basmati rice

Subject - International Business

Group members -Name Roll no.Rathin Bhalla B 03Mandar Kadam B 19Amogh Kulkarni B 24Prafull Mandlik B 26Nikhil Muley B 31

Guided by - Prof. Baldev Raj

Introduction

● “Basmati” is long grain aromatic rice

● Production in India are in the states of J & K, Himanchal Pradesh, Punjab, Haryana, Delhi,

uttarakhand and western Uttar Pradesh

● Varieties - Basmati 1121, Basmati 386 , Basmati 217 , Ranbir Basmati , Type-3 (Dehradooni

Basmati),, Punjab Basmati-1, Haryana Basmati- 1, Kasturi and Mahi Sugandha

● India is one of the top exporter country of rice

● Major Export Destinations (2013-14) : Iran, Saudi Arabia, Iraq, Kuwait and United Arab

Emirates

Reasons for selection of rice for export

● India is the world's second largest producer of Rice

● Rice (including Basmati and Non Basmati) occupy the major share in India's total cereals

export with 64.40% during year 2013-14

● India has exported 37,57,271.44 MT of Basmati Rice to the world for the worth of Rs.

29,299.96 crores during the year 2013-14

Reasons for selecting DubaiJAFZA (Jabel Ali Free Zone Area)

Jafza has been designed with the unique needs of manufacturing and trading companies

At Jafza business will have access to the top commercial companies in the world, and be

supported by specialised free zone benefits including:

● 100% foreign ownership

● 0% corporate tax for 50 years (a concession that is renewable)

● No restriction on capital repatriation

● 0% import or re-export duties

● 0% personal income tax

● No restriction on foreign talent or employees

● Ability to mortgage your premises to a bank or financing company.

● Very good connectivity of road, port, air & rail

● Ready electricity and water infrastructure

● Ready telecommunication infrastructure

Domestic Business Environment

● Environment - India’s weather condition is suitable for rice cultivation

● For agro exports, excise duty is not applicable

● Agri Export Zone (AEZ) - specific geographic region demarcated for setting up agriculture

based processing industries, mainly for export

o AEZ for Basmati Rice - Punjab, Uttaranchal & Uttar pradesh

o Benefit - setting up of laboratory for water, tissue analysis, modernisation of nurseries,

demonstration of crop husbandry practices and training

Agricultural & Processed food products Export

Development Authority (APEDA)

● Infrastructure Development -

o APEDA’s Financial Assistance for Purchase and Installation of Sortex Machine

● Market Development -

o Brand publicity through advertisement, food fairs etc

● Quality Development -

o Assistance for installing quality testing equipments

o Assistance to carry out relevant applied Research & Development activities for export

enhancement

Basmati Export Development Foundation (BEDF)● Objectives - development of high quality Basmati Rice, improvement in productivity,

research and promotional aspects, development and dissemination of technology,

development of forward/backward linkages and infrastructure development in respect of

Basmati Rice

● Facilities -

o Demonstration and Training Farm - recommended practices are demonstrated for both,

production of crop and the seed

o Awareness Workshops for Basmati Growers - during the Kharif season about 15

Workshops are organised

o Laboratory for Testing of Quality and Authenticity - testing parameters like Quality,

Pesticide Residues

Foreign Business Environment - Dubai

Dubai, the business capital city of the Middle East

Arab Gulf states import about 70 per cent of their food needs

The Middle East consumes 4m tonnes of Indian and Pakistani basmati a year

Political - There are streamlined e-services systems in place for the needs of businesses and

individuals through the Government of Dubai’s modern online systems and an ever expanding

network of road and metro connections maintained by Dubai’s Road and Transport Authority

Legal - It is an open market with no exchange controls, quotas or trade barriers

Economical - well serviced by international and local financing and banking institutions

Social - More than 200 nationalities and cultures

A very low crime rate and a fair judicial system

Others - an affluent market with a strategic location at the heart of the world’s richest region

Strategic location that offers the best sea, air, land and rail connectivity

4 P’s

Product - Abeer Basmati Rice

Price - Depend upon market rates. Normally US $ 1500-1700/Ton

Place - Dubai

Promotion - Food fairs in dubai, food shows on television

Entry mode

● Joint venture with Saudi businessman - building a rice distribution hub in Dubai to link

Indian production to consumers in the Middle East

● storage and packaging finishing facility with capacity of 50,000 tonnes of basmati rice per

year

● Going to expand up to 200,000 tonnes per year over the next five years

● We will raise fund from local financing in Dubai as mortgage facility is available

Thank you