Why is Cereal Export Profitable in India?

India is one of the world’s top producers and exporters of cereals. They play a crucial role in feeding millions of people globally and are a key part of international trade. This article will explore why cereal export is profitable in India. Understanding these reasons helps us see how Indian contributes to the global food supply while benefiting its economy.

India’s Strength in Cereal Production

India is among the top countries in the world for growing cereals like rice, maize, millets, and wheat. Its varied climate and improved farming methods help farmers produce a large amount of these grains every year. States like Uttar Pradesh, Madhya Pradesh, and Punjab are known for their strong cereal production. India is famous, especially for growing millets, and leads the world in this crop. While people still eat a lot of cereal, there is also a growing use of these grains for processed foods and animal feed. Indian also exports many cereals, sharing its harvest with other countries.

Role of APEDA in Cereal Export

Here is the role of APEDA in cereal export:

• Quality Assurance: APEDA sets strict quality standards for cereal exports like wheat, rice, maize, and millets. It ensures Indian cereals meet international requirements, which helps in building trust with buyers abroad.
• Financial Support to Exporters: APEDA offers financial help for improving packaging, laboratory testing, and attending global trade fairs. This support helps Indian cereals compete in global markets.
• Infrastructure Development: It develops facilities like quality testing labs and certification centres for exports, as these facilities check for export readiness.
• Expanding Global Market Access: APEDA promotes Indian cereals in international markets. It helps find new buyers and reduce dependence on a few countries. Indian cereals now reach countries like the USA, Canada, and the UAE.
• Promoting Value-Added Products: Supports the export of cereal-based products like wheat flour, rice flour, and other milled items. Encourages processing industries to export higher-value products.
• Digital Trade Tools: Manages the Agri Exchange Portal to connect Indian exporters with global buyers, share market intelligence, and help with trade deals and new opportunities
• Training and Education: APEDA conducts training programs for farmers and exporters. Educates them on global standards, packaging, certifications, and export documentation.

Why Cereal Export is Profitable in India?

Cereal exports from India have become increasingly profitable due to a combination of factors that enhance the country’s competitiveness in global markets. Let us discuss why cereal export is profitable in India:

• Rising Global Demand

There is a growing international appetite for cereal, which is driven by increasing populations and a shift towards healthier diets. Indian cereals are known for their quality and affordability and are in demand across various countries, which makes exports a profitable avenue for Indian producers.

• Competitive Pricing

The cost-effectiveness of Indian cereal production allows exporters to offer competitive prices in the global market. This pricing advantage helps Indian cereals to access and sustain in international markets, which enhances profitability for exporters.

• Abundant Production Surplus

India’s diverse climate and extensive agricultural land enable the production of a wide variety of cereals, which include rice, wheat, maize, and millets. This abundance not only meets domestic demand but also creates a surplus that can be exported, which provides additional income for farmers and contributes to the country’s economy.

• Government Support

The Indian government, through agencies like the Agricultural and Processed Food Products Export Development Authority (APEDA), provides support to cereal exporters. This includes setting quality standards, which offer financial assistance, and facilitating access to international markets, which contribute to the profitability of cereal exporters.

• Value addition and Processing

Indian entrepreneurs are increasingly engaging in value addition by processing cereals into ready-to-eat products, flours, and other derivatives. This not only extends shelf life but also caters to specific consumer preferences in international markets, which allows exporters to command higher prices and increase profitability.

• Diversification of Export Markets

Indian cereal exporters are expanding their reach beyond traditional markets, tapping into new regions with growing demand. This diversification reduces dependency on a few markets and spreads risk, which ensures more stable and profitable export opportunities.

• Infrastructure and Technological Advancements

The adoption of modern agricultural technologies has improved the quality of cereals, which makes them more competitive in global markets. These advancements contribute to cost savings and higher profitability for exporters.

How to Start a Cereal Export in India?

The following details include how to start a cereal export in India:

1. Understand the Market

Before starting a cereal export in India, you need to research the global demand for cereals like rice, wheat, maize, and millets. India is a leading producer of these grains, and there is a significant international market for them. You need to understand which countries have a high demand for cereal and what quality standards they expect.

2. Obtain an Import Export Code (IEC)

An IEC is mandatory for any export business in India. You can apply for it through the Directorate General of Foreign Trade (DGFT) by filling the necessary details, submitting the documents, and paying the required fee.

3. Register with APEDA

The APEDA is the primary body overseeing agricultural and processed food exports in India. Registering with APEDA provides access to various benefits, which include financial assistance, training programs, and market development support. You can apply for registration through the APEDA website or the DGFT portal.

4. Ensure Compliance with Quality Standards

International markets have strict quality and safety standards. You need to ensure your products meet these by obtaining necessary certifications like FSSAI for food safety and, if applicable, organic certifications. Proper packaging and labelling are also essential to maintain the product's integrity during transit.

5. Develop a Business Plan

Start by outlining your business objectives, target markets, pricing strategies, and logistics plans. A well-structured business plan will guide your operations and help in securing financing if needed.

6. Establish Supply Chain and Logistics

Identify reliable suppliers for your cereals and establish a robust supply chain. Partner with logistics providers experienced in handling agricultural exports to ensure timely and safe delivery of your products.

7. Explore Financial Assistance

Various government schemes offer financial support to exporters. APEDA provides assistance for infrastructure development, quality certification, and market promotion activities. Staying informed about these schemes will help you get the best out of the available resources.

8. Market Your Products

Participating in international trade fairs and exhibitions can help you showcase your products and increase your visibility in the global market. Use online platforms and the Agri Exchange portal managed by APEDA to connect with potential buyers worldwide.

9. Stay Updated with Regulations

Export regulations can change, so it is essential to stay informed about any updates in trade policies, tariffs, and international agreements that may affect your business.

10. Build Relationships

Establishing strong relationships with buyers, suppliers, and industry stakeholders by networking can lead to repeat business and open doors to new opportunities.

Top Cereals Exported Globally

Here are the top cereals exported globally:

• Wheat: Wheat is one of the most eaten grains in the world. Countries with farmlands and good climates grow a lot of it and send it to other countries that can’t produce enough.
• Corn: Corn is a very flexible grain that can feed both humans as well as animals. The US exports the most corn globally, especially for feeding animals and making food products.
• Rice: Rice is the staple food for more than half the world. India is the top exporter, especially of basmati rice, which is loved worldwide for its aroma and taste.
• Barley: Barley is often used for making beer and feeding animals. It is mostly exported by countries with large fields and cooler climates.
• Oats: Oats are known as a healthy grain as they are good for the heart and digestion. Western countries love oats, and it is also one of their daily food choice, and Canada leads in oats exports.
• Millets: Millets are small, nutrition-rich grains like Ragi, Bajra, and foxtail millet. They are gluten-free, high in fibre, and great for digestion. Popular in traditional Indian diets, millets are gaining global attention for being climate-friendly and ideal for healthy, diabetic friendly meals.

Cereal export is a smart and profitable business in India because of its rich farmlands, strong farming methods, and global demand for quality grains. With government support, modern technology, and growing interest in healthy foods like millets, Indian farmers and exporters have a great chance to earn well. By expanding into new markets and adding value to products, India is not just feeding the world but also boosting its economy in a big way. In this article, you have learned why cereal export is profitable in India. Contact Online Legal India to get assistance in filing an IEC, FSSAI, or APEDA registration from professional experts.