IMPORT AND EXPORT BUSINESS
IMPORT AND EXPORT BUSINESS
IMPORT and EXPORT is a very lucrative type of business and considered as most profitable business because of high demand for goods and services in international and domestic markets. Many small startups or ventures opt for import-export business because it generates good revenue and more profits in a limited time period.
This business required license and trade mark and fully authorized by government as many of the business don’t have any trademark and they are fake with their clients. Hence, now it is compulsory to have proper documents and license to start import as well as export business.
Currently we have import and export licenses and we do export of rice, spices and other related products. As India is a country fulled with numerous cultures, traditions, festivals, ethnicities and owing to loaded with a potpourri of food. Delicacies made in India are dominantly made with our staple foods like wheat, rice, pulses, cereals, etc. Every dinner or lunch served in India has some of the other dishes that are made up of rice and wheat. Hence country like India has mass production of rice and consumed in large quantity.
WHAT EXACTLY IS EXPORT BUSINESS
Selling goods from a producing country to another recipient country through shipment is called an export business. Highly potential markets with dynamic investments are a few of the many comprehensive aspects of export business.
STEP BY STEP FOR IMPORT AND EXPORT BUSINESS PLAN
- BUILDING AN ORGANIZATION
Setting up a company with a creative name and unique logo that appeals to the international market is the first step in building of an organization. It includes documentation of the ownership of the firm, whether it is sole proprietorship or joint venture, or partnership.
- BANK ACCOUNT
Under the name of your business, you must open a current account which is linked to your pancard, and all other documents. You must open a current account in the desired nationalised or multi national bank which authorises for foreign exchange.
- PERMANENT ACCOUNT NUMBER
A company participating in foreign trade must possess a Permanent Account Number (PAN) from the Income Tax Department of India. This number is useful in securing all international transactions to India.
4. Import-Export Code
The import-export code is a 10 digit number generated based on the PAN by the Regional Authority of the Directorate General of Foreign Trade (DGFT). Obtaining this number is thus mandatory for anyone who wishes to venture into an import-export business.
5. Acquiring the RCMC
A person venturing into import-export business needs to obtain the Registration cum Membership Certificate to avail benefits and concessions under the Foreign Trade Policy 2015-20. The RCMC has powers to render an entrepreneur with services from the Community boards, Export promotion councils, and other governing bodies.
6. Cover up the risks with ECGC
The highest risk factor that is involved in the export business is non-payment through the buyers. Thus, the Export Credit Guarantee Corporation Limited (ECGC) takes care of the risks relating to foreign trade.
ACTION PLAN TO EXPORT RICE
1. Market Research
Once you have decided to start the rice export business in India, you must learn about the current export trends, market capacity and size, ongoing competition, foreign policies, etc. Thorough research is mandatory before entering foreign waters. Understanding Indian policies and learning more about the foreign country’s norms shall put you in a better position than others.
The next step is to establish a brand name, brand identity and market it dynamically. Creating the visual identity involves building a website that will be of international standards and have all the updated tools attached to it. Keeping it upgraded and updated periodically will attract and attach clients’ confidence in your brand.
- Locating Procurers
Exploring the vast community of farmers, suppliers, vendors, distributors, buyers, dealers, and other middlemen would be the next step. You can choose to procure rice from the suppliers, or directly from the farmers to exclude the middlemen involved. Obtaining rice from the farmers can be highly beneficial as you can get the product at its best quality and minimal rates. You can go a step further and tie-up with a certain number of farmers in a particular area like Telangana, Andhra Pradesh, Kerala, Karnataka, etc. The complete South of India smiles with lush green, watery, rice paddy fields that can be considered as your best option to pick the raw material from. Post this phase, tying up with foreign traders and marketers is also important to take your trade further.