How to Export Basmati Rice from India

Last Updated at: Aug 26, 2022
Export Basmati Rice

India is renowned globally for rice cultivation being one of the largest producers and consumers of rice. The export of basmati rice has been particularly significant and profitable for Indian farmers due to its high demand and superior quality. Between January and October of 2020, basmati rice export stood at 11.95 million tons, whereas in 2019 it was 8.34 million tons. With time, the export of non-basmati rice from India has also risen considerably thanks to people becoming more aware of the options available. Further, Needless to say, basmati rice export is an integral part of our economy and provides financial relief to several large farmers. Hence, let us now look at how to export basmati rice from India correctly to ensure a profit. 

Export of Basmati Rice from India

The previous year was great for the export of basmati rice from India, as Indian nationals stuck in various foreign nations consumed more rice. Additionally, this led to an overall increase in the demand for basmati rice, leading to the export of over 6 million tons of rice. Further, the Middle East and other Arabian countries are the biggest markets for basmati rice exported from India due to their large Indian expatriate population. Overall, India shipped out over 14 million tons of rice around the world, leading to us gaining market share in the global rice export industry. The major importers of Indian basmati rice are as follows

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

Likewise, despite facing severe competition from other countries, India still ranks second when it comes to the global list of rice exporters. Here’s a quick look at the volume of basmati rice exported from India to other nations in FY 2019-2020. Additionally, in the table given below, the quantity provided is in metric tonnes, whereas the value of the exports has been denoted in lakhs.

Sl No Country Quantity Value
1 Iran  1,319,154.92 884,636.07
2 Saudi Arabia 974,125.09 678,807.04
3 Iraq 465,890.33 307,805.67
4 UAE 208,519.39 148,699.97
5 Kuwait 197,103.99 142,636.90


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Export of Non-Basmati Rice from India

The export of non-basmati rice from India has been steadily growing in recent years and witnessed a considerable spike in 2020. According to data provided by the Indian government, we managed to export 61% more non-basmati rice in 2020 when compared to the previous year. In 2020, India exported 7.6 million tons of non-basmati rice making it the best year for the export of such variants. Additionally, this is great news for farmers across the country as it enables us to ship out more variants of rice to the global market. When it comes to major markets for non-basmati rice, Africa, and certain areas of the Middle East stand out. 

How to Export Basmati Rice from India

  • First and foremost, entrepreneurs will need to complete the registration or incorporation of their company. The business owners will need to determine which type of legal entity to incorporate as and submit the application for the same via the SPICe form with the Ministry of Corporate Affairs.
  • After obtaining the incorporation certificate, the entrepreneurs must apply for and obtain a company PAN card via the NDSL’s official portal.
  • The next mandatory requirement that companies need to fulfil is obtaining the Import Export Code from the Directorate-General of Foreign Trade. 
  • Companies that deal with scheduled products such as those mentioned below will need to obtain an APEDA Registration.
  1. Floriculture products
  2. Meat products
  3. Honey, jaggery, and sugar products
  4. Poultry products
  5. Dairy products
  6. Fruits and vegetables 
  7. Cocoa products
  8. Confectionery items
  9. Biscuits and bakery items
  10. Groundnuts, peanuts, and walnuts
  11. Cereal products
  12. Alcoholic and non-alcoholic beverages
  13. Pickles, papads, and chutneys
  14. Herbal and medicinal plants
  15. Guar gum
  • Once the company has all the documents in place, they can start looking for suppliers, vendors, and buyers. They can choose to produce their own rice or procure the same from farmers by establishing an efficient supply chain.
  • Lastly, the company will have to contact a reputed shipping service to ensure that they are able to fulfil all the orders they undertake. 

Documents Required to Export Basmati Rice from India

  1. Registration-cum-membership certificate from the DGFT
  2. Import Export Code 
  3. FSSAI license
  4. ISO certification to ensure quality compliance
  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. Memorandum Of Association and Articles of Association
  12. Customs documents, such as a bill of lading and customs entry document 
  13. Bank account statements and other financial information
  14. Copy of a cancelled cheque 
  15. Udyog registration certificate 

While you have the option to complete the registration yourself, it would be a lot easier if you took the help of legal consultancy services. Vakilsearch provides all these services and more and can help you set up a rice exporting business with ease. Further, our team of legal experts will understand your unique requirements and do the needful to ensure that you can start your business at the earliest. So, in case you have any legal queries, make sure you reach out to Vakilsearch for assistance.