You live near Mumbai city. In your farm you have produced 1000 quintals of rice. There is a good demand for it in the overseas market than in the local market. A merchant from South Africa is ready to purchase this rice at a good price but he wants the import at Cape Town port within four months. Tell what you will do, as a good trader.
Answers
The demand for rice in the world markets is increasing day by day.
India is the topmost exporter of rice to other countries, especially to South Africa.
In South Africa, the climatic conditions are not suitable for agriculture especially for rice and the cost of production is very high.
Hence there is a growing demand for rice.
So if a merchant from Mumbai exports 1000quintals (nearly 1,00,000Kg in four months) he has to follow the certain rules.
1. Registered a firm or a concern.
2. Get Import export code.
3. Select the country you are going to export.
4. Find the local buyers in that country.
5. Know the complete procedure of import and exports and know your demand and competition there.
6. Follow rules and regulations strictly.
7. Choose the proper means of transportation for exporting (by IEC laws).