How to export Basmati Rice from India?

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How to export Basmati Rice from India?

Basmati rice is one of the finest varieties of rice one could ever taste. It is cherished by people all around the world, especially for making biryani. If you want to learn how to export Basmati Rice from India, then this article is worth a read!

About Basmati Rice

This variety of rice evolved in the foothills of the Himalayas in what is today Northwestern India and Pakistan. The term “basmati” is derived from two Sanskrit words, vaas (fragrance) and matup (possessing). Since “va” is pronounced as “ba” in north India, Vaasmati became Basmati.

The fragrant Basmati rice has been cultivated in the Indian subcontinent for many centuries. The earliest mention of this variety of rice was made in the Heer Ranjha epic which was composed by the Punjabi poet Waris Shah in the year 1766.

The production of Basmati rice in India takes place in the states of J & K, Himachal Pradesh, Punjab, Haryana, Delhi, Uttarakhand and western Uttar Pradesh. According to Statista, India is the highest exporter of rice worldwide as of 2023/2024. Saudi Arabia, USA, Iraq, Iran, UAE and Thailand are some of the importers of Basmati rice from India. It’s clear that our high-quality Indian basmati rice is in high demand around the world.

Varieties of Basmati Rice

Under the Seeds Act, 1966, 45 varieties of Basmati rice have been notified so far. We have mentioned them in the table below for reference:

Licenses/Registrations required for Exporting Basmati Rice from India

In order to export basmati rice from India, the exporter needs to obtain the following licenses and registrations.

Import Export Code (IEC) Registration

For importers and exporters, Import Export Code (IEC) Registration is a mandatory requirement. In order to obtain IEC registration, an application has to be submitted to the Directorate General of Foreign Trade (DGFT). Along with the application, some necessary documents are required to be submitted for the IEC Registration. 

FSSAI License 

FSSAI License is mandatory for businesses that deal with the import and export of food products. This license is issued by the Food Safety and Standards Authority of India, and comes with a minimum validity period of 1 year and a maximum validity period of 5 years.

GST Registration

GST Registration is mandatory for the export of rice. As per the GST laws in India, the holder of IEC is required to pay IGST on shipping, for which a tax refund can be claimed. Rice exporters can claim such a refund in a simple manner. They do not have to file a separate refund application for the export of goods and services. For the rice exporters, the shipping bill serves as a claim for refund.

APEDA Registration

APEDA Registration is provided by the Agriculture & Processed Food Products Export Development Authority (APEDA). This registration is mandatory for exporters who export one or more of the scheduled products. This registration can be availed through an online application.

There are two lists of scheduled products. We have mentioned them below for reference:

List of The First Schedule Products:

1. Fruits, vegetables and their products. 

2. Meat and meat products.

3. Poultry and poultry products.

4. Dairy products.

5. Confectionery, biscuits and bakery products.

6. Honey, jaggery and sugar products.

7. Cocoa and its products, chocolates of all kinds.

8. Alcoholic and non-alcoholic beverages.

9. Cereal products.

10. Cashew nuts, groundnuts, peanuts and walnuts.

11. Pickles, chutneys and papads.

12. Guar Gum.

13. Floriculture and floriculture products.

14. Herbal and medicinal plants. 

List of The Second Schedule Products:

1. Basmati rice.

It is important to note that for APEDA registration, the exporter needs to obtain IEC first. DGFT-issued IEC is a crucial document which needs to be submitted while applying for APEDA registration.

Conclusion

Given the demand for rice in the world, starting a rice export business from India can be profitable for you. According to National Geographic, rice is a food staple for more than 3.5 billion people worldwide. It is particularly most-consumed in Asia, Latin America, and certain parts of the African continent. If you’re planning to start exporting rice from India, you need to obtain all the necessary licenses and registrations such as GST Registration, FSSAI License, APEDA Registration and Import Export Code. Registrationwala consultants can assist you in obtaining these licenses in a smooth and hassle-free manner! 

Frequently Asked Questions (FAQs)

Q1. Can I export basmati rice from India?

A. Yes, you can export rice from India. However, you need to ensure that you have all the necessary licenses and registrations available with you. GST Registration, Import Export Code, FSSAI License and APEDA Registration are mandatory for exporting rice from India to another country. In addition to this, you need to make sure that your company is legally registered with the Registrar of Companies (ROC).

Q2. What is the most expensive rice in the world?

A. Kinmemai Premium is regarded as the most expensive rice in the world. It is grown in Japan and sells for around $109 per kilogram. 

Q3. Which country is the largest exporter of rice in the world?

A. India

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