Product presentation basmati rice export

PRODUCT PRESENTATION

CASE STUDY ON BASMATI RICE

Submitted By,ANKIT VERMA

INTRODUCTIONAs we know agriculture is one of the strongholds

of Indianeconomy providing direct employment to 50%-

60% peopleworking in country. It forms the basis of many

premier industries of India Including textile , jute and

sugar, riceindustries .Agriculture sector contributes 17.5%

tocountry’s GDP & 30% exports are of agri-

products . In the last 5 yrs this sector showed a growth of 30% &

it willSustain the growth in future as well. Today India

is theleading producers & exporter of various agri-

products , riceBeing one of them. India is 2nd largest producer

of rice afterCHINA & 3rdLargest exporter of rice & largest

exporter ofBasmati rice followed by Pakistan as per FAO.

63%20%

17%

GDP Composition by Sector

ServicesIndustryAgriculture

Based on Rabobank report

GLOBAL SCENARIO ON RICE 2/3 rd of world population consumes rice. Global rice production has fluctuated

between 450 -500 million tons. Global consumption of rice is around 510-

520 tons has been above production in recent years.

Asia is the biggest rice producer , accounting for 90% world’s production & consumption

China is the largest producer of rice, followed by India, Indonesia , Bangladesh , Vietnam etc.

28.80%

21.60%8.60%

6.90%

5.70%

4.60%

4.00%

2.40% 1.80% 1.70% 1.40% 1.30%Major rice producers of the world

ChinaIndiaIndionesiaBangladeshVietnamThailandMyanamarPhilippinesBrazilJapanUSAPakistan

Thailand is the largest exporter of rice ,Vietnam being the second largest and India is the third largest exporter.

Basmati rice accounts for 10-12% of global exports of rice.

Philippines is the largest importer of rice , other rice importing countries are Europe , Japan middle east countries etc..

34.50%

16.50%14.10%

10.60%

6.30%

3.10%2.90%

2.30% 2.10% 1.20% 1.10% 0.90% 0.60% 0.50%

Major Rice Exporting Countries of the world

ThailandVietnamIndiaPakistanUSAChinaEgyptItalyUruguaySpainArgentinaUAEBelgiumMyanmar

INDIAN SCENARIO ON RICE India’s annual rice production for 2008-2009

was 99.15 million tonnes and it is expected to cross 110 million tonnes for 2010.

There are more than 4000 varieties of rice grown in different parts of the country & is grown in both seasons Kharif (80-85%) & Rabi.

India is the third largest exporter of rice and it exports both non-basmati and basmati rice.

India is exporting basmati rice since 1985 on a regular basis but exports of non basmati rice is subjected to some restrictions.

Basmati rice in India Basmati rice means “queen of fragrance “ or the perfumed

one . It is also known pearls of rice Indian Basmati rice is a long grained aromatic rice with unique

, pleasing & appetizing aroma . It is the aroma that gives its novel characteristics unmatched

by any other rice grain anywhere else in the world. Thus it is considered world’s best quality rice .

It is grown in small part of indo gangetic plains at foothills of Himalayas in the north of country . The area in which it is grown is geographically well defined & includes Haryana , western U.P , H.P J&K , Punjab . The climate & soil in this region combines to give Indian Basmati its unique qualities & characteristics . Its unique qualities & characteristics cannot be replicated if grown elsewhere in the world. Thus basmati rice is produced only in India & a small part of Pakistan. Thus it is considered nature’s gift to India .

Due to its characteristics & quality basmati rice commands highest price among all the varieties in the world & also fetches higher prices in international market .

Its export is an important source of foreign exchange of country.

80% of basmati rice produced in India is exported to various countries of the world .

85% of world’s basmati rice is exported from India & remaining 15% is exported from Pakistan .

There are many varieties of basmati rice grown in India .Under section -5 seed act 1966, India has notified 11 varieties of basmati rice . They are basmati 370 , basmati 386 , type-3 , taraori basmati hbc-19 , basmati 217 ,ranbir basmati , pusa basmati-l , Punjab basmati-1 , Haryana basmati -1 , kasturi basmati , mahi sugandha . All these varieties are exported from India . Thus India is a hub of basmati rice & its products .

85%

15%

Major Producers of Basmati riceINDIA PAKISTAN

Reasons for Choosing Basmati Rice

While processing basmati rice various bi- products like husk , bran , broken rice are produced as well. All these products are sold in the market for good prices for instance bran of rice is used to produce rice bran oil which is also been exported to various countries as it is good for heart & is used for cooking

similarly broken rice is sold in domestic market & husk is sold to power companies as they use it to generate electricity. Thus there is no wastage of resources & manufacturer exporter can earn huge dividends .

Since basmati rice is produced only in India & Pakistan both the countries have monopoly on this product as a result exporters dealing in basmati rice earns huge profit .

Basmati rice as already mentioned is a high quality rice & it fetches high price in international market.

Due to limited supply & increasing demand of this grain every year any exporter dealing in this product doesn’t have to worry about its prospects . Its safe & surely a profitable export item .

Product Life Cycle Of Basmati RICE

Introduction

Organic BasmatiRice , Rice Bread

Growth

Super BasmatiRice , ReadyTo Eat Rice.

Maturity Decline

Y-axis:- salesX-axis:- time

Characteristic Features of Product Life Cycle of basmati rice The product life cycle curve for Basmati rice

will never reach decline stage as food grains can never be out of demand .

The sales of the basmati rice and its value added products increases very slowly in introduction stage but it increases very rapidly

in growth stage as result of which in growth stage the graph is linear in shape .

The growth period of PLC curve shall be very large and basmati rice may or may not reach maturity stage.

Free on board price ofBasmati Rice

Marketing StrategyAlthough Indian Basmati rice is quite popular

inworld market still in order to increase the

marketshare of this product in world’s rice market ,

tocapture emerging markets & to compete

with ourrivals (Pakistani Basmati rice) following

marketstrategies are adopted :- Advertisements :- An innovative and

creative add created with international market in mind can increase the sales . Many manufacturers Exporters follow this strategy.

Participating in International trade fairs , international food shows & international food festivals like food show of New York , Berlin food festival etc is another way marketing.

Packaging of product is another way of marketing the product. An attractive packing of basmati rice is useful in attracting the customers .

Internet is another and cheapest way of marketing the product . Creating your own website and displaying your product catalogue on it with complete details and giving adds on various sites is another way of creating market .

Remarks On Profitability & Saleability Of Basmati Rice

Exporting Basmati rice is a highly profitable business as it is evident from the fact that all those exporters who were exporting basmati rice have attained the status of export houses , trading house , star trading houses & super star trading houses .

Even the government of India has many schemes through which it can extend a financial help upto 75 lakh rupees for starting a food processing unit .

The basmati rice & its value added products have a huge market . The sale – ability of basmati rice is very high as it various uses like medicinal use, consumed as food etc .

Moreover today the living standard of people in India & other countries is improving thus more & more people are switching to basmati rice . That is why exports of basmati rice in last three years have increased significantly inspite of global meltdown .

Target Market of Basmati rice

According to APEDA Indian Basmati rice has a huge market & is growing every year . In 2008 -2009 basmati rice was exported to more than 70 countries.

The major importing countries for basmati rice for 2008-2009 are :-

Saudi Arabia UAE IRAN KUWAIT

UK USA Emerging Markets Of Basmati rice During the global recession the exports of

basmati rice to many developed countries got affected as result exporters started exporting basmati rice to developing nations. The government of India also encouraged this policy as result of which a new market for basmati rice has emerged. Few emerging markets are Mauritius , Singapore , Belgium , African countries like Brazil , Ghana etc

BASED ON DGCIS DATA

MAJOR IMPORTERS OF INDIAN BASMATI RICE

SAUDI ARABIAUAEIRANKUWAITUKUSAYEMENOMANCANADANETHERLANDQATAR

Value Additions India has been exporting basmati rice since 1985. Since then India has covered a long way. Many Value additions has been made at various levels in order to increase market share & make exportsof basmati rice more profitable business. These Value additions has also been done in accordancewith changing demand trends and needs of variousconsumers worldwide. Following are the fewvalue additions that has been done in Basmati

rice.

VALUE ADDITIONS IN TERMS OF INNOVATIVE PRODUCTS

Ready to cook rice products like ready to eat vegetable Pulao , Mutter Pulao , paneer tikka

biryani etc. Flavoured basmati rice products in which

seasonings are flavoured to match popular Indian tastes such as ginger-garlic , lemon , masala , tomato . The seasonings will be packed separately

in pouches & sold along with plain basmati rice. Saffron basmati rice (kesar chaval) is another

product becoming popular these days and is being exported in middle east countries .

Rice Bread came out just few year ago. It is now being developed into several type of bread & they are quite

attractive to consumers of Japan despite the fact that they are expensive. In the world market the cost of rice bread is still much greater than wheat bread however, it has the potential to grow in many countries in future . Nowadays gluten-free rice bread (100%rice) has been developed. This type of bread are good for those who are allergic to gluten.

Organic Basmati rice largely exported to E.U countries . This rice has high nutritious value & is grown without any

use of synthetic or artificial pesticides .Thus it is a eco friendly product.

Lastly Instant rice noodles & rice chips are two new products which are still in developing stage & will be soon launched in market .

Ready To Eat Basmati Rice

Flavoured Basmati Rice Products

Flavoured Basmati Rice Products

Various Types Of Rice Bread

Organic basmati rice

Some More Value Added Products of Basmati rice

Some More Value Additions Attractive Packaging of basmati rice so as

to attract customers. Earlier rice was packed in simple gunny or jute bags now it is been packed in jars, polypropylene bags , high value paper bags with vibrant colours like blue , red ,yellow etc .

Vacuum packaging of basmati rice is another value addition which is being done these days. It increases self life of product & also retains aroma of the product.

THANK YOU !