in India covers around 46% of the total food crop production. It is also seen that other

countries also have demand the rice from India.

• Hence, starting a rice export business would be a profitable and feasible business option. In this

article you will learn how to export rice from India including steps and procedures.

• Rice has been a major element in the exports from India all these years. In the year 1999, around

25% of the total agricultural exports in India were rice. Countries like Myanmar, China, Japan,

Vietnam etc also are some of the rice production giants.

• However, the ever-growing demand for the rice across the globe gives a good scope for the rice

export business from India.

28.80%

21.60%8.60%

6.90%

5.70%

4.60%4.00%

2.40% 1.80% 1.70% 1.40% 1.30%

Major rice producers of the worldChinaIndiaIndionesiaBangladeshVietnamThailandMyanamarPhilippinesBrazilJapanUSAPakistan

34.50%

16.50%14.10%

10.60%

6.30%

3.10%2.90%

2.30% 2.10% 1.20% 1.10%0.90%0.60%0.50%

Major Rice Exporting Countries of the world

Thailand VietnamIndia PakistanUSA ChinaEgypt ItalyUruguay SpainArgentina UAEBelgium Myanmar

Main Import Markets Of Rice

• India primarily focuses MiddleEast and African countries for exporting its non-basmati rice. The

major markets for the basmati rice from India are European countries and USA. Some other major

countries who import rice from India are Saudi Arabia, Singapore, Australia, Malaysia etc.

• In spite of the competition from other countries, India is considered as the second largest country

in rice exports. In order to ease and relax the foreign trade, the government of India has framed

relaxed EXIM trade policies. Besides, the Indian government has kept a highly competitive price

for the exported rice in the importing countries. These are the good signs that boost the export of

rice from India.

Basmati rice in IndiaBasmati rice means “queen of fragrance “ or the perfumed one . It is also known pearls of rice

Indian Basmati rice is a long grained aromatic rice with unique , pleasing & appetizing aroma .

It is the aroma that gives its novel characteristics unmatched by any other rice grain anywhere else in the

world. Thus it is considered world’s best quality rice .

It is grown in small part of indo gangetic plains at foothills of Himalayas in the north of country . The area in

which it is grown is geographically well defined & includes Haryana , western U.P , H.P J&K , Punjab .

The climate & soil in this region combines to give Indian Basmati its unique qualities & characteristics . Its

unique qualities & characteristics cannot be replicated if grown elsewhere in the world. Thus basmati rice is

produced only in India & a small part of Pakistan. Thus it is considered nature’s gift to India .

EXPORT DOCUMENTATION AND PROCEDURES• Step.1 : Apply to the Director General of Foreign Trade (DGFT) and get Import Export code

(IEC).

• Step.2: Register with EPC (Export Promotion Councils) and obtain RCMC Certificate.

• Step.3: We get order before sending sample and then both party agree upon the term and

condition.

• Step.4: We start production of rice.

• Step.5: Check the quality control and obtain from the inspector of quality control certificate.

• Step.6 : Exportable are then then dispatched to port for transit.

• Step.7 : We applying to an insurance company for marine insurance cover.

Continue….• Step.8: after compilation of the formalities, we contact C&F agent for warehousing and they give

Shipping Bill.

• Step.9: After loading goods in ship, Captain issue Mate’s Receipt.

• Step.10: Official agent issue bill of lading.

• Step.11: We get Certificate of origin from Chamber of Commerce office.

• Step.12: We send all document to importer.

• Sstep.13: We present all the important documentation to our bank within 21 days.

• Step.14: Our bank send all document to importer bank.

Documentation Required for Exporting:1. Commercial invoice

2. Bill of lading

3. Consular invoice

4. Certificate of origin

5. Inspection certification

6. Dock receipt and warehouse receipt

7. Destination control statement

8. Insurance certificate

9. Export license

10. Export packing list

Import Procedure in Singapore

Import Procedure in Singapore• Singapore is generally a free port and an open economy. More than 99% of all imports into Singapore enter

the country duty-free. For social and/or environmental reasons, Singapore levies high excise taxes on distilled

spirits and wine, tobacco products, motor vehicles and petroleum products.

• All goods imported into Singapore are regulated under the Customs Act, the Goods and Services Tax (GST)

Act and the Regulation of Imports and Exports Act.

• Singapore levies a 7% Goods and Services Tax (GST). For dutiable goods, the taxable value for GST is

calculated based on the CIF (Cost, Insurance and Freight) value plus all duties and other charges. In the case

of non-dutiable goods, GST will be based on the CIF value plus any commission and other incidental charges

whether or not shown on the invoice. If the goods are dutiable, the GST will be collected simultaneously with

the duties. Special provisions pertain to goods stored in licensed warehouses and free trade zones.

Singapore Flow Chart of Import

Marketing StrategyAlthough Indian Basmati rice is quite popular in world market still in order to increase the market

share of this product in world’s rice market , to capture emerging markets & to compete with our

rivals (Pakistani Basmati rice) following market strategies are adopted :-

Advertisements :- An innovative and creative add created with international market in mind can

increase the sales . Many manufacturers Exporters follow this strategy.

Participating in International trade fairs , international food shows & international food festivals

like food show of New York , Berlin food festival etc is another way marketing.

Packaging of product is another way of marketing the product. An attractive packing of basmati

rice is useful in attracting the customers .

Continue:• Internet is another and cheapest way of marketing the product . Creating your own website and

displaying your product catalogue on it with complete details and giving adds on various sites is

another way of creating market .

• In general, the different stages like,

1. No direct foreign marketing

2. Infrequent export marketing

3. Regular Foreign marketing

For Example of Marketing:

Remarks On Profitability & Saleability Of Basmati Rice• Exporting Basmati rice is a highly profitable business as it is evident from the fact that all those

exporters who were exporting basmati rice have attained the status of export houses , trading

house , star trading houses & super star trading houses .

• Even the government of India has many schemes through which it can extend a financial help upto

75 lakh rupees for starting a food processing unit .

• The basmati rice & its value added products have a huge market . The sale – ability of basmati rice

is very high as it various uses like medicinal use, consumed as food etc .

• Moreover today the living standard of people in India & other countries is improving thus more

& more people are switching to basmati rice . That is why exports of basmati rice in last three

years have increased significantly inspite of global meltdown .