Rice Export Business in India

How to Start a Profitable Rice Export Business from India?

Online Legal India LogoBy Online Legal India Published On 22 Dec 2020 Updated On 15 May 2025 Category IEC

India stands as the world’s leading exporter of rice, supplying premium-quality Basmati and non-Basmati varieties to over 150 countries. Renowned for its rich aroma, distinctive taste, and high nutritional value, Indian rice enjoys strong global demand from countries such as China, the UAE, Iran, the USA, Saudi Arabia, and Bangladesh.

The rice export industry plays a crucial role in India’s economy—contributing billions in revenue, supporting millions of farmers and traders, and strengthening rural livelihoods. To further boost this sector, the Indian government provides various incentives and subsidies, ensuring sustained growth and global competitiveness. With unmatched quality and competitive pricing, India continues to dominate the global rice market.

In this article, we will explore the step-by-step process of exporting rice from India, including legal requirements, documentation, government support, and market opportunities.

Legal Requirement to Export Rice from India

To export rice from India, companies need to follow the below-listed legal requirements:

  1. Company Registration

Businesses should register their company to start a rice export business in India. It ensures legal recognition and allows the business to operate smoothly under government regulations. Before registering the business, the exporter needs to choose the correct business structure, such as sole proprietorship, Limited Liability Partnership, Private Limited Company, Public limited company, and one person company. The registration process for any of the structure is quite simple. One needs to visit the Ministry of Corporate Affairs website and fill out the required forms.

Once done, the applicant needs to submit the form with all the required documents. This registration not only legitimizes the business but also enhances its credibility. However, if the business is not registered, one will not be able to export rice in the international market. When a company is registered, it can easily acquire trade licenses, bank loans, and export approvals. A registered company enjoys better legal protection and gains the trust of international buyers and business partners.

  1. Company PAN card

A PAN (Permanent Account Number) card is essential for tax compliance, financial transactions, and regulatory filings. Without a PAN Card, a company cannot open a business bank account, file taxes, or engage in export activities. To obtain one, companies must apply through the official NSDL portal. They need to submit the required documents and pay the necessary fees. This ensures smooth financial operations and legal compliance.

  1. Import and Export Code (IEC)

The Import Export Code (IEC) serves as a crucial authorization for businesses engaged in global trade. Without this code, no entity can legally import or export goods from India. To secure an IEC, applicants must visit the Directorate General of Foreign Trade (DGFT) website and complete the online registration process. The application must include essential documents such as business identity proof, address proof, and bank details. Once approved, the IEC remains valid for a lifetime. This registration ensures smooth customs clearance, simplifies trade procedures, and helps businesses expand in international markets.

  1. APEDA Registration

APEDA registration is required for exporter who deals in agricultural and processed foods. This certification ensures compliance with export regulations and enhances credibility in international markets. To acquire APEDA registration, businesses must complete and submit an online form within one month after they start the export operations.

If an exporter cannot meet this deadline for a valid reason, the authority may grant an extension. After the businesses apply, along with the prescribed fee, the authority issues the Registration-Cum-Membership Certificate (RCMC).

Once obtained, it provides various benefits, such as financial assistance and market access support. It also provides guidance that will help to maintain international quality standards. Below is the list of a few of the products that require an APEDA registration:

    • Meat and Meat Products
    • Floriculture and floriculture products
    • Honey, jaggery and sugar products
    • Dairy Products
    • Fruits, vegetables and their products
    • Poultry and Poultry products
    • Cocoa and its products
    • Cereal and Cereal Products
    • Confectionary, biscuits and bakery products
    • Alcoholic and non-alcoholic beverages
    • Groundnuts, Peanuts and walnuts
    • Pickles, Papads and chutneys
    • Guar Gum
    • Herbal and medicinal plants.
  1. FSSAI Food License

Businesses that are engaged in the production, storage, processing, distribution or export of food need to obtain an FSSAI License to operate legally in India. The Food Safety and Standards Authority of India (FSSAI) issues this license to ensure that food businesses follow strict safety and hygiene regulations. The license remains valid for a period ranging from 1 to 5 years, depending on the applicant's choice. It is essential for customs clearance.

  1. ISO Certificate

ISO certification confirms that a company adheres to recognized quality standards in food production. It ensures that the business maintains hygiene, safety, and efficiency in its processes. To obtain this certification, companies must meet specific documentation criteria and undergo a well-defined approval process. The application must be submitted under the correct ISO category to match the industry standards. Certification serves as proof of compliance with international quality norms, boosting the company's market reputation. It also helps to gain the trust of consumers and trade partners. It makes it easier for businesses to expand into global markets while they maintain consistent product quality. However, it is not a mandatory document for exporters.

  1. AD Code

AD code stands for Authorised Dealer Code. The exporter’s bank issues the AD code. This code links your export transactions to your bank account. To facilitate customs clearance and generate shipping bills, you must register this code on the ICEGATE portal. Without AD Code registration, customs authorities do not process shipping bills, halting the export process. Additionally, it enables the direct credit of export incentives and refunds to your bank account. Thus, AD Code registration is essential for seamless export operations.

  1. Registration on ICEGATE (Customs Portal)

Registration on ICEGATE (Indian Customs Electronic Gateway) is essential for exporters and importers. It enables the filing of shipping bills, tracking of exports, and claiming of IGST refunds. To register, one must link their Importer Exporter Code (IEC) and Authorized Dealer (AD) Code on the portal. This linkage ensures smooth customs clearance and facilitates the crediting of export incentives directly to the trader's bank account. Without this registration, accessing various export-related services becomes challenging.

  1. GST Registration Certificate

Under GST regulation, an exporter must register their business under GST. However, an exporter needs to provide a Letter of Understanding to be classified under Zero GST invoice. If any exporter pays IGST, they can claim a 100% refund of the amount paid. Recently, the government simplified the refund process to benefit rice exporters across India. Earlier, exporters filed separate refund applications, which caused delays and increased paperwork. Now, the shipping bill itself serves as a refund claim. This process ensures faster tax refunds and improves cash flow for businesses involved in rice exports. It also enhances the ease of doing business and allows exporters to focus on expanding their global trade operations.

Step-by-Step Process to Export Rice Business from India

Listed below is the process that a business needs to follow to start a rice export business from India:

Step 1: Conduct Market Research

To start an export business, the business owners need to understand the global demand. They also need to identify potential buyers. Research shows that countries like Saudi Arabia, Iran, UAE, and the USA import large quantities of rice from India. Business owners need to analyze trade policies, import duties, and consumer preferences in target markets to plan strategically.  

When a business studies its competitors, it becomes easier for it to determine price structures, quality expectations, and market trends.

Other than that, businesses can also take part in international food expos and trade fairs. This also helps businesses strengthen business networks. Businesses also need to establish direct communication with importers, wholesalers, and distributors, which helps businesses ensure better deals and long-term contracts.

Step 2: Ensure Rice Quality & Adhere to Packaging Guidelines

Businesses can obtain superior quality rice from reputable rice mills or farmers. Business owners should ensure that the rice adheres to international quality standards such as ISO 22000, HACCP, and Codex Alimentarius.

Moisture levels, grain size, and aroma determine its suitability for export. Other than that, businesses should also ensure proper packaging of the rice to prevent it from contamination and moisture damage. BOPP bags, jute sacks, or vacuum-sealed packs help maintain freshness.

Business owners should ensure that the labels comply with the regulations of the country to which the rice is imported. It includes the batch number, production date, and expiration date. APEDA and FSSAI guidelines ensure the use of food-grade packaging materials for export

Step 3: Set up Logistics

After the business has completed the above-mentioned process, they need to select a trusted. Logistics provider to ensure smooth transportation. It chooses between airfreight, sea freight, or rail transport based on cost and delivery time. Export freight forwarders manage shipments and handle documentation.

When a business chooses a shipment company experience in food exports.  A shipping line with experience in food exports ensures proper handling. The business needs to store rice under controlled conditions before shipment to prevent damage. Insurance coverage protects against transit losses. Custom house agents (CHA) manage port clearance efficiently.

Step 4: Clearing Customs

Businesses need to complete customs clearance before shipping rice to international markets. Business owners should also remember to include essential export documents such as commercial invoices, packing lists, certificates of origin and more. The shipping company issues a Bill of Lading (B/L) as proof of cargo shipment.

The export contract follows the terms of a Letter of Credit (LC) or advance payment. All necessary documents are submitted to Indian Customs through the ICEGATE portal for clearance. When businesses keep proper records, it ensures compliance with trade regulations and prevents shipment delays.

Conclusion

India continues to lead the global rice export industry with unmatched quality, wide market reach, and government-backed support. However, it becomes difficult for businesses to enter this competitive market. Businesses need to have strict compliance with legal norms and export procedures. In such cases, businesses need a reliable partner to help them throughout the process. Online Legal India is one of the most reliable platforms. Their expert team will help you simplify the whole process.

 

                                                                     

 


Share With :
Author:
online legal india logo
Online Legal India

Online Legal India, a subsidiary of FastInfo Legal Services Pvt. Ltd., is registered under the Companies Act, 2013. Backed by a skilled team of professionals, we offer a comprehensive range of services. We deliver high-quality solutions to individuals, business owners, company founders, corporate entities, and more, addressing their company registration needs and resolving various legal challenges they encounter in everyday lives.

Leave A Comment


Comments

Anjali Malhotra

Commenter

Anjali Malhotra

Commenter