How can one Export Rice from India to Kuwait?
Shambhavi Sharma / 2021-04-20 03:30:13

Kuwait, as well as the rest of the Middle East, is an important market for Indian agricultural products. Most of these countries are forced to rely on their neighbours for vital food resources and goods due to a lack of land and a harsh environment. Kuwait has been exporting rice from countries like Thailand, Vietnam, and Pakistan in recent years. India, on the other hand, continues to be a major rice exporter to Kuwait, with the two countries enjoying excellent bilateral trade ties. India has also been working hard to improve these relations and increase the amount of produce it exports to Kuwait. Let's look at how to export rice from India to Kuwait and why this is such a lucrative market.
Exporting Rice to Kuwait
  • Kuwait imports rice primarily from India, Vietnam, Pakistan, and Thailand, with India's export share increasing significantly in recent years. Pakistan has lost market share over the years as a result of poor marketing, fluctuating export prices, and visa restrictions enacted in 2011.
  • Indian rice, on the other hand, has grown in popularity as a result of its high quality and ease of availability. We have been able to win over a significant portion of the industry by consistently selling rice at fair prices.
  • Since India is primarily a rice-eating country, it has been able to expand its market share in foreign markets through effective marketing and diplomacy. As a result, for the past decade or so, we have consistently been one of Kuwait's top ten trading partners.
  • This has made it easier for India to source crude oil from Kuwait, which is the country's fourth largest supplier. The government has also aided in the promotion of rice exports from India to Kuwait by offering various incentives. For example, a new scheme under the merchandise exports scheme provides up to a 5% profit to companies that export non-basmati rice from India.
  • Basmati rice exports from India to Kuwait have increased dramatically in recent years. Because of the superior quality of basmati rice grown in India, it has become a very lucrative business choice that brings in huge profits.
  • Last year, India's rice exports to Kuwait increased by over 11%, reaching a total value of INR 16,930 crores. On a global scale, India exports over 4.5 million tonnes of Basmati rice per year on average, with Middle Eastern countries serving as the primary buyers. Furthermore, rice from India is sold at a premium due to its superior quality and purity.
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Process and Procedure
  • To begin with, any company wishing to export rice from India to Kuwait must first establish itself as a legal entity. After that, they must apply for an Import Export Code with the Director-General of Foreign Trade. The IEC is a ten-digit identification number that enables companies to import and export goods.
  • Entrepreneurs would need to reach out to overseas contacts to find a suitable buyer once the paperwork is completed. They'll have to talk to business people and embassy officials to figure out exactly what the client wants.
  • The company must then obtain the requisite quantity of rice, either from their own fields or from domestic suppliers. This is a crucial step because it aids in the development of the supply chain that will support the company. To ensure that they can fulfil all of the orders they get, entrepreneurs may need to find the right suppliers.
  • If you've found both vendors and customers, you'll need to find a reliable delivery service to ensure that orders are delivered on time. Make sure you choose a reputable provider with all of the required paperwork so you don't have any problems later.
  • To ensure a smooth delivery of the commodity, the consignee in Kuwait must complete all necessary import procedures after the rice arrives in Kuwait. To clear their consignments, consignees must register with Kuwait's Customs and Import Department and provide the required supporting documentation.

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