If you are looking for a product that does not cost a lot of money to start but people want to buy then you should think about maize. Maize is also known as corn. It is easy to find maize. You do not need a lot of papers to sell it. There are people in Asia and the Middle East who want to buy maize.
In this guide we will tell you everything, about sending maize from Pakistan to countries. We will tell you where to find maize, who is buying maize, how money it costs what papers you need to sell maize and how to make your first sale of maize.
Why Maize Is a Smart Choice to Export
The crops that Pakistan exports are cotton, rice, sugarcane and maize. Maize is the largest crop in Pakistan. Even though maize does not get much attention as rice or cotton it is actually very easy to handle and people always want to buy it.
Many people who export rice also export maize because they come from the places and it is easy to transport them. For someone who’s new to exporting maize is a good choice because it is not too hard to learn about and it does not cost too much money. If you know where to look you can easily find people who want to buy maize.
To give you an idea of how much maize’s exported, in just two months Pakistan exported maize worth about 1 billion rupees. This shows that exporting maize is a business and it is not slowing down.
What Form Is Maize Exported In
When people talk about exporting maize from Pakistan it is good to know what form it takes when it leaves the country. Maize can be exported in three forms:
- Maize kernels, which’s the whole corn just like it is when it is picked
- Maize powder, which is ground corn
- maize, which is processed and packaged
But in reality almost all of the maize that Pakistan exports, about 99.99% is exported as raw kernels just like it is when it is picked. This is news, for new exporters because it means they do not need special equipment to process the maize. They just need to find the maize clean it and ship it.
Where Is Maize Used Understanding The Demand
The reason maize export businesses do well is that a lot of different industries use this crop. Maize is not just used for one thing. It is used in different areas, including:
- Oil, starch and protein industries
- Alcohol production
- Food sweeteners
- Pharmaceutical products
- Cosmetics
- Textile gum
- Packaging materials
But the biggest use of exported maize is for animal feed. Farms that raise animals like cows, goats and chickens need a lot of maize to feed them. A big part of the maize that Pakistan exports is used for this. This one use is the reason why there is such a high demand for maize from other countries.
HS Code For Maize Export
If you are getting ready to export maize you need to know the right HS code to put on your paperwork. Maize usually falls under these codes:
- HS Code 1005.90
- HS Code 1005.10
The code 1005.90 is used the most for the kind of maize that Pakistan usually exports. You should make sure you use the code so that your shipment can clear customs without any problems. Maize export is a business and using the right HS code is important, for maize exporters.
Global Competition Who Else Exports Maize
To make an export plan you need to know what the competition is like. The countries that export the maize in the world are:
- United States of America (USA)
- Brazil
- Argentina
- United Kingdom
- France
- Romania
- Poland
- South Africa
- India
- Russian Federation
It is interesting to see that India is one of the maize exporters in the world. This shows how fast Indias agricultural export sector has grown in the few years. Maize export is something to keep an eye on as Pakistans maize export volume gets bigger.
Where Does Pakistans Maize Go Key Export Markets
Pakistan exports maize to countries including:
- Afghanistan
- Hong Kong
- Indonesia
- Italy
- Kazakhstan
- Kuwait
- Malaysia
- Oman
- Philippines
- Qatar
- Saudi Arabia
- Sri Lanka
- UAE
- United States
- Vietnam
Even though the list of countries that buy maize from Pakistan is long some countries buy a lot more, than others. The biggest buyers of maize are:
- Philippines. They buy the
- Sri Lanka
- Vietnam
- Malaysia
- Hong Kong
If you want to find buyers quickly these countries are a good place to start. The Philippines is a place to start because they already buy a lot of maize from Pakistan. This means you do not have to convince them much and you can make a deal faster. Pakistans maize export is. These countries are already used to buying maize from Pakistan.
Maize Export Prices by Country (Per Kg, USD)
To figure out how money you can make you need to know what people are paying for maize in different places. So here is what maize export prices are like from Pakistan, to the countries that buy the maize from Pakistan:
| Country | Price Range (USD/kg) |
|---|---|
|
Hong Kong |
$0.23 – $0.26 |
|
Malaysia |
$0.20 – $0.26 |
|
Philippines |
$0.24 – $0.26 |
|
Sri Lanka |
$0.24 – $0.28 |
|
Vietnam |
$0.18 – $0.24 |
To figure out how money you will make you need to look at what you pay for something in your area and compare it to what people are selling it for in other countries. The difference after you account for the cost of shipping what you pay to agents and getting it from one place to another in your area is what you get to keep. Maize might not make much money per item as something, like rice but because you can sell so much of it that makes up for it. This is a business where you sell a lot of something and do not make much money on each item but it works well for people who can sell a lot all the time.
Investment Required to Start Exporting Maize
The thing about maize as an export product is that it does not cost a lot to get started. Here is what you need to know about the costs:
- A standard container that is 20 feet long can hold 25 tons of maize.
- It costs around ₹1 lakh to fill one container.
- Buyers usually do not order just one or two containers. They order in bulk. 5 6, 10 Or even 20 containers at a time especially when they are shipping on big vessels.
This means you should plan your investment based on how much maize international buyers order, not just a small test order. Maize exporters often load vessels with maize, which shows how much demand there is for maize export around the world.
Packaging Requirements for Maize Export
Maize export is different from exporting food that people eat. The packaging for maize is actually pretty simple. There are two ways to package maize:
- Packaging: Maize is put into big sacks that weigh 50 kg and then these sacks are loaded into shipping containers.
- Bulk loading: Maize is poured into the container without using sacks especially when it is going to be used as animal feed.
Most of the maize that is exported is used as feed for animals and birds not as food for people. So the rules are not as strict. You do not need to get certificates or follow strict rules for keeping the maize clean. You just load the maize into the container. Seal it. Maize export is really about exporting maize to countries where it will be used as maize, for animals. The maize is loaded into containers. Then the containers are shipped to other countries where the maize will be used.
Sourcing Requirements Cleanliness and Moisture Control
When it comes to maize you have to make sure it meets standards before you can export it. The rules are not that strict. There are two important things you need to check:
1. Remove Foreign Material
You need to make sure the maize is clean before you pack it. This means it should not have any stones, pebbles or other things that should not be there. This is what buyers expect. You can check it yourself without any special equipment.
2. Control Moisture Levels
The amount of moisture in the maize is very important. It should be 14% or less. If it is more than that it is not good enough. Can cause problems when you try to ship it.
Here is how farmers usually control the moisture:
- After they harvest the maize they spread it out in the fields. Let it dry in the sun.
- They use a tool to check the moisture in the grain from time to time.
- They keep drying it until the moisture level’s around 14%.
- When it is dry enough they collect it put it in bags and get it ready to sell.
This way of drying the maize is simple. Does not need any complicated machines. This makes it easy for new exporters to work directly with farmers.
Where Is Maize Grown in Pakistan
If you want to buy maize from farmers you need to know where it is grown. In Pakistan maize is mainly grown in two provinces:
- Punjab. This is where most of the maize is grown 91%.
- Khyber Pakhtunkhwa. This is where the rest of the maize is grown 9%.
Key Maize-Growing Districts in Punjab
- Vehari
- Pakpattan
- Okara
- Kasur
- Sahiwal
- Lodhran
- Faisalabad
- Bahawalpur
Key Maize-Growing Areas in KPK
- Mansehra
- Swat
- Mardan
- Buner
- Shangla
- Peshawar
- Charsadda
These are the places to find maize. You do not have to buy it from someone who exports it already. You can buy it directly from farmers in these areas long as the maize is clean and dry.
A Word of Caution When Sourcing Directly
If you are not sure about the quality of the maize you should ask the farmer about it. Most farmers will tell you the truth, about whether the maize’s clean and dry. If you are still not sure it is better to buy it from a mill or a storage place that has already checked the maize for you.
How to Find Buyers for Your Maize Export Business
I always get asked: how do I find buyers for my maize export business?
The good news is that maize has buyers, especially in the Philippines, Sri Lanka, Vietnam, Malaysia and Hong Kong. To find them you can try:
- International trade websites and directories
- Trade shows and agricultural events
- Contacting importers in your target countries directly
- Networking with rice and grain exporters who know maize buyers
- Using export promotion agencies and trade councils
Since people in these countries like Pakistani maize your job is to show that you’re a reliable supplier.
Calculating Your Export Price
When you find a buyer and a price range you need to calculate your costs before quoting a price. This includes:
- The price you pay for the maize
- Agent fees if you have any
- transportation costs
- Freight charges, for shipping
- Packaging costs if you use bags
Many exporters use a calculator to figure out their costs and quote a competitive price. This helps them protect their profit while being competitive.
Closing the Deal and Getting Paid: A Step-by-Step Guide
When you find a buyer and they want to buy from you here is what you need to do to finish the sale:
Step 1: Decide on Payment Terms
You have two options for getting paid by the buyer:
- Advance Payment. This is simple and easy to handle but big international buyers do not usually use this method.
- Letter of Credit. This is a payment method that banks guarantee and it protects both the buyer and the seller, which is often used when buying and selling things between countries.
Step 2: Make a Proforma Invoice
After the buyer agrees to your terms they will probably ask for a proforma invoice before they pay you. This document says what product you are selling, how much of it the price and the terms of the sale. You can find templates for proforma invoices online fill in your business information and details about the shipment. Then send it to the buyer to make sure everything is okay.
Step 3: Check the Letter of Credit Carefully (If You Need To)
If the buyer wants to pay using a Letter of Credit the bank will send you a draft of the Letter of Credit to look at before they make the final version. This is an important step. You need to read every single term and condition very carefully. If you do not understand something ask your bank or someone who helps you with trade to explain it to you. If you miss something in the Letter of Credit it can cause big problems later so you should always check it very carefully.
Step 4: Register Your Business
Before you can sell things to countries your business needs to be registered properly. This is something you need to do from the beginning and not wait until the minute because you will need your registered business information to fill out other documents, for selling things to other countries. Closing the deal and getting paid by the buyer requires attention to these steps, especially the payment terms and the Letter of Credit to make sure everything goes smoothly for both you and the buyer.
Required Export Documents for Maize
To complete a maize export you need to prepare and send these documents to your buyer:
- Commercial Invoice. This shows details of the transaction. You issue it.
- Packing List. This is a list of items in the shipment. You usually prepare it with your freight forwarder.
- Bill of Lading. Your freight forwarder issues this. It proves you shipped the maize.
- Certificate of Origin. Your customs clearing agent issues this. It confirms where the maize comes from.
- Phytosanitary Certificate. This confirms the maize meets health and safety standards for export.
- Fumigation Certificate. This confirms the maize has been treated to prevent pests.
Each document is important for customs clearance. Missing or incorrect documents can delay your shipment. Working with professionals can help.
People You Need to Work With
When exporting maize you need to work with people:
- Freight Forwarder. They arrange shipping and issue the Bill of Lading.
- Customs Clearing Agent. They handle export clearance and issue certificates.
- Bank. They help with payments and Letters of Credit.
Building relationships, with these people can make exporting maize easier. This is especially true as you make shipments.
Final Thoughts: Is Exporting Maize Right for You
Exporting maize from Pakistan seems like an option for new exporters. Here are some reasons why:
- You don’t need to invest a lot of money compared to products.
- There are not rules to follow since most maize is used for animal food not for people to eat.
- Countries like the Philippines, Sri Lanka, Vietnam, Malaysia and Hong Kong always want to buy maize.
- You can easily buy maize directly from farmers in Punjab and KPK.
- The packaging and handling are simple no complicated processing is needed.
The profit per kilogram of maize might not be high compared to products but you can export a lot of maize at once which means you can still make a good amount of money. If you are willing to find your buyer and learn about export documents then maize export can be a good way to start exporting agricultural products from Pakistan. Maize export has a lot of potential and maize is, in demand so maize export can be a choice.
