Pakistan is the worlds exporter of brown rice since 2019. The chance for exporters in this area is growing every year. If you are thinking of exporting rice but do not know much about rice this guide will help you understand it.
What is Brown Rice?
To know rice you need to know how rice is processed.
When rice is harvested it has a layer called husk. At this stage it is called paddy. When the husk is removed what remains is rice.
Brown rice is different, from the white rice people eat at home. White rice goes through steps after the husk is removed:
- Thickness grading – sorting grains by size
- Polishing – removing the layer
- Length grading – sorting grains by length
- Color sorting – removing discolored grains
- Final polish – making the rice shiny
Brown rice skips most of these steps. The husk is. Then the rice is left as it is. No outer layer is. No polishing is done. That is why brown rice is called rice. It is simple not processed much and many people who care about health want to buy it.
Popular Types of Brown Rice from Pakistan
Pakistan grows types of brown rice.. A few types are mostly exported:
- Super Basmati Brown Rice. This is the exported type. It makes up 90% of Pakistans brown rice exports.
- Super Kernel Basmati Brown Rice
- Husk Brown Rice. This is paddy rice that still has its husk on.
- D-98 Brown Rice
Other types like Aari-6 Brown Rice, Aari-9 Brown Rice and Sela Brown Rice are also in demand. They are sold in Pakistan and other countries.. The four types listed above make up most of the brown rice that is exported.
The HS Code, for Brown Rice
If you want to export rice you need the right code. This code is used for customs and shipping papers. Brown rice has the HS Code 1006.2.
The Good and Bad of Trading Brown Rice
The good things about trading rice are:
- Brown rice is cheaper to make because we do not have to polish, sort and color-grade it
- A lot of people around the world want to buy rice, especially those who like healthy and organic food
- We can make a lot of money from selling rice compared to selling white rice
The bad things about trading brown rice are:
- Brown rice goes bad faster than white rice because it still has natural oils that can go bad
- We have to store rice carefully and sell it quickly so it does not get bad
Which Countries Buy Brown Rice from Pakistan?
Pakistan sells brown rice to many countries, in Europe, North America and other places. The countries that buy the brown rice from Pakistan are:
- United States
- Netherlands
- Spain
- Italy
- Canada
- Belgium
- Poland
- Denmark
- Portugal
Some countries that buy brown rice from Pakistan are France, Germany, Greece, the Maldives, Mauritius, Mozambique, South Africa and Australia.
Countries that Buy Kinds of Brown Rice
Different countries like to buy different kinds of brown rice. This is useful to know if you want to sell rice to a specific country:
- Husk Brown Rice: Belgium, Denmark, Italy, Poland, Réunion, Spain, the United Kingdom, Greece and the Netherlands like to buy this kind of brown rice
- Super Basmati Brown Rice: Belgium, Denmark, France, Italy, the Netherlands, Portugal, Réunion, the United Kingdom and the United States like to buy this kind of rice
- Super Kernel Basmati Brown Rice: Italy, Spain, the United Kingdom, Belgium, France, Portugal and the Netherlands like to buy this kind of rice
- D-98 Brown Rice: New Zealand and Portugal like to buy this kind of brown rice
Who Are Pakistans Main Rice Rivals?
Pakistan is the exporter of brown rice worldwide.. Other countries also export a lot of rice:
- India – famous for Basmati, Sona Masoori and other long-grain rice
- Thailand – known for Jasmine, Pathum Thani and Hom Mali rice
- Vietnam – exports fragrant long-grain rice
- United States – sends grain, medium-grain short-grain and brown rice abroad
- China – exports Japonica and Indica rice
Despite these countries competing with Pakistan it has been the number one rice exporter since 2019.
Where to Buy Brown Rice?
New exporters often ask if they should buy rice directly from farmers or from a miller. It is best to buy from rice millers, not farmers.
Millers know about quality standards. They. Process the rice. They also pack it properly for export. Buying from farmers and then milling the rice separately can cause quality problems. You might make a little profit when buying from a miller but it is safer especially for new exporters.
Key Places to Buy Rice in Pakistan
- Punjab: You can find rice mills in Sheikhupura, Gujranwala and Hafizabad. These areas grow a lot of Basmati rice.
- Sindh: Shikarpur, Larkana and Jacobabad are known for Aari-9 rice. There are also rice mills, around Karachi.
Investment Required to Export Brown Rice
You need to know that a standard 20-foot shipping container can hold 25 tons of brown rice. So for one container of rice you have to spend at least around PKR 5.5 million.
Remember that people usually do not buy rice in small amounts. Buyers normally buy in quantities. Usually 200 to 500 tons per shipment and sometimes even 600 to 1,000 tons. This means you might need containers for one order so you have to plan how much money you need.
Profit Margins in Brown Rice Export
This is what makes exporting rice so good: you can make a lot of money from it. Typically between 30% and 45% profit.
To give you an idea, one container of rice can make a profit of around PKR 2.5 to 6.6 million. When you sell a lot of rice. Like 200-300 tons or more. You can make a lot of money but you also need to spend a lot.
Payment Terms in the Rice Export Industry
You have to understand how people pay for rice before you start exporting it. There are three ways that people pay for brown rice:
- DP (Documents against Payment): the buyer gets the shipment documents, from the bank and they pay for the brown rice when they accept the documents. This is what most people do. 95% Of the time. And they usually pay within 30 or 60 days.
- LC (Letter of Credit): this is a way for the person exporting the brown rice to get paid because the bank guarantees the payment.
- Advance Payment: the buyer pays for the rice before it is shipped.
Since one container of rice can be worth PKR 5.5-6 million and people often buy many containers at once the person exporting the brown rice can lose a lot of money if they do not get paid. New exporters should try to get paid using LC or Advance Payment especially when they are just starting out. It might take some time to agree on these terms. It is worth it to be safe when you are dealing with a lot of money and brown rice.
Final Thoughts
Exporting rice from Pakistan is a really good chance for people who are new to exporting and for people who have been doing it for a while. This is because people around the world always want to buy brown rice and exporters can make a good profit. Pakistan is already one of the exporters of brown rice in the world. To be successful in this business you need to do a things. You need to buy rice from millers who are honest and will not cheat you. You need to know which types of rice are popular in different countries. You need to make a budget that’s realistic when you are buying a lot of brown rice.. You need to make sure you get paid safely like using a letter of credit or getting paid in advance.
If you are really interested in exporting rice you should also learn about how prices are calculated, how to find buyers and what papers you need to fill out to export brown rice. These are the things that will help you turn exporting rice into a successful business that will keep going for a long time. Brown rice export, from Pakistan is a business and learning about brown rice export will help you succeed in the brown rice export business.
