Trade Laws

A00273
September 25, 2021
Jalaram Rice Mills Private Limited: Vishal H Mistry’s

Dilemma
In December 2019, Vishal H Mistry, the Managing Director of Jalaram Rice Mills Private
Limited (JRMPL), was wondering whether to accept the recent order of rice from a Russian
customer. He had received an order of 1,000 metric tonnes. The order was quite high compared
to his usual order sizes. This customer had placed an order with JRMPL for the first time.
However, Mistry had discontinued receiving bulk orders because of the lousy experience of
rejection faced from one of the Russian clients in 2017. In 2018, he had exported about 260
metric tonnes, almost half the total export size in 2017 (520 metric tonnes). He was losing his
hold on the Russian market. However, this deal would help him gain a strong foothold in the
market and earn more profit. A bulk order was always risky due to its uncertain nature, and the
exporter would incur a massive loss if the buyer refused the order. His market research team
explained to him that the order was from a firm with a good market reputation and doing
business for the last 20 years.
Still, he was unsure about the order. He was thinking, “What would happen if the order were
rejected after reaching its destination?” In that case, a hefty amount of his money would be at
risk. Also, the formalities of bringing the order back to India and the customs-related issues and
costs put him at high risk. Even re-directing it to some other markets was time-consuming and
costly.
He said:
Exporting smaller quantities is always safe. You can sell a smaller quantity to many
buyers or the same buyer repeatedly instead of selling a huge quantity at a time. Keeping
more buyers would help you in diversifying your risk. If a bulk order is rejected due to
either product-standard-related issues or the buyer’s change of mind, then re-directing it
to another market or bringing it back to India for domestic sale or re-export is risky and
time-consuming. Also, considering the perishability of rice, the quality of the product
will get deteriorated if it takes so much time to resell.
When asked about the loyalty of the clients, he said:
Some clients are loyal. However, the market is very competitive and price sensitive. We
face competition from both other exporters of India and exporters from countries outside
India. Even your regular buyers may switch to another exporter for a low price. In the
end, it is the buyers’ market. We, at times, sell at a price less than our breakeven to match
the demand and stay competitive in the market. The exchange-rate fluctuations are also
adding uncertainty to sales as the depreciation of currency makes the product cheaper,
whereas appreciation makes the product expensive. We may not be in a position to
Prepared by Professor Poornima Varma and Sanjay Kumar Jena, Case Writing Research Associate (Case Centre),
Indian Institute of Management Ahmedabad.
Cases of the Indian Institute of Management Ahmedabad are prepared as a basis for class discussion. They are not
designed to present illustrations of either correct or incorrect handling of administrative problems. Some figures in
the case are disguised.
© 2019 by the Indian Institute of Management Ahmedabad.
This document is authorized for use only in Dr.Areej Aftab Siddiqui's Global Trade Regulations and Documentation at Institute of Management Technology - Dubai from Jul 2022 to Jan 2023.
2 of 19 A00273
adjust the price when the exchange rate fluctuates. We face a greater risk when there is
an appreciation of Indian currency, and if we do not reduce the price, we may lose the
market.
India faced fierce competition from other countries like Thailand and Pakistan. India was losing
in the African market to Thai and Chinese exporters who offered low-priced rice. i The rise in
the minimum support price (MSP) 1 for paddy and the strengthening of the Indian currency
against the dollar made the Indian nonbasmati rice costlier in the world, which, in turn,
declined the nonbasmati shipments. The nonbasmati export from India was declined to USD
294 million in April–May 2019 from USD 652 million in April–May 2018. India’s nonbasmati
rice was overpriced by 5–10% compared to that from exporters of Vietnam, Myanmar, Pakistan
and Thailand. China’s entry with a lower price made the competition intense for the Indian
exporters.
Additionally, Mistry was not a very large exporter of rice; so, he might be a price-taker in the
global market. Only those with some monopoly could decide the selling price in the
international market. If the quantity exported to the international market were negligible, the
exporters would hardly have the price-fixing ability; instead, they would be forced to treat the
world market price as given. This was especially true if the price elasticity of demand was very
high in the importing markets. The higher price elasticity of demand implied that a slight price
increase would lead to a greater reduction in quantity demanded. As Mistry already pointed
out, the Russian market was facing the high price elasticity of demand, which is why he opined
that Russian customers were price sensitive. This was also attributable to the fierce competition
Mistry was facing due to the presence of several exporters of rice in the Russian market.
To meet the quality standards (as the quality was another reason for product rejection), he was
stringent about the product quality and always tried to keep the product adulteration free. He
recalled his previous experience of 2014 when the shipment was rejected because a tiny weevil
was found in the product at the destination, Port Elizabeth of South Africa, and the exported
quantity was huge. He recollected another incident when a buyer in Africa negotiated the price
because of the sudden price fluctuation due to an appreciation of the Indian currency against
that of the importing country. The buyer denied purchasing the product and claimed to have
bought it at a lesser cost from another country. In both the above situations, Mistry had rushed
to South Africa immediately to find an alternative. He had a risk of losing about INR 7 million,
the value of his exported product. He could not even think of the option of bringing it back to
India. Rice import was somehow banned in India.
As per Section 20 of the Customs Act, 1962, the regular import duties and restrictions would be
applied to every re-imported product. The import duties were higher for rice. The freight costs
for each container for South Africa and Russia were about USD 750 and USD 900, respectively.
While bringing the product back to India due to rejection in the importing market, the exporter
needed to convey the reason to various departments such as the customs department, shipping
companies, financial institutions and others for getting exemption on import duties. The
exporter had to collect the Rules of Origin (ROO) 2 certificate while bringing back the product to
India. Bureaucratic hurdles increased the transaction costs as the exporter was required to prove
1 Minimum support price (MSP) is the price at which the government buys agricultural crops from the farmers.
2 Rules of Origin (ROO) is a certificate that shows the national source of a product.
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to several concerned departments that the product was originally exported from India and
rejected due to certain reasons; hence, bringing it back was tedious. After getting the clearance
from the parties, the exporter had to pay a substantial amount of money for logistics, freight
and other handling charges from the foreign country port to India. The whole importing
process would take more time than that of the normal export process. Rice always had a risk of
getting affected by moisture and climatic conditions. While boarded on the ship, rice always
had a chance of getting affected by seawater. The product would be useless if it were affected by
lumping. Even after being brought back, the product had to be sold at discounted rates.
Therefore, bringing back the product was even costlier for an exporter. In 2014, Mistry had
rushed to Africa and luckily found few buyers who needed rice and bought the product at 15%
less than the market price, resulting in a massive loss of about INR 1.05 million for him.
Mistry also looked at the exchange-rate fluctuation of a few years between his product-
destination countries and India (see Exhibits 1 and 2 for the exchange rates between India and
Russia and between India and South Africa, respectively). He observed that the exchange rate
between India and Russia was more fluctuating than between India and South Africa. (See
Exhibits 3 and 4 for recent trends of the Indian currency against the Russian currency and the
South African currency, respectively. See Exhibit 5 for a graphical representation of the
exchange-rate fluctuation.) His market research team’s calculations of the coefficient of variation
to estimate the exchange rate fluctuations (standard deviation divided by the mean value)
showed that the Indian currency against the Russian currency was experiencing greater
fluctuations than the Indian currency against the South African currency.
Additionally, as mentioned earlier, although the Indian currency was showing a depreciation
trend since 1993, the data for the last one year showed that the Indian currency was
appreciating against the Russian currency, making Indian exports costlier. Mistry then
calculated the unit price for both the markets (see Exhibit 6 for a comparison between the unit
prices of nonbasmati rice for Russia and South Africa). He calculated the correlation coefficient
between the unit price and exchange rates for both markets. He found that the correlation
coefficients between the unit price and exchange rate were −0.34977 and −0.32609 between India
and Russia and India and South Africa, respectively. The above results showed a negative
relationship between exchange rates and prices. Additionally, the results showed that exchange
rate changes were not fully transmitted into the prices as the correlation coefficient was
insignificant. This indicated that the rice export from India was showing a monopoly in fixing
the price. As Mistry was not a large exporter of rice from India, he might not have enjoyed a
monopoly to decide the price.
Thus, after getting the order, he had mixed reactions. He was tempted to accept the order as his
business was facing some setbacks, so it was an excellent opportunity for him if the order were
not rejected. However, he was also a little perplexed. The appreciation of currency had made
the product more expensive. If the price was not reduced, the probability of getting the order
rejected at the last moment was very high as the customer could easily switch to a low-cost
seller.
In the above context, Mistry was wondering about his next steps.
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JALARAM RICE MILLS PRIVATE LIMITED
Mistry started JRMPL in 2004 at Bavla, located about 35 kilometres from Ahmedabad and home
to many rice mills and cotton-processing factories. He came from a business family of
Ahmedabad. His maternal grandfather had established a rice mill known as Shree Krishna Rice
Mills in 1960 at Chikhli, Navsari, a rural place near Ahmedabad. His two maternal uncles
managed the business until 1994 and diversified the business to other agricultural sectors. He
had grown up seeing the rice business and understood the business ecosystem very well. His
father was into the retail business. After completing his Bachelor of Commerce degree from
Gujarat University, he considered starting a business. He could not think of any business other
than rice. He was trying to ascertain whether to sell inside or outside the country. One of his
cousins who had settled in South Africa had asked him to export one rice container in 2004.
After that, he started exporting rice regularly to South Africa and established buyers for his rice
there. Mistry exported nonbasmati parboiled rice. He sold different varieties of parboiled rice
under different names (see Exhibit 7 for different rice types).
Mistry procured rice from rice traders of various districts of Gujarat, West Bengal, Chhattisgarh,
Andhra Pradesh and Madhya Pradesh. Traders were the intermediary between rice millers and
buyers. Mistry had to get rice at a lower cost to keep the export price low. Mistry procured rice
even from foreign exporters and sold it in the global market when the domestic prices were
higher. If the domestic prices were inflated, he obtained rice from Thailand and Vietnam.
He said, “Clients want the product at a lesser price. Internationally, countries like Thailand,
Vietnam, Pakistan and Cambodia are selling at a lower price. We have to sell at a competitive
price to sustain in the business.”
His mill at Bavla had a large warehouse to store the product. He had employed about 20 people
to manage the warehouse. Mistry initially started selling to importers in South Africa.
Nevertheless, he was a little cautious in selling larger quantities. He kept exporting to South
Africa until 2016. After that, he explored other markets and exported to Russia (see Exhibit 8 for
the export details of JRMPL).
THE RICE SUPPLY CHAIN MANAGEMENT
Rice is a seasonal product. Farmers produce rice in the field and procure it during the
harvesting season. The whole process takes about six months. ii The preparation of rice fields is
essential before transplanting rice crops. The field is flooded with water one or two months
before the crops are transplanted. Water control is a critical part of rice cultivation. The rice
sowing usually happens during the early monsoon. The rice crop attains maturity at about four
months or more following crop establishment. Harvesting is the method of obtaining the
ripe rice crop from the field. Farmers collect the rice by cutting the rice stalk at the bottom,
dismantling the entire plant in the winter season. Milling is an important stage in the
postproduction of rice. The purpose of a rice-milling system is to separate the husk and give
contamination-free rice. After being milled, rice is packed in jute bags in different quantities,
usually 10 kg, 25 kg and 50 kg. Rice is transported through trucks to the local ports from where
it is shipped to the respective destinations. Various costs are involved in each process (see
Exhibit 9 for the details of the cost involved in the process).
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RICE STANDARDS
Different countries have different standards. Sometimes, customers from the same country have
different requirements. Customers check the cleanliness, package durability and grain quality.
Rice quality is tested on parameters like colour, strength, grain maturity, broken percentage,
length, width, moisture content and fineness. Rice produced in various places has different
specifications in the above attributes. Paddy is the raw rice with the husk that is collected after
harvesting from the field. The husk part is removed from the rice after milling. Parboiled rice is
prepared by soaking paddy in water through heat treatment, followed by a drying process. Rice
is prone to be affected by odour, insects and mites. It should be free from stone, sand and dust
contamination. Rice is also categorised into long, medium and short grains based on the kernel
length and width ratio. Rice has a maximum shelf life of six months under appropriate
conditions.
RICE PRODUCTION AND EXPORT FROM INDIA
India is the leading basmati rice exporter globally. It exported about 4,414,562.21 metric tonnes
of basmati rice in 2018–19. iii The major destinations for basmati export are Yemen, Iraq, UAE,
Iran and Saudi Arabia. After Thailand, India is the second biggest exporter of nonbasmati rice
(see Exhibit 10 for India’s share of nonbasmati rice export globally). India exported about
5,946,909 metric tonnes of nonbasmati rice in 2018. The major nonbasmati rice importers for
India are Nepal, Benin, Senegal, Bangladesh, etc. (see Exhibit 11 for the major non-basmati-
importing countries from India). West Bengal, Punjab, Uttar Pradesh, Andhra Pradesh, etc., are
the major rice-producing states in the country (see Exhibit 12 for India’s major rice-producing
states).
Challenges
Competition
As per Mistry, anyone with an investment of about INR 1 million could start exporting rice.
Rice is a tax-free product and can be procured easily from the domestic market. For exporting
rice, the exporter requires to get the import–export certificate. One can procure rice from the
local suppliers, stuff it into bags, transport it to the nearest port, stuff it into a container with a
customs clearance certificate, complete required documentation and get it on board for
shipping. The exporter needs to collect the various documents like shipping bills, bills of
lading, 3 fumigation certificates, the centre-of-origin certificate and phytosanitary certificates 4
and handover them to the bank to collect payments from the foreign buyer. The export process
is done after the exporter receives the payment from the bank. One can get the required
documentation, export licence and APEDA 5 certificate easily these days, unlike a few years
before. Anyone can start exporting rice.
3 Bill of lading is the legitimate certificate provided by the carrier that describes the nature, amount and place of the
transported goods.
4A phytosanitary certificate is for checking whether agricultural export goods are devoid of pest and diseases.
5The Agricultural and Processed Food Products Export Development Authority (APEDA) was started by the
Government of India for the export promotion of agricultural goods.
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Mistry said:
A few decades back, the process took more time and effort. More people entered into the
rice-exporting business, thus making the internal competition intense. Indian rice
exporters faced competition outside the country due to low-priced rice from Thailand,
Pakistan, Vietnam and Cambodia.
Competition from Asian countries
Vietnam, Pakistan and Thailand emerged as active players in the Asian region. Compared to
Indian exporters, exporters from these countries offered a better quality of rice at lower prices.
China’s entry into low-cost rice production made the competition even stronger for Indian
exporters. Pakistan was a major competitor to India for basmati rice export, and Thailand,
Vietnam and Myanmar were major competitors for nonbasmati export. iv India had been trying
to compete with Thailand; however, it could not reduce exports due to higher paddy prices.
State and central governments kept buying paddy, increasing the price in the open market.
Chhattisgarh, a major rice-producing state, increased the minimum paddy cost to INR 2,500 per
100 kg from INR 1,750 in 2017. Thus, paddy procurement costs became higher for farmers, who
eventually increased the cost of the rice. The lack of a long-term rice export policy with the rise
in procurement costs under the MSP made the nonbasmati rice export uncompetitive. Indian
exporters were also facing losses due to default of payments by the importers. v Sometimes, the
exporters were facing liquidity issues as receiving payments could take months.
No export subsidy by the government
The government provided incentives to the exporters for exporting various agricultural
products. The incentive was between 2% and 10% of the total export. However, the government
did not offer any export subsidy on rice and offered the 5% Merchandise Exports from India
Scheme (MEIS) 6 on rice only between November 26, 2018, and March 25, 2019. However, it
discontinued the incentive thereafter, resulting in a loss for the rice exporters.
Minimum selling price
Rice millers faced problems due to the minimum selling price set up by the government. Rice
millers sold the rice at a higher price. Importers wanted rice at a lesser price, and exporters
bought rice from traders and millers. The Agricultural Produce Market Committee (APMC)
made the products available from farmers. Exporters had to procure from APMC. They had to
pay Wadat 7 to APMC if the rice was bought directly from farmers.
Less profit margins
The profit margin in exporting rice was very less and ranged between 1% and 3%. The
increasing competition further reduced the profit margin for the exporters.
6 The Merchandise Exports from India Scheme (MEIS) is an export promotion plan launched by the Government of
India as a part of the Foreign Trade Policy 2015–20 from April 1, 2015. Under the scheme, the government offers
various incentives between 2 and 5% for the export of products.
7 Wadat is a tax paid to APMC for the development of the agricultural products.
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Paddy quality
Paddy quality is poor in India. Over the last few decades, rain has become a problem for Indian
farmers. Farmers lose paddy due to heavy or no rainfall and get poor paddy due to less rainfall.
Water scarcity has been a significant problem for Indian farmers. Rainwater, soil quality, seed
quality and chemical fertilisers affect the paddy quality. The government needs to intervene for
improving the paddy quality.
South Africa
South Africa was primarily dependent on imported rice to meet the domestic demand as the
domestic rice production was negligible because of the high water requirements of the crop. vi
Rice import is duty free in the country. Over 90% of the rice consumed in the country is
parboiled. The country consumed about 900,000 tonnes of rice in 2017–18. The country is
expected to require about 980,000 tonnes of rice during 2019–20. South African importers are
very price sensitive and particular of the quoted price. Any exporters exporting to the country
have to provide the product at the quoted price, irrespective of any uncertain situations. The
exporters have to bear the loss if they cannot provide the required quantity in the quoted price.
The major exporting countries of nonbasmati rice to South Africa are Thailand, India, UAE,
Hong Kong, Pakistan, Malaysia, Brazil, etc. (see Exhibit 13 for major exporting countries of
nonbasmati rice to South Africa). India is the second-largest exporter of nonbasmati rice to
South Africa (see Exhibit 14 for India’s nonbasmati rice export from 2014–15 to 2018–19).
Among the exporting countries, Thailand offers the lowest price to the price-sensitive importers
of the country (see Exhibit 15 for the unit price of nonbasmati exported to South Africa).
Russia
Russia is a major producer of wheat, corn and barley. vii Rice production is comparatively less in
Russia due to climatic uncertainties. Some parts of Russia receive heavy rainfall and other parts
low rainfall. In 2018, Russia produced about 700,000 metric tonnes of rice. India, Thailand,
Pakistan, Kazakhstan, Myanmar, Vietnam and Cambodia are the major non-basmati-exporting
countries to Russia (see Exhibit 16 for major non-basmati-exporting countries to Russia). India is
the largest exporter of nonbasmati rice to Russia (see Exhibit 17 for India’s nonbasmati rice
export from 2014–15 to 2018–19). Among the exporting countries, Kazakhstan offers the lowest
price to the price-sensitive importers of the country (see Exhibit 18 for the unit price of
nonbasmati rice to Russia). Russian importers require phytosanitary, Codex, 8 Striga 9 and
fumigation certifications. The Government of India has permitted different agencies and bodies
to offer these certifications. Although fumigation is mandatory for exporting many agricultural
products, including rice, Russian importers require extra care for imported rice. They demand
three fumigation cycles. They require certified fumigation on the product, empty container and
post-packaged goods. The fumigation certification costs about INR 1,000–2,000 per container.
Often in the past, Russia has banned rice import from India. In December 2006, Russia imposed
a ban on importing Indian rice due to the presence of aflatoxin, a potential health hazard. viii The
ban continued until July 2007. Aflatoxin B1 is a toxic substance produced by Aspergillus
8 Codex certification is for safeguarding human health and implementing right practices in the global food trade.
9 Striga certification is for confirming that seeds of Striga species have not infested agricultural products.
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fungus. It can damage the liver in patients with hepatitis B. Pesticides can destroy the fungus,
although they can raise the pesticide levels in the crop. In December 2012, Russia again banned
the import of nonbasmati rice from India. ix The ban, which continued for about eight months,
was due to the presence of the Khapra beetle 10 in rice. The country lifted the ban after nine
months. In July 2015, Russia once again imposed a ban on rice import from India due to the
presence of dimethoate, a pesticide. x
THE DECISION BEFORE MISTRY
Although the recent bulk order sounded exciting to Mistry, he was still very apprehensive
about accepting the order. Compared to South African buyers, Russian buyers are
comparatively stringent about the quality. However, if everything goes well, accepting the
order would help him exploit more market opportunities in Russia and yield more profit for
him. Unlike South African buyers, Russian buyers are not very price sensitive. In the above
context, Mistry was thinking of whether to accept the offer. Also, he had to estimate the price of
exporting the order to avoid future uncertainties.
10 Khapra beetle is a harmful pest that infests food grains and seeds.
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Jan-93
Jun-93
Nov-93
9 of 19
Apr-94
Sep-94
Feb-95
Jul-95
Dec-95
May-96
Oct-96
Mar-97
Aug-97
Jan-98
Jun-98
Nov-98
Apr-99
Sep-99
Feb-00
Source: Prepared by the authors.

Jul-00
Dec-00
May-01
Oct-01
Mar-02
Aug-02
Jan-03
Jun-03
Nov-03
Apr-04
Sep-04
Feb-05
Jul-05
Dec-05
May-06
Oct-06
Mar-07
Aug-07
Indian Rupee/Russian RUB
Jan-08
Exhibit 1
Jun-08
Nov-08
Apr-09
Sep-09
Feb-10
Jul-10
Dec-10
May-11
Oct-11
Mar-12
Aug-12
Jan-13
Jun-13
Nov-13
Apr-14
Sep-14
Exchange-Rate Fluctuation Between India and Russia
Feb-15
Jul-15
Dec-15
May-16
Oct-16
Mar-17
Aug-17
Jan-18
Jun-18
Nov-18
Apr-19
Sep-19
A00273
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Exhibit 2
Exchange-Rate Fluctuation Between India and South Africa
Indian Rupee/South African Rand

0.3
0.25
0.2
0.15
0.1
0.05
0
101
106
111
116
121
126
131
136
141
146
151
156
161
166
171
176
181
186
191
196
201
206
211
216
221
226
231
236
241
246
251
256
261
266
271
276
281
286
291
296
301
306
311
316
321
1
6
11
16
21
26
31
36
41
46
51
56
61
66
71
76
81
86
91
96
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Exhibit 3
Indian Currency Against Russian Currency
Indian Rupee Against Russian Currency: Recent Trend

0.96
0.94
0.92
0.9
0.88
0.86
0.84

Exhibit 4
Indian Currency Against South African Currency
Indian Currency Against South African Currency: Recen

0.215
0.21
0.205
0.2
0.195
0.19
0.185
0 18
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Exhibit 5
Exchange-Rate Fluctuation Between India and South Africa and Between India and Russia
Exchange rate fluctuations
0.40
0.30
0.20
0.10
0.00
2015 2016 2017 2018 2019
Rupee with respect to South African currency Rupee with respect to Russian currency
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Exhibit 6
Unit Price for Nonbasmati Rice in Russia and South Africa
Unit Price for Non-Basmati Rice In Russian

and South African Markets
0.29
0.28
0.27
0.26
0.25
0.24
0.23
0.22
Unit Price for Russia Unit Price for South Africa

Exhibit 7
Types of Parboiled Rice
Sr No. Rice name Colour Variety Package

1 IR 8 parboiled long rice Brown Long grain Jute bag
2 IR 36 parboiled long rice Yellow Medium grain Jute bag
3 IR 64 parboiled long rice Yellow Long grain Jute bag
4 Parmal parboiled long rice White Long grain Jute bag
5 PR 106 parboiled long rice White Long grain Jute bag
Source: Company reports.
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Exhibit 8
Export Details of Jalaram Rice Mills Pvt Ltd.
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Total export 4,186 5,200 4,810 5,798 6,552 9,126 12,272 6,864 5,226 4,525 1,500
quantity (in
metric tonnes,
MT)
Average 430 434 413 405 416 402 397 442 424 443 663
price/export
(USD per MT)
Export quantity 260 520 NA
to Russia (MT)
Export price for 425 431 NA
Russia (USD
per MT)
Export quantity 3,926 4,680 4,810 5,798 6,552 9,126 12,272 6,864 5,226 4,525 1,500
to Africa (MT)
Export price for 433 438 413 405 416 402 397 442 424 443 663
Africa (USD
per MT)
Source: Company.
Exhibit 9
Details of the Cost Involved in the Transportation
Details Price/MT
Parboiled rice raw material cost INR 25,000.00
Packaging bag (size 50 kg) INR 350.00
Brokerage cost INR 60.00
Transport from local to the Mundra port 11
INR 680.00
Clearing house agent charges INR 450.00
Shipping company handling charges INR 460.00
Insurance INR 200.00
Expense over raw material INR 2,200.00
Total cost/MT INR 27,200.00
Rupee/dollar rate INR 70.00 USD 388.57
Freight to pay on the container (26,000 kg) USD 900.00 USD 34.62
Total cost of rice per MT USD 423.19
Source: Company.
11 Mundra is a town in Kutch district, Gujarat, India.
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Exhibit 10
India’s Share as an Exporting Country for Nonbasmati Rice in the World (in Percentage)
Sr No Exporting Country Share (2018)

1 Thailand 25.80
2 India 22.97
3 Vietnam 11.96
4 Pakistan 7.78
5 USA 6.46
6 China 3.35
7 Italy 3.28
8 Cambodia 2.05
9 Myanmar 1.83
10 Uruguay 1.37
Source: APEDA Agri Exchange.
Exhibit 11
Major Nonbasmati-Rice-Importing Countries for India in 2018–19 (Quantity in MT)
Sr No. Name of the country 2018–19
1 Nepal 770,113.06
2 Benin 699,004.80
3 Senegal 720,474.29
4 Bangladesh 480,567.47
5 Guinea 467,691.23
6 Côte d'Ivoire 438,089.53
7 United Arab Emirates 291,576.06
8 Somalia 326,919.10
9 Indonesia 326,005.78
10 Liberia 301,112.49
Source: DGCIS Annual Export, Retrieved October 15, 2019, from

https://agriexchange.apeda.gov.in/product_profile/exp_f_india.aspx?categorycode=0602
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Exhibit 12
India’s Major Rice-Producing States (Production in 000’ Tonnes)
Sr No. State Production Share

2017–18
1 West Bengal 14,970.00 13.26
2 Punjab 13,380.00 11.85
3 Uttar Pradesh 13,270.00 11.75
4 Andhra Pradesh 8,180.00 7.24
5 Bihar 7,910.00 7.01
6 Tamil Nadu 7,280.00 6.45
7 Orissa 6,530.00 5.78
8 Telangana 6,250.00 5.54
9 Assam 5,160.00 4.57
10 Chhattisgarh 4,730.00 4.19
Source: Retrieved October 15, 2019, from

https://agriexchange.apeda.gov.in/India%20Production/India_Productions.aspx?cat=Agri&hscode=1011
Exhibit 13
Major Countries Exporting Nonbasmati Rice to South Africa
(Quantity in MT Value in USD Million)
Sr No. Country Qty Value

2018
1 Thailand 799,170.00 348.00
2 India 214,654.00 133.00
3 UAE 14,978.00 8.00
4 Hong Kong 13,899.00 7.00
5 Pakistan 5,734.00 5.00
6 Malaysia 5,400 3.00
7 Brazil 7,392.00 3.00
8 Australia 1,753.00 2.00
9 China 967.00 2.00
10 Italy 2,451.00 2.00
Source: APEDA.
17 of 19 A00273
Exhibit 14
India’s Nonbasmati Rice Export from 2014–15 to 2018–19 (Quantity in MT)
Year Country Quantity INR in Crores USD in Million

2018–19 South Africa 149,879.99 379.12 54.52
2017–18 South Africa 142,722.51 354.90 55.08
2016–17 South Africa 254,070.26 592.53 88.52
2015–16 South Africa 260,805.46 570.64 87.07
2014–15 South Africa 338,839.75 803.27 131.43
Source: Retrieved October 15, 2019, from https://agriexchange.apeda.gov.in/IndExp/PortNew.aspx
Exhibit 15
Major Exporters’ Unit Price of Nonbasmati Rice to South Africa
(Unit in Metric Tonnes, Price in USD)
Sr No. Country 2018 2017 2016 2015 2014
1 Thailand 435.45 405.14 403.85 401.83 454.62
2 India 619.60 676.94 401.63 472.35 444.11
3 UAE 534.11 1,291.59 649.68 3,921.88
4 Hong Kong 503.63 2,175.68 1,142.20
5 Pakistan 871.99 612.83 651.33 752.44 1,045.40
6 Vietnam 587.54 568.26 390.10 367.93 432.40
http://agriexchange.apeda.gov.in/product_profile/exp_imp_countries_detail.aspx?categorycode=0602&cntyc=ZAF&cn
tyn=South%20Africa
Exhibit 16
Major Exporting Countries of Nonbasmati Rice to Russia (Quantity in MT
Value in USD Million)
Sl. No. Country Qty Value

2018
1 India 69,329.00 32.00
2 Thailand 49,916.00 24.00
3 Pakistan 38,115.00 19.00
4 Kazakhstan 26,166.00 6.00
5 Myanmar 13,725.00 6.00
6 Vietnam 9,889.00 5.00
7 Cambodia 3,313.00 3.00
8 China 5,117.00 3.00
9 Italy 1,119.00 2.00
10 Australia 691.00 1.00
http://agriexchange.apeda.gov.in/product_profile/exp_imp_countries_detail.aspx?categorycode=0602&cntyc=RUS&c
ntyn=Russia
18 of 19 A00273
Exhibit 17
India’s Nonbasmati Rice Export to Russia from 2014–15 to 2018–19
(Quantity in MT)
Year Country Quantity INR in crores USD in million

2018–19 Russia 71,667.3 199.28 28.28
2017–18 Russia 53,926.51 143.89 22.33
2016–17 Russia 77,197.00 194.12 29.01
2015–16 Russia 66,771.00 159.79 24.25
2014–15 Russia 79,032.00 196.72 32.08
Source: Retrieved October 15, 2019, from https://agriexchange.apeda.gov.in/IndExp/PortNew.aspx
Exhibit 18
Major Exporters’ Unit Price of Nonbasmati Rice to Russia
(Unit in Metric Tonnes, Price in USD)
Sl. No. Country 2018 2017 2016 2015 2014
1 India 461.56 456.18 418.86 434.20 497.16
2 Thailand 480.80 452.31 451.24 456.11 486.79
3 Pakistan 498.49 486.95 394.37 444.50 624.82
4 Kazakhstan 229.30 376.33 177.75 294.45 251.97
5 Myanmar 437.15 431.45 446.89 536.08
6 Vietnam 505.61 433.35 438.94 405.62 479.97
http://agriexchange.apeda.gov.in/product_profile/exp_imp_countries_detail.aspx?categorycode=0602&cntyc=RUS&c
ntyn=Russia
19 of 19 A00273
ENDNOTES
iKulkarni, V. (2019, July 18). India losing African rice market to others. The Hindu. Retrieved
December 20, 2019, from https://www.thehindubusinessline.com/economy/agri-
business/india-losing-african-rice-markets-to-others/article28560702.ece
Brouwer, C., Prins, K., & Heibloem, M. (1989). Determination of the irrigation schedule for
ii
paddy rice. Irrigation water management: Irrigation scheduling.

http://www.fao.org/3/t7202e/t7202e07.htm
iiiAPEDA (n.d.). Basmati rice. Retrieved December 20, 2019, from
http://apeda.gov.in/apedawebsite/SubHead_Products/Basmati_Rice.htm
iv Jhadhav, R. (2019, July 29). RPT-India rice exports could hit 7-year low on weak demand,
higher prices – industry. reuters.com. Retrieved December 20, 2019, from

https://in.reuters.com/article/india-rice-exports/rpt-india-rice-exports-could-hit-7-year-low-
on-weak-demand-higher-prices-industry-idINL4N24U0ZO
v Rawat, V. S. (2019, September 7). Indian rice exports face threat from Asian peers, including
Pakistan. Business Standard. Retrieved December 20, 2019, from https://www.business-

standard.com/article/economy-policy/indian-rice-exports-face-threat-from-asian-peers-
including-pakistan-119090700771_1.html
vi USDA Foreign Agricultural Service (2018, March 27). South Africa – USDA Gain Reports.
usda.gov. Retrieved December 27, 2019, from

https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfilename?filename=Grai
n%20and%20Feed%20Annual_Pretoria_South%20Africa%20-%20Republic%20of_3-27-2018.pdf
USDA Foreign Agricultural Service (2019, November 1). Grain and Feed Update–Russian
vii
Federation. usda.gov. Retrieved December 27, 2019, from

https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=
Grain%20and%20Feed%20Update_Moscow_Russian%20Federation_10-15-2019
Singh, S., & Koshy, J. (2007, July 2). India to renegotiate rice import ban with Russia.
viii
Livemint.com. Retrieved December 27, 2019, from

https://www.livemint.com/Politics/1FY5zjNisNVLJvj32n9fHI/India-to-renegotiate-rice-
import-ban-with-Russia.html
ixJha, D. (2013, September 7). Russia lifts ban on rice imports from India. Business Standard.
Retrieved December 27, 2019, from https://www.business-
standard.com/article/markets/russia-lifts-ban-on-rice-imports-from-india-
113090700549_1.html
xDownToEarth (2015, July 4). Russia bans rice imports from India claiming pesticide
contamination. Retrieved December 27, 2019, from
https://www.downtoearth.org.in/news/russia-bans-rice-imports-from-india-claiming-
pesticide-contamination-6160

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A00273

September 25, 2021

Jalaram Rice Mills Private Limited: Vishal H Mistry’s

When asked about the loyalty of the clients, he said:

JALARAM RICE MILLS PRIVATE LIMITED

THE RICE SUPPLY CHAIN MANAGEMENT

RICE PRODUCTION AND EXPORT FROM INDIA

Competition from Asian countries

No export subsidy by the government

Minimum selling price

Less profit margins

THE DECISION BEFORE MISTRY

Source: Prepared by the authors.

Indian Rupee/South African Rand

Source: Prepared by the authors.

Indian Rupee Against Russian Currency: Recent Trend

Source: Prepared by the authors.

Indian Currency Against South African Currency: Recen

Source: Prepared by the authors.

Unit Price for Non-Basmati Rice In Russian

Unit Price for Russia Unit Price for South Africa

Sr No. Rice name Colour Variety Package

11 Mundra is a town in Kutch district, Gujarat, India.

Sr No Exporting Country Share (2018)

Sr No. Name of the country 2018–19

Source: DGCIS Annual Export, Retrieved October 15, 2019, from

Sr No. State Production Share

Source: Retrieved October 15, 2019, from

Sr No. Country Qty Value

Year Country Quantity INR in Crores USD in Million

Sl. No. Country Qty Value

Year Country Quantity INR in crores USD in million

paddy rice. Irrigation water management: Irrigation scheduling.

higher prices – industry. reuters.com. Retrieved December 20, 2019, from

Pakistan. Business Standard. Retrieved December 20, 2019, from https://www.business-

usda.gov. Retrieved December 27, 2019, from

Federation. usda.gov. Retrieved December 27, 2019, from

Livemint.com. Retrieved December 27, 2019, from

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