Rice Business

[fazalwahab11375]

$14.99 for this type.

For 9 kg bag which is visible.

[warewolf1]

Not bad... considering the prices of top quality white rice here in Pakistan

[pyromaniac]

Forget about exporting if you dont have your own Rice Mill or a very fertile agricultural land suitable for high quality rice growth. It's very difficult to enter into this area as a lot of big players are already present in this market. Arab Sheikhs have invested huge sums of money in areas having good quality rice growing fields.

[warewolf1]

absolutely right... one of the latest and greatest name is Engro... they procure paddy directly from farmers and export rice. they have a HUGE unit which can produce 3200 bags (100kg each) of parboiled rice daily.

[meniazijee]

Bypassing everyone between the grower and retailer is very difficult but can be done.

As far as export requirements are concerned, in Pakistan, u need local chamber of commerce membership, REAP (rice exporters association of Pakistan) membership, ur brand registration, lots of links and knowhow.

Btw which rice are u trying to sell? White, parboiled or brown? Which variety? And how much are you willing to invest?

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Yes its much difficult to bypass everyone but it will also reward i think so.

at a moment i would like to get knowhow about the qualities, consumption quantities based on different cities etc and export is far away

in my village people grow basmati, karnal and super india so initially i m planning to buy 100 bags after paddy cleaning they may yield to 55 to 60 bags (not sure) and all of this may involve the investment of near to 500k.

[warewolf1]

Technically speaking Basmati is any variety that cooks and gives aroma. Cooking means it's length will increase during boiling. If a variety's length does not increase, we'll say that it's an inferior variety and doesn't cook.

So you will buy 100 bags of super basmati paddy. If each thela weighs 60kg then u should have about 80 bags (50kg each) of final milled rice.

Next question is... what do u intend to do with it? Store it or supply it to shops without aging it?

P.S we are talking about white rice na? Urdu main usay kacha chaawal ya kachi basmati boltay hain.

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[meniazijee]

Technically speaking Basmati is any variety that cooks and gives aroma. Cooking means it's length will increase during boiling. If a variety's length does not increase, we'll say that it's an inferior variety and doesn't cook.

So you will buy 100 bags of super basmati paddy. If each thela weighs 60kg then u should have about 80 bags (50kg each) of final milled rice.

Next question is... what do u intend to do with it? Store it or supply it to shops without aging it?

P.S we are talking about white rice na? Urdu main usay kacha chaawal ya kachi basmati boltay hain.

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yes i m talking about the white one the final outcome.

each thela contains 50kgs of paddy and that may reduce to 40kgs.

Now which one may be favorable?
storing it or
supply it as soon as it cleaned

storing it may block funds and supplying soon may reduce profit margin

[warewolf1]

Well that decision rests with you... if u want to supply to local markets (shopkeepers) then u will have difficulty selling new rice. They prefer old rice (10 months old atleast)

How much is ur total paddy production? Do u plan to use paddy from ur land only or u can also purchase from other farmers/grain market as well?

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[meniazijee]

Well that decision rests with you... if u want to supply to local markets (shopkeepers) then u will have difficulty selling new rice. They prefer old rice (10 months old atleast)

How much is ur total paddy production? Do u plan to use paddy from ur land only or u can also purchase from other farmers/grain market as well?

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I havent nahari land so i have to get it from growers.

[warewolf1]

Well bro... if u want to supply in local markets, ur best bet is to buy 200-250 bags from some factory, through a broker. Buy old rice and supply it. Invest in new rice around june and age it. It u mill it urself, u will have to age it for a few months atleast.

250 bags of 50kg mount to one single gaari (truck). If u buy this much, u will get wholesale rates. Less bags will prove to be expensive and ur margin will decline sharply.

Another option is faisalabad and Multan. U can buy fewer bags from there throughout the year but I personally don't like this route because they have mixing wala rice with a bit higher rates.

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[meniazijee]

thanks @warewolf1 ur suggestions will help me a lot to have a favorable decision. Jazak ALLAH Khair

[YamahaYB100]

I'll not suggest you this business
I have a very close family member who is in rice business since last 8 years he was munshi (clerk) in a rice factory and now he lend that factory for kachi and pakki basmati
You better assit a guy who is in this business and after 1 year khwari you will know in and outs and the markets to do business

[Jamshed_Bond]

growing rice is the best option. just grow rice and sell to factory owners, middle men etc...the process is extremely simple. buy land and grow, thats all. Maybe after 2-3yrs, you'll know enough about the industry and have enough capital to start your own brand and maybe even export.

[pagani]

[I]I can give u some input as I'm a rice grower, in sindh the majority of good quality rice is irri6, some places in upper sindh produce kernel basmati but its not as good as the super kernel basmati produced in Punjab which is the best. Basmati is exported to west and irri 6 goes to the rest of the world, poor countries like Africa in huge amounts. Now for prices the millers play a big game, they are always trying to fool the growers in to giving them their produce for low prices, even lower than the minimum support price the government sets, hopefully this won't happen this time as in previous years some growers got loss. At the moment the minimum support price of irri6 rice paddys 1500 rs per maund (40kg), this is the minimum price the government will give, private ppl and millers will have to give better prices to growers to get their hands on the produce, after they mill it its sold on the international market for 450 dollars per ton. Harvest will be in late nov/early dec.

ps. My advise to u is, buy paddy directly from growers, get it milled from a miller ( yes it can happen if u pay for it) then export it, it will probably cost u 250 dollars per ton in total over here and can sell for 450 dollars a ton by exporting, good profit. But u need capital to start with and contacts, not easy.[/I]

[Jamshed_Bond]

[I]I can give u some input as I'm a rice grower, in sindh the majority of good quality rice is irri6, some places in upper sindh produce kernel basmati but its not as good as the super kernel basmati produced in Punjab which is the best. Basmati is exported to west and irri 6 goes to the rest of the world, poor countries like Africa in huge amounts. Now for prices the millers play a big game, they are always trying to fool the growers in to giving them their produce for low prices, even lower than the minimum support price the government sets, hopefully this won't happen this time as in previous years some growers got loss. At the moment the minimum support price of irri6 rice paddys 1500 rs per maund (40kg), this is the minimum price the government will give, private ppl and millers will have to give better prices to growers to get their hands on the produce, after they mill it its sold on the international market for 450 dollars per ton. Harvest will be in late nov/early dec.

ps. My advise to u is, buy paddy directly from growers, get it milled from a miller ( yes it can happen if u pay for it) then export it, it will probably cost u 250 dollars per ton in total over here and can sell for 450 dollars a ton by exporting, good profit. But u need capital to start with and contacts, not easy.[/I]

tell us regulations regarding export of rice and other crops. I've heard there is a quota or something...

[pagani]

I can't tell u in detail about that as I don't export, but there is a minimum export price set by gov, which at the moment is 450 dollars for milled irri6 for example, plus there is a minimum wieght as well set, I don't know for sure, this language is known by exporters

[warewolf1]

As per my knowledge, there is no quota or minimum export price in Pakistan. India has set a minimum export price for its rice, we have not. Standard export weight of a container is 25ton. U r right about the export of Irri6 to african countries. I'll just add that big markets for Pakistani white rice are Europe, Iran, UAE and Saudi Arabia (although we are losing Iran and Saudia at an alarming speed).

as for costing of rice at $250 per ton..... i dont know how u r calculating....
$250 at 102 rupees = 25,500 per ton. One short ton has 907kg so per KG cost comes to 25,500/907 = 28.11 per kg and 28.11*40= 1124 per maund (40kg)...... now u have said that irri6 paddy is fixed by govt at 1500 per 40kg. how is it possible that paddy costs 1500 and rice costs 1124?
So in my humble opinion, 1500 per maund may be support price of super basmati, not irri6....

I will agree with @YamahaYB100 here that this business is not recommended... last few years have been really bad for rice businessmen. I am talking about people with less capital such as me and you.... Rice business is a very capital intensive business. In addition, U dont have know-how of rice and 5 lac will be easily lost in local market as almost all shopkeepers demand credit.

In case you decide to go with it, I am here to help you in every way I can. Dont hesitate to ask

[sulemanmirza]

As per my knowledge, there is no quota or minimum export price in Pakistan. India has set a minimum export price for its rice, we have not. Standard export weight of a container is 25ton. U r right about the export of Irri6 to african countries. I'll just add that big markets for Pakistani white rice are Europe, Iran, UAE and Saudi Arabia (although we are losing Iran and Saudia at an alarming speed).

as for costing of rice at $250 per ton..... i dont know how u r calculating....
$250 at 102 rupees = 25,500 per ton. One short ton has 907kg so per KG cost comes to 25,500/907 = 28.11 per kg and 28.11*40= 1124 per maund (40kg)...... now u have said that irri6 paddy is fixed by govt at 1500 per 40kg. how is it possible that paddy costs 1500 and rice costs 1124?
So in my humble opinion, 1500 per maund may be support price of super basmati, not irri6....

I will agree with @YamahaYB100 here that this business is not recommended... last few years have been really bad for rice businessmen. I am talking about people with less capital such as me and you.... Rice business is a very capital intensive business. In addition, U dont have know-how of rice and 5 lac will be easily lost in local market as almost all shopkeepers demand credit.

In case you decide to go with it, I am here to help you in every way I can. Dont hesitate to ask

Hi,

Bro we are thinking to invest in exporting rice to Canada, from Pakistan, We talked to some guys and they were asking that confirm in the Can markets that what is the grade and what percent broken rice are used, I don't have any clue about that and I think local Desi store owners won't answer that easily.! can you shed some light on it please..!

[warewolf1]

Sure bro......
when we turn paddy into rice through milling (grinding in layman terms), some of the grains break into small pieces. It is called broken rice. Most people set the machines so that a defined percentage of broken grains go into head rice (complete rice grains) because it increases their profits. Around 10-15% percent presence of broken rice is considered normal in our local markets, depending on the variety. Now u see that the rice u buy from local shop and the packed/branded rice in market is visually different. Branded rice is double polished and so is the export quality rice. It gives the grain extra shine and cooking is also enhanced a bit.

They people u have talked to are rightly asking about grade and percentage of broken rice. They want to know what type of polish u desire, single polish, double polish, or very light polish to make brown rice... What grain length u desire... 7, 8, 9mm or more? what should be the percentage of broken rice in head rice... 5, 6 or 7% or more/less?

If u r planning to sell to a certain Canadian party then that party needs to confirm these specifics...

[sulemanmirza]

Sure bro......
when we turn paddy into rice through milling (grinding in layman terms), some of the grains break into small pieces. It is called broken rice. Most people set the machines so that a defined percentage of broken grains go into head rice (complete rice grains) because it increases their profits. Around 10-15% percent presence of broken rice is considered normal in our local markets, depending on the variety. Now u see that the rice u buy from local shop and the packed/branded rice in market is visually different. Branded rice is double polished and so is the export quality rice. It gives the grain extra shine and cooking is also enhanced a bit.

They people u have talked to are rightly asking about grade and percentage of broken rice. They want to know what type of polish u desire, single polish, double polish, or very light polish to make brown rice... What grain length u desire... 7, 8, 9mm or more? what should be the percentage of broken rice in head rice... 5, 6 or 7% or more/less?

If u r planning to sell to a certain Canadian party then that party needs to confirm these specifics...

You made my day today THanks alot, I will confirm from the retailers, I am looking for people who can sell me export quality rice, I will confirm the specifics as I have a good line in shipping and stuff..!!