Case Study on Export Procedure of Rice from India to Russia written by PGDM International Business student at JIMS Rohini. India is the world's largest producer of rice, and Russia is the world's 11th largest importer of #rice. In 2022, India exported about 2.1 million tons of rice to Russia, worth about US$56 million, according to the United Nations COMTRADE database on international trade. The study discusses the export procedure and documents involved in exporting rice from India to Russia. #Riceexports #exportprocedure #Basmati rice www.jimsrohini.org

1. Jagan Institute of Management Studies Technical Campus
Sector 5, Rohini, New Delhi
PGDM(InternationalBusiness), JIMSTechnicalCampus,Rohini,Delhi Vol.1,Year2023
Export Procedure of Rice
from India to Russia

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PGDM(InternationalBusiness), JIMSTechnicalCampus,Rohini,Delhi Year2023
Case 3 Export Procedure of Rice from India to Russia
Ansh Gupta
Synopsis
India is the world's largest producer of rice, and Russia is the world's 11th largest importer of
rice. In 2022, India exported about 2.1 million tons of rice to Russia, worth about US$56 million,
according to the United Nations COMTRADE database on international trade. The study discusses
the export procedure and douments involved in exporting rice from India to Russia.
Keywords: Rice exports, export procedure, Basmati rice
Introduction
India is the world's largest producer of rice, and Russia is the world's 11th largest importer of rice.
The Harmonized System (HS) code for rice is 1006. In 2022, India exported about 2.1 million
tons of rice to Russia, worth about US$56 million, according to the United Nations COMTRADE
database on international trade. The main types of rice exported from India to Russia are basmati
rice and non-basmati rice. Basmati rice is a long-grain rice that is prized for its aroma and flavour.
It is mostly grown in the northern states of India, such as Punjab, Haryana, and Uttar Pradesh.
Non-basmati rice is a shorter-grain rice that is less expensive than basmati rice. It is mostly grown
in the southern states of India, such as Andhra Pradesh, Telangana, and Tamil Nadu.
The trade of rice between India and Russia is governed by a number of agreements, including
the India-Russia Comprehensive Economic Partnership Agreement (CEPA). The CEPA provides
for tariff-free trade in rice between the two countries. The trade of rice between India and Russia
is expected to grow in the coming years, due to the growing demand for rice in Russia and the
increasing availability of high-quality rice from India.
Exporting rice from India to Russia involves a multi-faceted and meticulous process, with each
step playing a pivotal role in ensuring a successful and compliant trade operation and the entire
trade procedure for rice export from India to Russia is estimated to take approximately 85 to 90
Days. Here, we delve into each step-in detail:

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1. Procedure for exporting Rice from India to Russia
OBTAIN EXPORT LICENSE (6-7 Days)
MARKET RESEARCH AND BUYER IDENTIFICATION (1-15 Days)
NEGOTIATE TERMS AND SIGN CONTRACT (1-15 Days)
TRANSPORTATION TO PORT (3-7 Days)
CUSTOMS CLEARANCE IN INDIA (3-5 Days)
SHIPMENT AND DELIVERY TO RUSSIA (30-40 Days)
CUSTOMS CLEARANCE IN RUSSIA (3-5 Days)
QUALITY INSPECTION IN RUSSIA (4-5 Days)
PAYMENT AND SETTLEMENT (As per Contract)
EXPORT DOCUMENTATION (3-5 Days)
Commercial
Invoice
Packing List
Bill of
Lading/
Airway Bill

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2.1. Obtain Export License:
To embark on the journey of exporting rice from India to Russia, securing an export license is
the first essential step. The Directorate General of Foreign Trade (DGFT), operating under the
Ministry of Commerce and Industry in India, is the authority responsible for issuing these licenses.
This crucial document acts as a legal permit, authorizing the exporter to engage in international
trade activities. It serves as a declaration of compliance with Indian export laws and regulations,
ensuring that the rice export adheres to all legal requirements.
2.2. Market Research and Buyer Identification:
Comprehensive market research forms the foundation of a successful export venture. Before
venturing into the Russian market, it is vital to gain a deep understanding of the demand dynamics,
preferences, and potential competitors. The Indian Ministry of Commerce and Industry often
provides valuable trade data and insights to aid in this research. By identifying potential buyers or
distributors, you ensure that there is a market for your product. Additionally, understanding the
trade agreements and bilateral relations between India and Russia, such as the India-Russia Free
Trade Agreement, can be instrumental in market analysis.
2.3. Negotiate Terms and Sign Contract:
Once you've identified a potential buyer in Russia, negotiations commence. This stage involves in-
depth discussions on various aspects of the trade, including pricing, quantity, quality standards,
delivery terms, and payment methods. The resultant contract serves as the legal framework for the
entire transaction. It is critical to ensure that the terms are mutually agreeable, as this document
will guide the entire export process. The clarity and precision of the contract are paramount to
minimize misunderstandings and disputes.
2.4. Export Documentation:
Accurate and comprehensive export documentation is the backbone of international trade. The
documentation process includes preparing essential paperwork such as the Commercial Invoice,
Packing List, Certificate of Origin, and Certificate of Inspection. Each of these documents serves
a specific purpose, such as detailing the contents of the shipment, its origin, and its quality. This
documentation is not only crucial for customs clearance but also for tracking and recording the
trade transaction.
These essential export documents required for exporting rice from India to Russia:
• Commercial Invoice:
The Commercial Invoice is a detailed document prepared by the exporter (seller) and presented to
the buyer. It outlines the financial aspects of the transaction, including the quantity, description,
and value of the rice being exported. It includes information such as the unit price, total price,
payment terms, and currency of the transaction.
The Commercial Invoice serves as the basis for calculating import duties and taxes in Russia. It
also helps the buyer and customs authorities verify the accuracy of the transaction.
• Packing List:
The Packing List is a document that provides a detailed breakdown of the shipment. It lists the
contents of each package, including the type and quantity of rice in each package. This document
aids in identifying and verifying the goods during customs inspections and helps ensure that the
shipment matches the information on the Commercial Invoice.

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The Packing List assists customs officials in Russia in conducting inspections and ensures
transparency in the shipment contents.
• Certificate of Origin:
The Certificate of Origin is a document that certifies the origin of the exported rice. It confirms
that the rice originates from India and meets the necessary criteria to be considered of Indian
origin. The certificate may be issued by a relevant authority, such as a chamber of commerce. The
Certificate of Origin is crucial for complying with international trade agreements and customs
regulations. It determines the eligibility for preferential tariffs under trade agreements and
confirms the product's source.
• Phytosanitary Certificate:
The Phytosanitary Certificate is a critical document issued by the plant quarantine department
of the exporting country. It verifies that the rice being exported is free from pests, diseases, and
other contaminants and complies with the phytosanitary requirements of the importing country
(in this case, Russia). The Phytosanitary Certificate ensures that the rice is safe for consumption
and does not pose a risk to Russian agriculture. It is mandated under international agreements
and is a regulatory requirement for food safety. The Agricultural and Processed Food Products
Export Development Authority (APEDA) in India plays a pivotal role in issuing the necessary
certification, such as the Phytosanitary Certificate. Compliance with quality standards is not just a
legal requirement but also a testament to the integrity of your product.
• Certificate of Inspection:
The Certificate of Inspection is a document issued by an independent inspection agency or
government authority. It confirms that the rice being exported meets the quality standards
and specifications agreed upon in the contract. It may include information about weight, size,
packaging, and other quality parameters. The Certificate of Inspection provides assurance to the
buyer that the rice meets the agreed-upon quality standards. It helps prevent disputes and ensures
transparency in the transaction.
• Bill of Lading/Airway Bill:
The Bill of Lading (for sea shipments) or Airway Bill (for air shipments) is a transport document
issued by the carrier or freight forwarder. It serves as proof of shipment and outlines details such as
the name of the shipper, consignee, description of goods, quantity, and destination port or airport.
It also indicates the terms of shipment (e.g., CFR, CIF, FOB).
The Bill of Lading or Airway Bill is crucial for tracking the shipment, transferring ownership
of the goods, and facilitating customs clearance in Russia. It is also needed for logistics and
transportation purposes.
These export documents are vital for a smooth and legally compliant export process from India
to Russia. They help ensure transparency, compliance with regulations, and adherence to trade
agreements. Exporters must prepare these documents accurately and in accordance with the
requirementsofbothIndiaandRussiatofacilitatethesuccessfulexportofrice.Additionally,various
ministries and departments in both countries may oversee the issuance and verification of these
documents to ensure compliance with trade regulations and agreements.
Apart from the above mentioned documents below is a complete list of other documents
additionally required for exporting rice from India to Russia. The following documents are
required:

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1. Export License issued by the DGFT 6-7 Days
2. Import Export Code (IEC) issued by the DGFT 7-10 Days
3. Phytosanitary Certificate issued by APEDA & Certificate of Inspection 3-4 Days
4. Certificate of Origin issued by the Chamber of Commerce 1-2 Days
5. Bill of Lading issued by the shipping company 2 Days
After vessel
sail
6. Commercial Invoice issued by the buyer 1-2 Days
7. Export Declaration from the customs authorities in India 3-5 Days
8. Import Declaration from the customs authorities in Russia 3-5 Days
9. Customs Clearance Certificate from the customs authorities
in India
3-4 Days
10. Authorized Russian Translation of foreign documents 1-2 Days
11. Company Registration 7-10 Days
12. IEC Registration 7 Days
13. Bank Guarantee or Letter of Credit (LC) As per
Bank
Terms
–30/60/90
Days
14. Electronic Customs Declaration 1 Day
15. Document against Acceptance (D/A) or Bank Payment
Guarantee
1-7 Days
2.5. Transportation to Port:
Once the exporter has obtained all the necessary export documentation, the rice can be
transported from the warehouse to the port. The most common mode of transportation for this
leg of the journey is by truck. The rice is typically loaded onto a truck and driven to the port. The
journey from the warehouse to the port can take several hours, depending on the distance. The
rice is typically transported in sealed containers to protect it from the elements. When the truck
arrives at the port, the rice is unloaded and transferred to a warehouse at the port. The warehouse
is a secure facility where the rice is stored until it is ready to be loaded onto a ship. The loading of
the rice onto the ship is a carefully orchestrated process. The rice is carefully stacked in the hold
of the ship to ensure that it is stable and secure. Once the rice is loaded onto the ship, the ship can
set sail for its destination.

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2.6. Customs Clearance in India:
ThecustomsclearanceprocessinIndiaisconductedbytheIndianCustomsDepartment.Itinvolves
submitting the required documentation and paying any export duties and taxes applicable to the
shipment. The Customs Act, 1962, and other relevant regulations (Government notifications from
time to time) guide this process. Properly cleared customs ensure that the rice is legally permitted
to leave the country, and adherence to these regulations is of utmost importance to prevent any
legal complications or delays.
2.7. Shipment and Delivery to Russia:
With customs clearance completed, the next step is the physical transportation of the rice from
India to Russia. This process necessitates meticulous planning to ensure that the rice reaches its
destination in Russia in optimal condition. Proper packaging and labeling are crucial to safeguard
the quality and integrity of the product during transit. International trade agreements, such as
those between India and Russia, often outline transportation-related guidelines and protocols. The
shipment and delivery phase involves the actual transportation of the rice to Russia, in accordance
with the terms stipulated in the contract. These terms can specify the agreed-upon delivery
method, such as Cost and Freight (CFR), Cost, Insurance, and Freight (CIF), or Free on Board
(FOB), among others. Adherence to these terms ensures that both parties' expectations regarding
the timing and manner of delivery are met.
2.8. Customs Clearance in Russia:
Just as customs clearance is essential in India, it is equally critical in Russia. Russian customs
authorities, acting under various Russian laws and international trade agreements, examine the
documentation and goods to ensure they comply with import regulations. This step ensures that
the rice can legally enter Russia and that all customs requirements are met.
2.9. Quality Inspection in Russia:
Upon the rice's arrival in Russia, it may undergo a quality inspection conducted by Russian
authorities. This inspection verifies that the rice meets the specified standards and is safe for
consumption. Russia's food safety regulations and agreements, such as the Eurasian Economic
Union (EAEU) standards, may govern this inspection. It is a pivotal step to assure the buyer of the
product's quality and safety.
2.10. Payment and Settlement:
The final phase of the export process revolves around payment and settlement. The terms for
payment are typically outlined in the contract, and various mechanisms may be employed,
including a Letter of Credit (LC), Advance Payment, or Open Account. The payment and
settlement phase ensures that the exporter receives the agreed-upon compensation, thus finalizing
the transaction.
By following these meticulously planned steps, exporters can navigate the complexities of
exporting rice from India to Russia while ensuring compliance with a multitude of regulations,
standards, and trade agreements. Collaboration with government departments, industry bodies,
and experienced trade professionals is often essential to successfully navigate this intricate process
and establish a solid presence in the global rice market.

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Time Procedure Chart of Rice export from India to Russia – Maximum time: 89-90 Days
Processes involved in exports of rice to Russia
1. Obtain Export License
2. Market Research and Buyer Identification
3. Negotiation Terms and Sign Contract
4. Export Documentations
5. Transportation to Port
6. Custom Clearance in India
7. Shipment and Delivery to Russia
8. Custom Clearance in Russia
9. Quality Inspection in Russia
10. Payment and Settlement

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In order to export rice from India to Russia, an exporter typically needs to visit at least eight
institutions to obtain the necessary documents and ensure the passage of the rice to its destination.
These institutions are:
• The Directorate General of Foreign Trade (DGFT) to obtain an export license.
• The Indian Chamber of Commerce to obtain a certificate of origin.
• The Plant Protection Association of India (PPAI) to obtain a phytosanitary certificate.
• The shipping company to obtain a bill of lading.
• The customs authorities in India to obtain an export declaration.
• The customs authorities in Russia to obtain an import declaration.
• The bank to obtain a bank guarantee or letter of credit.
• The insurance company to obtain an insurance policy.
• The freight forwarder to arrange for the transportation of the goods.
4. Key Updates and Progress in Export of Rice from India
In recent months, the export of rice from India has undergone significant changes and challenges,
reflecting both domestic and international factors. These developments have substantial
implications for India's role in the global rice market and its efforts to balance domestic food
security concerns with international trade commitments.
4.1 Ban on Non-Basmati White Rice (July 2023)
In July 2023, the Indian government imposed a ban on the export of non-basmati white rice.
This decision was primarily motivated by concerns regarding domestic rice availability and the
resulting upward pressure on food prices within the country. By restricting non-basmati white
rice exports, India aimed to secure sufficient rice supplies for its citizens and mitigate the risk of
food price inflation. This measure has raised questions about its potential impact on global rice
markets, as India has traditionally been a significant exporter of this rice variety.
4.2 Suspension of Basmati Rice Exports Below 1200 MT FOB (August 2023)
Around a month later, in August 2023, India took another noteworthy step by suspending the
export of basmati rice below 1200 metric tons Free on Board (FOB). This move was driven by
similar concerns regarding supply shortages and rising domestic prices for basmati rice. Basmati
rice is a prized commodity known for its quality, and India is a key global supplier of this variety.
The suspension of exports below the specified quantity raised questions about the nation's
reliability as a supplier in the global basmati rice market.
4.3 Food Security and Market Stability Objectives
These policy changes are aligned with India's broader objectives of ensuring food security and
maintaining stability in its domestic rice market. India, as one of the world's most populous
countries, places a high priority on guaranteeing an adequate and affordable food supply for its

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citizens. In light of the challenges posed by supply shortages and rising food prices, these measures
were seen as essential steps to fulfil these objectives.
4.4 Potential for Lift on White Rice Export Ban
While these restrictions are currently in place, there is speculation that the Indian government may
consider lifting the ban on white rice exports in the near future. This could become a possibility if
domestic rice production increases sufficiently to alleviate supply concerns. Such a decision would
depend on the evolving dynamics of the rice market within India.
4.5 Impact on Global Trade Dynamics
These developments in India's rice export policies have garnered significant attention in the global
trade community. India is a major player in the international rice market, and any restrictions on
its rice exports can have far-reaching consequences. The fluctuating export policies and supply
dynamics from India have prompted discussions about the stability and predictability of global
rice trade.
In conclusion, the recent updates and progress in the export of rice from India represent complex
interplay between domestic food security concerns and international trade obligations. The bans
on non-basmati white rice and certain basmati rice exports demonstrate India's commitment to
ensuring the availability and affordability of rice for its citizens. However, these measures also
underscore the challenges faced by a key player in the global rice market and the potential impact
on global trade dynamics. The possibility of a future lift on the white rice export ban adds a layer of
uncertainty to the situation, making it a critical subject of analysis in the context of international
trade and food security.

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5. Value and Quantity of Basmati Rice and Non-Basmati Rice Export from India to Russia
(Source:DGCIS)
Table of Basmati Rice
Basmati Rice
Years Quantity (MT) Value (M USD)
2004-05 94.42 0.09
2005-06 179.2 0.16
2006-07 92 0.09
2007-08 340.56 0.41
2008-09 0 0
2009-10 149.27 0.24
2010-11 138 0.12
2011-12 337.13 0.36
2012-13 789.19 0.92
2013-14 1410 2.09
2014-15 1189.98 1.74
2015-16 1661.71 1.49
2016-17 4136.48 3.35
2017-18 2695.7 2.85
2018-19 3686.7 3.48
2019-20 9098.93 8.67
2020-21 11747.74 9.74
2021-22 6483.92 5.44
2022-23 11381.71 12.44
2023-24 (April-June) 3711.63 4.29

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Value
(M
USD)
Value in Millions of Dollar of Basmati Rice Export from India to Russia
Quantity
(MT)
Quantity of Basmati Rice Export from India to Russia

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Table of Non-Basmati Rice
Basmati Rice
Years Quantity (MT) Value (M USD)
2004-05 3769.02 1.02
2005-06 24776.34 6.34
2006-07 50941 13.34
2007-08 17182 5.52
2008-09 0 0
2009-10 15 0.03
2010-11 0 0
2011-12 9490.01 4.53
2012-13 62250.6 25.86
2013-14 53757 21.8
2014-15 79032 32.08
2015-16 66771 24.25
2016-17 77197 29.01
2017-18 53926.51 22.33
2018-19 71667.3 28.28
2019-20 91639.65 35.02
2020-21 140266.99 53.21
2021-22 118425.2 45.13
2022-23 124979.22 48.9
2023-24 (April-June) 34983 14.3

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Quantity
(MT)
Value
(M
USD)
Quantity of Non-Basmati Rice Export from India to Russia
Value in Millions of Dollar of Non- Basmati Rice Export from India to Russia

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6. Conclusion
In this comprehensive case study, we have explored the intricate trade procedures involved in
exporting rice from India to Russia, shedding light on the meticulous steps and documentation
required to navigate the complex international trade landscape. The journey begins with obtaining
an export license from the Directorate General of Foreign Trade (DGFT) in India, setting the legal
framework for the export process. Market research, buyer identification, and contract negotiation
lay the groundwork for successful trade agreements. Quality control and certification ensure that
the rice meets Russia's stringent food safety standards.
Thedocumentationprocessisacrucialaspectoftheexportjourney,encompassingvariousessential
documents such as the Commercial Invoice, Packing List, Certificate of Origin, Phytosanitary
Certificate, Certificate of Inspection, Bill of Lading or Airway Bill, and others. Each of these
documents serves a distinct purpose, contributing to the transparency, legality, and adherence to
trade regulations throughout the export process.
Customs clearance plays a pivotal role both in India and Russia, involving the submission of
necessary documentation, compliance with import and export regulations, and the payment of
relevant duties and taxes. Transportation and quality inspection ensure the rice reaches Russia in
optimal condition, and the final settlement phase concludes the trade transaction.
Moreover, we have discussed key updates and progress in the export of rice from India, particularly
the bans on non-basmati white rice and certain basmati rice exports implemented in response
to domestic food security concerns and rising prices. These measures, while vital for India's
food security objectives, have raised questions about their impact on global rice markets. The
possibility of future policy adjustments adds an element of uncertainty to the international rice
trade landscape.
In essence, this case study underscores the intricate nature of rice exports from India to Russia,
emphasizing the need for meticulous planning, compliance with regulations, and adaptability in
the face of evolving trade dynamics. The balance between domestic food security and international
trade commitments is a complex challenge, and these developments provide valuable insights into
the delicate interplay of factors that shape the global rice trade.