Category: Blog

Rice is a staple food. More than half of the world’s population relies on rice as a primary source of nutrition due to its long history of cultivation and widespread use. Rice is one of the most widely consumed regular meals and is a cereal grain that is widely grown.

With its roots in Asia, rice has since spread all over the world and has been popular since then, feeding billions of people and influencing their culinary customs.

How is Rice Processed?

The paddy-to-rice process encompasses a series of steps that rice undergoes before reaching your plate.

Rice processing is essential because it turns raw paddy into the rice we eat. Several complex procedures are required to transform the rice paddy crop to the  rice grains that we get in the market which we use for cooking and transform into the white, fluffy, and delicious staple we are all familiar eating.

The goal of paddy processing is to separate the endosperm from the other parts with as little damage as possible, making high-quality rice grains. The main steps in the paddy to rice process are cleaning the paddy, removing the husks from the paddy, and grading and sorting the rice.

The purpose of rice milling systems is to remove the husk and bran layer from the rice kernel, thereby rendering it consumable and free of impurities. 

Steps of Paddy Processing

Paddy processing includes the following steps:

1. Cultivation and Harvesting

Rice cultivation begins with the selection and preparation of suitable land and paddy fields. Farmers carefully level their fields, regulate water levels, and manage pests and diseases to ensure optimal rice production, which typically requires between 3000 and 5000 liters of water per kg.They plant rice seeds that have already germinated or immature seedlings, tending to them in flooded or well-irrigated fields. 

After a maturation period of approximately 3 to 6 months, rice plants are available for harvest. Regionally distinct harvesting techniques include manual cutting with sickles and the use of mechanical harvesters.

2. Separation and Threshing

Once rice plants have been harvested, they are threshed, a procedure that separates the rice grains from the rest of the plant. Traditionally, the harvested crop is beaten against a hard surface or trampled by animals. Modern rice processing facilities utilize mechanized threshers that efficiently separate the grains from the stems. After threshing, rice grains, husks, and other debris must be separated from the resultant mixture.

3. Cleaning and Dehusking

Rice grains must be thoroughly cleaned to remove impurities such as stones, grit, and chaff. This is accomplished using a combination of methods, such as air movers, sieving, and magnetic separation. 

Next, the procedure of dehusking removes the outer husk, exposing the brown rice beneath. Either friction-based methods or abrasive rubber rollers that remove the husk with minimal harm to the rice grain can accomplish this.

4. Polishing and Bleaching

After dehusking, brown rice retains the bran layer, which lends it its characteristic brown hue. Whitening is the next stage in obtaining white rice. Using friction-based devices or abrasive whitening chambers, the bran layer is further removed in this procedure. The partially polished rice is then sent for further refining, where it is subjected to additional friction to achieve the desired sheen and texture. Additionally, polishing removes any residual bran particles and improves the appearance of the rice.

5. Grading and Sorting

After the rice grains have been purified, they are graded and sorted based on their size, shape, and quality. This is essential for business purposes as it ensures consistency and assists in determining the appropriate market value. To effectively automate this process, modern rice processing facilities employ sophisticated machinery such as color sorters, length graders, and density separators.

6. Packaging and Storage

After rice has been graded and sorted, it is packaged and prepared for distribution. Depending on the target market and desired shelf life, packaging may involve different materials, such as plastic bags, jute bags, or bulk containers.

Temperature and humidity control are essential for preserving the quality and preventing the deterioration of rice grains during storage. Large-scale storage facilities typically employ silos or warehouses with ventilation systems to maintain optimal conditions.

Additionally, remember to utilize the rice processing straw and residue.  Straw and chaff are excellent mulches for the garden, as they suppress plants and retain soil moisture.  In addition to being used as mulch, chaff can also be used to create interior seed starting mix.  

Don’t forget that there is actually one more crucial step remaining to process the rice!  Now is the time to prepare and consume some indigenous and refined rice.

Challenges and Innovations in Rice Processing

Like any other industry, the rice processing sector encounters its fair share of difficulties. Waste management, energy use, water usage, and food safety are all issues that need to be addressed. Significant developments and advancements are being made in the rice business with the goal of addressing these issues and advancing sustainable methods of production.

Let’s take a closer look at the difficulties inherent in rice production and the cutting-edge methods now in use to address them.

Management of waste

The discards from the rice-milling operation include the husks, bran, and broken grains of rice. It is vital to properly manage this trash in order to reduce its negative effects on the environment. Biofuels made from rice husks or using them as a renewable energy source to generate electricity are examples of waste management innovations. In addition to being used as a source of animal feed and oil, rice bran is also used as a raw material in the production of bran oil and other rice bran-based products.

Use of energy

Drying the paddy and milling the rice both need a lot of energy during rice processing. Fuel consumption is high when utilizing conventional drying techniques like direct-fired burners. Drying processes used to use a lot of energy, but developments like fluidized bed dryers and heat exchangers have drastically cut that number. These innovations enhance heat conduction and decrease thermal resistance, reducing drying times and drying energy needs.

Use of water

The soaking and cooking phases of rice production need a lot of water. Significant obstacles include water scarcity and environmental worries over water consumption. To combat this, closed-loop water systems, water recycling, and reuse, and improved water management procedures are all being implemented. These developments aid in minimizing water use, lessening the influence on the environment, and guaranteeing sustainable water management.

Losses after the harvest

Rice processing faces significant difficulty due to post-harvest losses such as storage losses, pests, and illnesses. Reduced quality and financial losses for farmers and processors may arise from these losses. Hermetic storage systems and modified atmosphere packaging are two examples of storage innovations that keep rice fresh for longer without sacrificing quality. 

Post-harvest losses are being cut through the use of integrated pest management practices such as the introduction of natural predators and the application of ecologically friendly pesticides.

Food security

It is of utmost importance that the rice-processing chain maintains a high standard of food safety. Consumers may be put at danger by the presence of mycotoxins, pesticide residues, and other pollutants. 

Processors are able to keep an eye on the quality and safety of rice products thanks to advancements in quality control and testing procedures like fast detection techniques and automated inspection systems. Furthermore, risk is reduced and consumer confidence is maintained through the use of good manufacturing practices and adherence to food safety standards.

Developments in technology

Improvements in technology have been essential in helping the rice processing industry meet and overcome its many problems. Consistent quality and increased productivity are made possible by automated milling systems with precise control. Machines with optical scanners and color sorters have improved the efficiency and consistency of the process, resulting in more consistently sized grains of rice. 

In addition, the processing can be monitored in real time- process histories tracked, and its performance optimized with the use of digital technologies, data analytics, and machine learning.

New trends

In addition to these time-honored staples, the rice sector is seeing a number of exciting new developments. Consumers concerned about their health are increasingly interested in organic rice, which is grown without the use of toxic pesticides and fertilizers. 

Popularity of world cuisines has led to an increase in demand for specialty rice as well. Aromatic Jasmine rice and creamy Arborio rice for risotto are just two examples of the many specialty rice kinds available.

Additionally, several convenient and creative treats are being made with rice. Healthy alternatives to fried snacks include rice cakes, rice crackers, and puffed rice snacks. Healthy on-the-go solutions like rice-based energy snacks and morning cereals are on the rise.

EXPORA: Your Gateway to Best Rice Processors in India

When it comes to sourcing quality rice, India stands tall as one of the world’s largest producers and exporters. As the demand for rice continues to grow globally, it becomes crucial to identify reliable rice processors, suppliers, and manufacturers who can ensure the delivery of top-notch products.

Finding dependable suppliers who produce high-quality rice for import-export purposes is a major difficulty in the rice industry globally. Due to reasons such as a lack of knowledge, multiple supplier challenges, language hurdles, physical distance, and differences in business practices, locating such suppliers can be challenging.

By working closely with a network of trusted rice suppliers and manufacturers from all over India, EXPORA guarantees a consistent supply of different rice varieties to cater to the diverse preferences of its customers worldwide.

Conclusion 

Rice processing is a complex and intricate series of steps that transforms unprocessed rice grains into the well-known, globally consumed white rice. Each phase of producing rice for consumers, from preparing the soil to planting to harvesting to storing, is essential. 

We can obtain a greater appreciation for the efforts made to ensure a staple food that sustains and pleasures millions of people every day by learning about the complex procedures involved in rice processing.

The importance of rice cultivation to the global human population cannot be overstated, as one in three people on Earth rely on rice as a staple food, and millions of new people need to be fed every year. Increasing production while reducing environmental impacts from rice farming is a challenging goal for scientists and farmers to achieve. 

Researchers are investing in surveys and research that will one day lead to more disease free and pest-resistant crops, less water consumption during the growing season, and less reliance on the fresh organic fertilizer that contributes to the greenhouse effect.

In addition, the rising popularity of organic rice and other specialty varieties of rice reflects a more informed consumer base concerned about their food’s nutritional value. By adopting these rice products, shoppers may take advantage of the grain’s nutritious benefits and discover a wealth of exciting new ways to include rice into their cooking.

Rice, a globally eaten staple food, is available in a variety of varieties that are cherished and appreciated in various cultures. Basmati rice and non-basmati rice differ significantly in terms of flavors, textures, and fragrances.

Long, medium, or short grains determine whether rice is classified as long, medium, or short. In addition, rice can have a range of textures, including fluffy, buttery, and glutinous. Also variable in color, rice can be brown, white, or red.

These distinct characteristics, such as grain length, texture, and color, play a significant role in determining the use of various rice varieties in recipes, the suitability of rice for particular dishes, and the cooking methods employed. Different cuisines throughout the globe favor distinct rice varieties, which they incorporate into their traditional dishes.

Both basmati and non-basmati rice has a special place in the hearts of consumers among the vast variety of rice. Rice is most adaptable and is used for a variety of dishes and occasions. However, each type of rice possesses distinctive characteristics that distinguish them from one another.

In this blog, we will discuss types of Basmati rice and non- basmati rice, and also will share the exact differences between Basmati rice and Non-Basmati rice.

What is Basmati Rice?

Basmati rice is an aromatic, long-grain rice indigenous to the Indian subcontinentBasmati rice is known as the Queen of Scents because of its alluring aroma, which enhances the tastes and flavor of dishes. It is popular for its distinct aroma, exquisite flavor, long grains and fluffy consistency. Basmati rice is highly regarded for its superior quality and is one of the finest varieties of rice in the world.

Basmati rice is cultivated in the foothills of the Himalayas. Yamuna and Ganga, two rivers, nourish paddy produce. This long and slender rice has a flavorful, creamy texture. The aroma and fragrance are intensified through the aging process.

Basmati rice, like all other types of rice, is available in both white and brown varieties, depending on the milling process. This rice has longer grains than other varieties. It becomes longer rather than glutinous when cooked. The aroma of cooked basmati rice is readily identifiable. There is no other rice in the world that combines these characteristics.

Types of Basmati Rice

• Traditional basmati rice
• P3 Punjab
• Type III Uttar Pradesh
• Hbc-19 Safidon
• 386 Haryana 
• Kasturi (Baran, Rajasthan)
• Muradabadi Basmati 6465
• Basmati 198
• Basmati 217
• Basmati 370 Bihar
• Kasturi
• Mahi suganda
• Pusa 1121
• Pusa 1718
• Pusa 1509
• Pusa 1692
• Pusa 1637
• Pusa 1401.
• Sharbati basmati rice

Roots of Basmati Rice

Basmati rice has a long history in the Indian subcontinent, where it has been grown for thousands of years. The name “Basmati” comes from the Sanskrit word “vasmati,” which meaning “fragrant.” Basmati rice was first mentioned in the sixth century AD.

Basmati rice was largely cultivated in the Himalayan foothills, in present-day India and Pakistan. Rice was traditionally farmed without the use of chemical fertilizers or pesticides using sustainable farming practices. To harvest rice, the farmers relied on natural resources such as river water and monsoon rainfall.

Basmati rice cultivation was not restricted to the Indian subcontinent; it was also farmed in neighboring nations such as Iran, Iraq, and Afghanistan. In reality, Basmati rice was originally called “Iranian rice” since it was exported from India to Persia.

What is Non-Basmati Rice?

Non Basmati rice is any rice variety that is not basmati rice. Rice variants include short-grain, medium-grain, and long-grain rice. 

Non-basmati rice is grown in the Indian subcontinent’s southern areas. These rice varieties are grown in the states of Maharashtra, Andhra Pradesh, and Kolkata. The surface of this rice is sticky. However, after cooking, it can be soft and fragrant depending on the type. 

It is known as a complete food that can be used in a variety of ways to add flavor to any recipe. This rice contains amylopectin, a starchy protein that induces stickiness. The individual grains stay together after cooking, which is why it is utilized in a variety of cuisines.

China, Thailand, Japan, and the United States are among the countries that grow and eat non-Basmati rice. It is a versatile rice that may be found in many different cuisines, including Chinese, Thai, and Japanese.

Types of Non-Basmati Rice

• Sona Masoori
• Jeera Samba
• 100 Broken Rice
• Ponni Rice
• IR 64 Rice
• IR 8 Rice
• Matta Rice
• Idly / Kranti Rice
• PR11 non-basmati rice
• PR14 non-basmati rice
• Parmal non-basmati rice
• Round non-basmati rice

Difference between Basmati and Non-Basmati Rice

There are several differences between basmati and non-basmati rice based on different aspects.

Aspect	Basmati Rice	Non Basmati Rice
Grain Length	Long grains with an average length of 6-7mm.	Varied grain lengths including short, medium, and long grains ranging from 2-7mm.
Aroma	Unique and pleasant aroma	Less or neutral aroma compared to Basmati rice. The aroma varies based on the specific variety.
Texture	Delicate and fluffy texture with separate grains when cooked properly.	Varies based on the variety. Some are slightly sticky when cooked while others have a firmer texture.
Flavor	Mild flavor that enhances the overall dish without overpowering other flavors.	Neutral flavor that absorbs the flavors of accompanying ingredients.
Culinary Uses	Commonly used in biryani, pulao, and fried rice. Complements Indian, Middle Eastern, and Persian cuisines.	Used in various cuisines and dishes. Jasmine rice in Thai and Southeast Asian cuisines, Arborio rice in Italian cuisine (risotto), brown rice as a healthier alternative.
Origin	Primarily cultivated in the Indian subcontinent, particularly in India and Pakistan. Basmati rice is mainly produced in J&K, Himachal Pradesh, Punjab, Haryana, Uttarakhand, and western Uttar Pradesh.	Cultivated in various countries worldwide, including China, Thailand, Japan, the United States, and others. In India, Non-basmati rice is mainly produced in Tamil Nadu, Andhra Pradesh, Bihar, Chhattisgarh, Odisha, Assam.
Popularity	Globally recognized for its quality. Preferred by rice connoisseurs.	Popularity varies depending on the region and variety. Some Non Basmati rice varieties like Jasmine rice or Arborio rice have gained significant popularity.
Price	Generally higher price due to demand and premium quality.	Price varies depending on the variety, with some Non-Basmati rice varieties being more expensive than other Basmati rice types.

Rice Exports from India

India plays a significant role in rice trade, exporting a wide variety of rice to many other nations. India’s rice is one of the most valuable commodities in international trade. The country’s rich farmland, mild climate, and cutting-edge farming methods all combine to produce rice of exceptional quality, which is in high demand around the world.

India is now one of the world’s leading rice exporters, thanks to years of consistent growth in that sector. Both Basmati and non-Basmati rice varieties are available in the country to meet the needs of a wide range of foreign customers. 

India now sends millions of tonnes of rice to countries on every continent every year, and this number is only expected to grow. In 2021–22, India shipped out an all-time-high 21.21 million tonnes (mt) of rice valued at $9.66 billion. That included 17.26 mt of non-basmati (worth $6.12 billion) and 3.95 mt ($3.54 billion) of basmati rice.

It is essential for buyers of Indian rice to work with exporters who have a proven track record and solid footing in the industry. 

EXPORA is an end-to-end solution provider for your rice export and import needs. With our presence across geographies, you get the benefits of demand generation, seamless compliance management, integrated logistics, timely delivery, assured quality and transparent payments. Whether you are an existing rice Exporter, a Manufacturer, or a Brand aspiring to expand globally, we are here to fuel your growth.

Conclusion

Today, Basmati rice is known as one of the finest rice kinds in the world, and its cultivation is governed by stringent quality requirements. It is frequently used in many different cuisines, and its popularity shows no signs of waning.

When it comes to aroma, texture, and flavor, Basmati rice and Non Basmati rice are two distinct varieties of rice. Basmati rice is a type of aromatic long-grain rice that is highly regarded for its subtle taste, light texture, and alluring fragrance. 

However, non-basmati rice encompasses several different types of rice that are not basmati and that have different grain lengths. Basmati and non-basmati rice are both adaptable ingredients that can be used in a wide range of recipes.

FAQ’s

Is basmati rice healthy?

If you think rice is just rice, Well it’s not. Basmati rice is superior to regular rice. Basmati is both gluten-free and low in fat. It has no cholesterol and is very low in sodium. It also contains all eight essential amino acids.

Which rice is healthier: Basmati or Jasmine?

There are three main reasons why basmati rice is a better option for your health than jasmine rice: it has more nutrients, it contains less arsenic, and it has a lower glycemic index.

What is so special about basmati rice?

Basmati rice is low in salt and includes all eight necessary amino acids. It’s cholesterol-free and has a moderate glycemic index, both of which contribute to a more even flow of energy throughout the day.

Why is basmati rice more expensive than normal rice?

Basmati is still one of the most expensive types of rice grown worldwide. This is because of the crop’s relative fragility and the necessity of preserving heirloom grain varieties. The high demand all around the world attests to the quality of our long-grain, thin, and soft grains.

Who is the largest exporter of rice?

As of 2021-22, India exported the most rice in the world, at 21.21 million metric tonnes. 

EXPORA exports a wide range of rice to UAE, GCC, Africa, UK, USA. Be assured of quality, competitive prices and timely delivery. Reach out to us to place orders at contact@expora.in

For smaller companies and individuals shipping items in lesser quantities, international shipping can be a daunting undertaking. Where LCL shipping comes in is at this point. Less than Container Load (LCL) shipping is a common option since it allows individuals and companies to send less than a full container’s worth of products at a more affordable rate.

However, for those unfamiliar with the process, LCL shipping can be overwhelming and perplexing

Everything from what LCL shipping is and why it’s useful, to how it works, and what you can do to ensure a smooth shipment, will be discussed in this blog. If you’re a retailer with a small inventory or just an individual who needs to ship some goods, read on to find out everything you need to know about LCL shipping.

What is LCL Shipping?

Full Container Load means that your shipment will take up the entire space allotted for it in a shipping container. If your shipment does not fill an entire container, it will be marked as LCL. To make better use of the container’s storage space, you can combine your consignment with others if that option is available. 

For companies who don’t need to send an entire container’s worth of goods, LCL shipping is a cost-effective solution. LCL shipping allows shippers to share the cost of a container with other companies transporting smaller loads. 

Less-than-Container-Load (LCL) shipping is beneficial in many situations, particularly when transporting small quantities of cargo. LCL shipping is a cost-effective way to transport smaller shipments that do not fill an entire container.

LCL Shipping vs. FCL Shipping

Distinctions	LCL Shipping	FCL Shipping
Full form	Less than Container Load Shipping	Full Container Load Shipping
Cost	Charged for volume of space goods take up in container	Cost-effective if quantity shipped is sufficient to fill container
Transit Time	Longer time as it is combined with other customers’ shipments	Shorter time as only one shipment in the container
Price   Changes	May vary depending on shipment’s origin, destination, amount of goods and extra services	Volume discounts available but rates may increase due to container demurrage and detention fees
Consolidation Fees	Charged for LCL shipments	Not applicable if FCL shipment fills container
Optimal Strategy	Evaluate shipping needs and work with a reputable logistics agency	Determine optimal strategy with logistics agency based on shipment quantity, cost, and other factors

 

Benefits of LCL Shipping

When using LCL shipping, a number of smaller shipments are combined into one larger one. The benefits of LCL shipping include lower overall costs, greater market access, and less uncertainty. 

Decide about your shipment’s dimensions and weight, as well as the transit duration and local customs laws, before settling on LCL shipping. 

However, LCL shipping does have some drawbacks, such as longer transit times and the possibility of damaged or lost shipments.

Following are some of the LCL shipping benefits that make it an attractive option for shippers:

Cost-effective 

Smaller and medium-sized firms who don’t need to ship an entire container can save money by opting for less-than-container-load (LCL) shipping. Sharing a container with other shippers allows them to save money by not having to pay for a complete container themselves. Businesses can cut their transportation expenditures and shipping prices thanks to this.

Flexibility

Shippers don’t have to wait till they have enough products to fill a container because of LCL shipping. Smaller purchases can be shipped more often, allowing businesses to quickly adjust to changes in the market.

Reduced Risk

There is less potential for loss or damage with LCL shipping. Goods are safer in transit when numerous smaller shipments are combined into one container. Shipping firms that focus on LCL transport also tend to be more adept at handling and securing packages of a more modest size.

Accessible

With low-cost LCL shipping options, even the smallest companies and sole proprietors may compete in global marketplaces. This has the potential to boost revenue and profitability for businesses.

Reduced inventory costs

Using LCL shipping, companies can save money on storage fees and increase profits. LCL shipping allows companies to send smaller quantities more frequently, reducing the need for stockpiling. In addition to lowering the possibility of overstocking, this can help firms save money on storage expenses.

Better carbon footprint

When compared to shipping with full containers, LCL can have a smaller environmental impact. This is due to the fact that LCL shipping companies make better use of empty container capacity and send fewer containers back unopened. As a result, less energy and fuel will be needed to transport the items, lowering the environmental impact.

Disadvantages of LCL Shipping:

Delay in delivery – LCL shipping can lead to delays as multiple shipments need to be consolidated, and customs clearance can be more time-consuming.

Handling risks – The consolidation of multiple shipments into a single container can increase the risk of mishandling and damage during loading and unloading.

Limited space – Space in the container is shared by multiple shippers, which can result in space constraints and limited cargo capacity.

Inefficient packaging – LCL shipping requires careful packaging to ensure that individual shipments are protected during transportation.

Higher cost per unit – Although LCL shipping can be more cost-effective for smaller shipments, the cost per unit may be higher compared to full container shipments.

Is LCL Shipping Right for Your Business?

For companies with fewer or smaller shipments, LCL shipping is the most cost-effective alternative. You may sell to a wider customer base, cut down on storage fees, and protect your inventory from harm. 

However, there are some drawbacks to LCL shipping, such as longer transit times and the possibility of damage or loss of goods. Think about your shipment’s dimensions and weight, as well as the transit duration and local customs laws, before settling on LCL shipping.

Conclusion

For companies with fewer shipments, LCL shipping is the most cost-effective alternative. You may sell to a wider customer base, cut down on storage fees, and protect your inventory from harm. 

Think about your shipment’s dimensions and weight, as well as the transit duration and local customs laws, before settling on LCL shipping. You may avoid the pitfalls of LCL shipping and guarantee on-time delivery by working with a reputable goods forwarder.

FAQ’s

What is LCL shipping full form?

LCL stands for less than a container load.

What is the difference between LCL and FCL shipping?

LCL shipping means that your shipment does not fill an entire container and will be consolidated with other shipments to fill the container. FCL shipping means that your shipment fills an entire container

How is LCL cargo charged?

LCL shipping is charged based on the space your shipment takes up in the container. The more space your shipment takes up, the more you will pay.

What are some tips for using LCL shipping?

Some tips for using LCL shipping include planning ahead, packing your goods properly, choosing a reliable freight forwarder, and understanding customs regulations.

Is LCL shipping right for my business?

LCL shipping is a cost-effective option for businesses that have smaller shipments. However, before deciding on LCL shipping, consider the volume and weight of your shipment, the transit time, and the customs regulations in the destination country.

International trade has been an important part of the world economy for a long time. International trade has become more pervasive and intricate as a result of globalization’s ascent. The use of Incoterms is a crucial part of international trade. International Commercial Terms (Incoterms) is an agreed upon set of procedures for conducting business across international borders. 

The International Chamber of Commerce (ICC) established Incoterms, or “International Commercial Terms,” to standardize the rights and responsibilities of buyers and sellers in international trade.

In this comprehensive guide to Incoterms, we’ll explore what are incoterms, their meaning, their significance, incoterms types, and how they impact international trade and the difference between Incoterms 2010 and Incoterms 2020.

Importance of incoterms in international trade

Incoterms play a critical role in international trade, and their importance cannot be overstated. They provide a standardized framework for international trade that reduces the risk of misunderstandings and disputes between buyers and sellers. Here are some of the importance of Incoterms:

Clarifies responsibilities and obligations

Incoterms help to clearly define the responsibilities and obligations of the buyer and seller in an international trade transaction. This includes who is responsible for arranging and paying for transport, insurance, and customs clearance, as well as who bears the risk of loss or damage to the goods during transport.

Provides a common language

Incoterms provide a common language for buyers, sellers, and carriers to use when negotiating and executing contracts for the transportation of goods. This common language helps to minimize the risk of misunderstandings and disputes, which can lead to costly delays and legal issues.

Streamlines import and export process

Incoterms provide a framework for addressing many of the logistical and operational issues that arise when goods are transported across borders. This helps to streamline the import and export process, making it easier for businesses to trade internationally.

Reduces risk

By clearly defining the responsibilities and obligations of each party, Incoterms help to reduce the risk of disputes and misunderstandings. This can help to minimize the risk of delays and financial losses, which can be especially important for small and medium-sized businesses.

Provides legal certainty

Incoterms provide a standardized set of rules that are recognized and accepted worldwide. This provides legal certainty for all parties involved in the transaction, as it helps to ensure that everyone is operating under the same set of rules and regulations.

Eliminates language barriers

Since Incoterms provide a common language for buyers, sellers, and carriers to use when negotiating and executing contracts for the transportation of goods, it helps to eliminate language barriers that may exist between different parties.

Encourages international trade

Incoterms help to facilitate international trade by providing a set of rules and regulations that are recognized and accepted worldwide. This can help to encourage businesses to trade internationally, as it helps to reduce the complexity and risk associated with cross-border transactions.

Types of Incoterms and their significance

There are currently 11 Incoterms types in use, and they are grouped into four categories—E,F, C, and D—based on the level of responsibility assigned to the buyer and seller. These terms are divided into categories based on the delivery location and who is responsible for covering the cost of each part of the journey. Within each category, there are sub-categories that refer to various scenarios.

When choosing an incoterm, it is important for both buyers and sellers to carefully review each term and select the one that best suits their specific shipment. It is important to consider factors such as transportation costs, insurance coverage, and the risk of loss or damage during transportation. By selecting the appropriate incoterm, buyers and sellers can avoid misunderstandings and disputes, ensuring a smooth and successful transaction.

The 11 types of incoterms: 

    EXW – Ex Works 

    FCA  – Free Carrier 

    CPT  – Carriage Paid To

    CIP –  Carriage and Insurance Paid To 

    DAP – Delivered at Place 

    DPU – Delivered at Place Unloaded

    DDP – Delivered Duty Paid

    FAS – Free Alongside Ship 

    FOB – Free on Board 

    CFR – Cost and Freight 

    CIF –  Cost Insurance and Freight

Incoterms rules for any mode of transport

Delivered Duty Paid (DDP), Delivered at Place (DAP), and Ex Works (EXW) are popular instances of Incoterms norms for any form of transportation. The seven Incoterms rules for any mode of transportation are as follows:

FCA: Free Carrier 

EXW: Ex Works

CPT: Carriage Paid To

CIP: Carriage and Insurance Paid To

DAP: Delivered at Place

DPU: Delivered at Place. 

DDP: Delivered Duty Paid Unloaded

For instance, DPU states that the vendor must deliver the goods to a terminal and bear all risk and transportation expenses until the goods arrive and are unloaded. The client then assumes the risk and expense of transporting the goods from the terminal to their final destination.

DDP indicates that the vendor is responsible for all risks and transportation expenses. Moreover, the seller must approve the goods for export at the port of shipment and import at the destination. In addition, the vendor must pay export and import duties on DDP shipments.

Under Incoterm Ex Works (EXW), the vendor is only required to make the items available for pickup at the seller’s business address or another designated location. Under EXW, the customer is responsible for all risks and transportation costs.

In 2010, the two primary Incoterms categories were modified and classified by modes of transportation. The first classification applies to all modes of transportation, whereas the second applies exclusively to maritime and inland canal transportation.

Incoterms rules for sea and inland waterway transport

The International Chamber of Commerce (ICC) has particular Incoterms rules for inland waterway and marine shipping, such as Cost, Insurance and Freight (CIF) and Free on Board (FOB). The Incoterms for sea and inland waterway transportation are as follows:

• FAS stands for Free Alongside Ship.
• FOB stands for “Free on Board.”
• CFR stands for Cost and Freight.
• CIF stands for Cost, Insurance, and Freight.

For instance, under free on board (FOB) shipment arrangements, the seller would deliver the goods to the buyer aboard a vessel of the customer’s choosing. The complete risk and transportation costs may be borne by the buyer or the seller, depending on whether the items are sold at the FOB shipping point or FOB destination point.

In a Cost, Insurance, and Freight (CIF) clause, the seller is obligated to ship the goods to the buyer at their expense and load them into a specified vessel at a specified port. After the cargo has arrived at the chosen port, the buyer is responsible for transporting it to its warehouse or place of business

Incoterms 2020 vs. Incoterms 2010

The most recent version of Incoterms is Incoterms 2020, which replaced the previous version, Incoterms 2010.

Here are some of the key differences between Incoterms 2020 and Incoterms 2010:

Difference	Incoterms 2020	Incoterms 2010
New Incoterm	DPU (Delivered at Place Unloaded) replaces DAT (Delivered at Terminal)	DAT (Delivered at Terminal)
FCA	Seller responsible for export clearance, buyer responsible for import clearance	No clarification on export/import clearance
Security-related requirements	Parties must provide information on goods, buyer must notify seller of special security measures	No specific security-related requirements
Insurance	Seller required to provide minimum level of insurance coverage for certain Incoterms (CIF and CIP)	No specific insurance requirements
Obligations and costs	Updated to reflect changes in transportation practices and costs	Based on 2010 practices and costs
Renaming of Incoterms	DAP renamed to DPU for clarity	No renaming of Incoterms
Transport-related costs	More detailed guidance on allocation of transport-related costs	Less detailed guidance on transport-related costs
Digitalization	Includes guidance on use of electronic records and documents	No specific guidance on digitalization
Security-related costs	Security-related costs allocated to party requesting security measure	No specific guidance on security-related costs
Transfer of risk	Clarifies transfer of risk and types of risks transferred	Based on 2010 practices and risks

Choosing the right Incoterms for your business

When choosing the right Incoterm for your business, it’s essential to consider the specific needs of your business, the nature of the goods being shipped, and the shipping method. For example, if you’re shipping goods that require special handling, you may want to choose an Incoterm that places more responsibility on the seller, such as FOB (Free on Board) or CIF (Cost, Insurance, and Freight).

Incoterms rules can also impact shipping and logistics. For example, the choice of Incoterm can determine who is responsible for arranging and paying for transportation, insurance, and customs clearance. This has the potential to greatly affect shipping costs and productivity.

Advantages and disadvantages of Incoterms Rules

While they offer many benefits, they also come with a few drawbacks. Here are some of the advantages of incoterms and disadvantages of incoterms:

Advantages of Incoterms

Clarity and consistency

Incoterms provide a clear and consistent set of rules for international trade, making it easier for buyers and sellers to understand their respective obligations and responsibilities.

Reduced risk

The potential for disagreements and misunderstandings is diminished when incoterms are used since they make it clear what is expected of each side. This can be beneficial for the bottom line and for keeping the peace in the workplace.

Increased efficiency

Incoterms help to streamline international trade by standardizing procedures and documentation. This can result in faster processing times and lower costs.

Better cost control

Incoterms help to ensure that all costs associated with the transaction are agreed upon in advance. This can help to prevent unexpected expenses from arising and allow for better cost control.

Flexibility

Incoterms offer a range of options for buyers and sellers to choose from, allowing them to select the terms that best meet their needs.

Disadvantages of Incoterms

Complexity

Incoterms can be complex, particularly for those who are unfamiliar with international trade. This can lead to confusion and misunderstandings.

Legal implications

Legal problems can arise from a failure to comply with Incoterms because they are binding. The ramifications of the selected incoterm must be understood by both the buyer and the seller.

Limited scope 

Incoterms only cover a limited range of issues related to international trade. Other aspects of the transaction, such as payment terms and intellectual property rights, may need to be addressed separately.

Cultural differences

Incoterms may not take into account cultural differences or business practices in different countries. This can create misunderstandings and conflicts.

Lack of customization

Incoterms are standardized and may not be able to fully accommodate the unique needs of certain transactions. This can lead to a loss of flexibility and control.

Conclusion

Incoterms rules facilitate global trade. They are differentiated by modes of transportation into those that utilize any mode and those that utilize water transport exclusively. The terms categorize buyer and seller responsibility, but they do not cover certain aspects of trade, such as the products being sold or future liability responsibilities. It is recommended to utilize Incoterms as a means to clarify agreements, but not as the only basis for the agreement itself.

For businesses engaging in international trade, familiarity with Incoterms is essential. By choosing the right Incoterm for your business, you can ensure that you are allocating responsibilities and risks appropriately. While there are disadvantages of Incoterms rules, their advantages far outweigh the cons of incoterms, making them an essential tool for incoterms in international trade.

Incoterms can be a useful tool for facilitating international trade, but they should be used with care and attention to detail. Buyers and sellers should ensure that they fully understand the implications of the chosen incoterm and seek expert advice if necessary.

FAQ’s

What are Incoterms?

Incoterms (International Commercial Terms) are a standard set of trade terms used in international transactions to determine the buyer’s and seller’s responsibilities and liabilities regarding the delivery of products, the transfer of risk, and payment obligations. The International Chamber of Commerce (ICC) has published these terms.

How many Incoterms types are there?

There are currently 11 Incoterms types that are recognized by the ICC. These are:

EXW (Ex Works), 

FCA (Free Carrier), 

FAS (Free Alongside Ship), 

FOB (Free on Board), 

CFR (Cost and Freight), 

CIF (Cost, Insurance, and Freight), 

CPT (Carriage Paid To), 

CIP (Carriage and Insurance Paid To), 

DAP (Delivered at Place), 

DPU (Delivered at Place Unloaded), 

DDP (Delivered Duty Paid).

What is the purpose of Incoterms?

The purpose of Incoterms is to provide a universal set of rules that buyers and sellers can use to elucidate their respective responsibilities and obligations in international trade. Incoterms reduce misunderstandings, disputes, and litigation that can result from disparities in legal systems, business practices, and cultural norms by defining the obligations of each party at various stages of the transaction. In addition, they help facilitate global trade by promoting standardization and simplification of international transactions and by providing a common language for global merchants.

Agriculture is the pillar of the Indian economy, employing more than fifty percent of the population and contributing approximately eighteen percent to the country’s gross domestic product. India is among the world’s greatest producers of numerous agricultural goods. 

Although being a big producer, India has a very small proportion of the global agriculture trade market. In order to increase its agricultural trade share, the nation faces various obstacles. Nevertheless, there are opportunities that can be utilized to improve the situation.

The global agricultural trade market is very competitive, dominated by wealthy nations. The United States, European Union, Brazil, and China are also the leading players in the worldwide agriculture trade sector. These nations have made substantial investments in research and development, infrastructure, and technology, allowing them to produce high-quality agricultural goods.

In this blog we will discuss the agricultural trade in India and other details. 

Importance of trade in agriculture

Agricultural Trade is crucial for ensuring food security, improving farm income, and fostering rural development. Trade in agriculture also helps to diversify agricultural production. Farmers may have the ability to increase their revenue by participating in agricultural commerce since it gives them the chance to sell their produce in international markets at greater prices. 

Additionally, trade can assist in lowering the overall cost of food for consumers by giving them access to a greater choice of products at rates that are comparable to those offered by competing businesses.

The expansion and development of the agricultural sector are directly tied to the success of the agricultural trade. It also fosters investment in the agricultural industry and the use of contemporary technology and methods, which is another benefit of the programme. Also, commerce helps to meet the rising need for food in both domestic and foreign markets, which is a significant benefit.

International trade in agricultural commodities

International trade in agricultural commodities is highly dynamic and subject to various factors such as climate change, market demand, trade policies, and global events. The COVID-19 pandemic has had a significant impact on the international trade of agricultural commodities, disrupting supply chains and affecting prices.

To navigate through these challenges, countries need to collaborate and establish a transparent and predictable trade regime that supports the growth of the agriculture sector. There are also opportunities for countries to increase their exports by focusing on sustainable agriculture practices, improving supply chain efficiency, and leveraging new technologies such as precision agriculture and digital platforms.

However, the international trade in agricultural commodities faces several challenges, including trade restrictions, price volatility, and market disruptions. India can take advantage of the opportunities in the international trade in agricultural commodities by focusing on the following:

• Quality control – Ensuring the quality of agricultural commodities is crucial for maintaining India’s reputation as a reliable supplier of high-quality products.
• Market intelligence – Access to market intelligence can help Indian farmers to make informed decisions about what crops to grow and which markets to target.
• Collaboration – Collaborating with other countries and stakeholders in the agriculture sector can help to create a more stable and predictable trade environment.
• Innovation – Encouraging innovation in the agriculture sector can lead to the development of new products and technologies, increasing India’s competitiveness in the international agricultural trade market.

Export of agricultural products from India – challenges and opportunities

India is a major producer of rice, wheat, cotton, sugarcane, tea, spices, and fruits, among other agricultural goods. Yet, the country’s part of the worldwide market for agricultural trade is rather small. The export of agricultural products from India is very important for India’s agricultural sector and the economy as a whole. 

When it comes to the export of agricultural products from India, there are both some challenges to be faced and also some amazing opportunities. Lack of quality infrastructure and technology is one of India’s greatest obstacles in its quest to increase its part of the worldwide agriculture trade market. Inadequate storage and transportation infrastructure, inconsistent rules, and insufficient investment in research and development further impede the expansion of India’s agricultural exports.

To overcome these challenges, India must make substantial investments in research and development, modernize its infrastructure and technology, and adopt consistent policies that promote the expansion of the agriculture industry. There are other potential for India to increase its exports by emphasizing product variety and value addition. For instance, India can enhance its exports of processed food items including ready-to-eat meals, fruit juices, and frozen food items.

Challenges and opportunities in import of agricultural products in India

India is also a major importer of various agricultural products such as edible oil, pulses, and fruits. One of the major challenges in import of agricultural products in India is the lack of quality control and certification systems. In addition to this, stringent regulations and import tariffs also hinder the growth of agricultural imports in India.

To overcome these challenges, India needs to establish robust quality control and certification systems, streamline regulations and tariffs, and invest in infrastructure and technology to support the growth of agricultural imports. There are also opportunities for India to diversify its import portfolio and explore new sources of agricultural products.

The import of agricultural products is crucial for India’s agricultural sector and the economy as a whole. However, the import of agricultural products in India faces several challenges. These are some of the challenges and opportunities in agricultural trade in India:

Trade barriers – Tariffs, non-tariff barriers, and other trade restrictions often hamper the growth of agricultural trade in India.

Quality control – Ensuring the quality of imported agricultural products is a significant challenge for India, as there is a lack of a robust certification system for imported products.

Competition – The domestic agriculture sector faces stiff competition from imported products, leading to a decline in the income of farmers and increased dependence on imports.

Infrastructure – Inadequate storage and transportation facilities lead to high post-harvest losses and reduce the shelf life of imported products.

Despite these challenges, there are several opportunities for India in the import of agricultural products. These include:

Diversification – Importing a diverse range of products can help to meet the increasing demand for food in India and provide consumers with a wider range of options.

Technology – The adoption of modern technology, including precision agriculture and digital platforms, can increase the efficiency of the import process and ensure better quality products.

Investment – Increased investment in the infrastructure and storage facilities can reduce post-harvest losses and improve the quality of imported products.

Sustainable imports – Promoting sustainable imports can help to ensure that the imported products meet the highest environmental and social standards.

Conclusion

Agricultural trade is an integral part of the global economy, providing opportunity for farmers, consumers, and companies. By resolving the difficulties and capitalizing on the opportunities, India has huge potential to enhance its part of the global agriculture trade market. 

In order to make the agriculture sector more competitive and resilient, India must prioritize value addition and product variety in both exports and imports.

It is anticipated that international agricultural trade would continue to expand due to factors such as a growing population, shifting eating trends, and rising demand for sustainable and high-quality goods. India can capitalize on these chances to boost its share of the global agriculture trade market and reach its objective of doubling farmers’ income by 2023.

While infrastructure, technology, politics, and regulations provide obstacles to agricultural trade in India, there are also opportunities that can be exploited. By implementing a comprehensive strategy that addresses these problems and capitalizes on possibilities, India can enhance its share of the global agriculture trade market, thereby bolstering its economy and enhancing farmers’ and rural communities’ standard of living.

Millets are a group of small-seeded grasses grown by humans for thousands of years. In recent years, there has been a renewed interest in millet due to its health benefits and sustainability, and India has been at the forefront of this movement.

India has a long history of cultivating and consuming millets, dating back to the Indus Valley Civilization. However, with the introduction of high-yield crops during the Green Revolution, the cultivation of millets declined. In recent years, there has been a growing awareness of the nutritional benefits of millet and its potential for sustainable farming practices. This has led to a resurgence of interest in millet in India and worldwide.

Following the successful completion of India’s request to the Food and Agriculture Organization (FAO), 2023 has designated the International Year of Millets.

With the increasing demand for millets, there is potential for India to expand its exports of these crops to other countries. India is the world’s largest producer of millet. Rajasthan accounts for 28.61 of India’s total millet production. In this blog, we will explore the millet trade opportunities for India, including the potential for increased domestic consumption and export growth.

What are Millets?

So exactly what is millet food?

Millets are a group of small-seeded grains widely grown in India, Africa, and other parts of the world. They are known for their high nutritional value, gluten-free nature, and ability to grow in low rainfall and semi-arid areas. In recent years, millets have gained popularity as a healthy and sustainable food option, and there is a growing demand for millets in both domestic and international markets.

In recent years, millets have gained attention as a health food due to their high protein, fiber, and mineral content. As a result, the demand for millet in the global market has increased, particularly in the health food and organic food sectors.

Types of Millets

There are many types of millets, but here are some of the most commonly known Millets food list:

• Pearl Millet (Bajra)
• Foxtail Millet (Kangni)
• Finger Millet (Ragi)
• Proso Millet (Barri)
• Barnyard Millet (Jhangora)
• Kodo Millet (Kodon)
• Little Millet (Kutki)
• Brown Top Millet (Hari Kangani/ Choti Kangani)
• Sorghum Millet (Cholam)

These millets are known for their high nutritional value, gluten-free nature, and ability to grow in low rainfall and semi-arid areas. They are also used in a variety of cuisines around the world, especially in India, Africa, and China.

Each type of millet has its unique nutritional profile, taste, and culinary uses. For example, finger millet is high in calcium and iron and is often used to make porridge or flatbreads. In contrast, pearl millet is a staple grain in many parts of India used to make rotis, porridge, and other dishes.

The Largest Exporter of Millets in the World

India is the world’s largest millet producer, accounting for about 40 of the global millet production. However, despite being the largest producer, India’s share in the global millet trade is relatively small. Currently, India exports only a small amount of millet to countries such as the USA, Canada, Australia, and European countries.

The major millet varieties in India include sorghum, pearl, finger, foxtail, and little millet. Millets are grown in various regions of India, with the largest producing states being Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu, and Rajasthan.

India has huge potential to expand its millet exports to meet the growing demand in the global market. According to a report by the Confederation of Indian Industry (CII), the global market for millets is expected to grow at a compound annual growth rate of 3.5 between 2018 and 2023. India can tap into this market and increase its millet exports.

Future of Millets Export from India

Due to their health benefits and sustainability, there is a growing demand for millet in international markets. Millets are also gaining popularity among health-conscious consumers in developed countries seeking alternative and healthier grains. Given the increasing demand for millet in international markets, there is a huge potential for millet exports from India.

However, certain challenges need to be addressed to take advantage of this opportunity. For example, there is a lack of awareness about millets among consumers in developed countries, and there is a need to promote millets as a healthy and sustainable food option. Additionally, there is a need to improve the quality and packaging of millet to meet international standards.

Exporting millets can be a game-changer for the Indian economy, especially for small and marginal farmers who are the primary producers of millets. By exporting millets, farmers can get better prices for their products and access international markets, increasing their income and improving their livelihoods. Additionally, millet exports can help to reduce the dependence on traditional cereal crops such as rice and wheat, which require more water and inputs.

Apart from economic benefits, millets also have several health benefits. They are high in protein, fiber, and essential minerals such as iron and calcium. Millets are also low in glycemic index, which makes them a good choice for people with diabetes or those who want to manage their blood sugar levels.

Challenges

However, there are also challenges in expanding millet exports from India. One of the major challenges is the lack of awareness about millets in the global market, which can be addressed through targeted marketing and promotional efforts. Another challenge is the need for better infrastructure and storage facilities to maintain the quality of millet during transportation.

To address these challenges, the Indian government has taken various initiatives to promote millet cultivation and exports. These include the establishment of the Millets Mission to promote millet farming, launching a scheme to promote millet-based processed products, and the inclusion of millets in the public distribution system.

To Sum Up

Millets are an important crop for India and have the potential to become a major export commodity. However, concerted efforts are needed to address the challenges and tap into the growing demand for millet in the global market.

Millets have enormous potential as a healthy and sustainable food option and a source of income for small and marginal farmers in India. With the right policies and support from the government, India can become a major player in the global millet trade, which can benefit both farmers and consumers alike.