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How to Export Rice from India to the USA

How to Export Rice from India to the USA

India stands as the world’s largest exporter of rice, supplying over 40% of the global demand. The United States, with its growing Asian and Indian diaspora, continues to show increasing demand for Basmati and Non-Basmati rice. If you’ve ever wondered how to export rice from India to the USA successfully, this detailed guide breaks down every step—from legal registration to shipment and payment.


Understanding Rice Export from India to the USA

Overview of India’s Rice Export Market

India exports rice to more than 150 countries. In 2024, the nation shipped over 22 million metric tons, valued at nearly $9 billion USD. The U.S. ranks among the top premium buyers of Indian Basmati rice, especially in states like California, Texas, and New Jersey.

Types of Rice Exported from India

  1. Basmati Rice – Known for its aroma and long grain, primarily grown in Haryana, Punjab, and Uttar Pradesh.
  2. Non-Basmati Rice – Includes varieties like Sona Masoori, Ponni, and IR64, used widely in global cuisines.

Current Trends in the U.S. Market

The demand for organic and pesticide-free rice is rapidly increasing. Retailers and restaurants prefer certified suppliers who comply with FDA and USDA food safety norms.


Legal Requirements for Exporting Rice from India

Registration with DGFT

Every exporter must register with the Directorate General of Foreign Trade (DGFT) to legally ship goods abroad.

Obtaining an IEC Code

An Importer-Exporter Code (IEC) is mandatory. It’s a 10-digit number issued by DGFT, required for customs clearance and bank transactions.

APEDA Registration

Rice exporters must register under APEDA (Agricultural and Processed Food Products Export Development Authority), which ensures the product meets international standards.


USDA and FDA Compliance for Rice Imports into the USA

U.S. Food Safety Standards

The Food and Drug Administration (FDA) and United States Department of Agriculture (USDA) regulate all food imports. Exporters must ensure the rice is free from contaminants, properly processed, and labeled.

FDA Prior Notice

Before shipment, exporters must submit a Prior Notice (PN) to the FDA. This alerts U.S. authorities of incoming food products.

Packaging, Labeling, and Fumigation

The rice must be packed in food-grade, moisture-proof bags. Labels must display the product name, country of origin, manufacturer details, and nutrition facts. Fumigation is often required to prevent pest contamination.


Step-by-Step Process to Export Rice from India to the USA

Step 1: Market Research

Identify your target audience and potential buyers in the U.S. using platforms like Alibaba, TradeIndia, or IndiaMART.

Step 2: Documentation and Compliance

Prepare documents such as:

  • IEC Certificate
  • APEDA Registration
  • Phytosanitary Certificate
  • Commercial Invoice
  • Bill of Lading
  • Certificate of Origin

Step 3: Logistics and Customs

Work with an experienced freight forwarder. Choose between sea freight (most common) or air freight for smaller shipments. Ensure customs paperwork aligns with both Indian and U.S. regulations.

Step 4: Payment and Risk Management

Secure payments via Letter of Credit (LC) or Advance Payment. Use export insurance (ECGC) to minimize risk.


Major Ports and Logistics Channels

Key Indian Ports

  • Kandla Port (Gujarat)
  • Mundra Port (Gujarat)
  • Chennai Port (Tamil Nadu)
  • Visakhapatnam Port (Andhra Pradesh)

U.S. Entry Ports

  • Port of Los Angeles
  • Port of Houston
  • Port of Newark
  • Port of Oakland

Cost Factors Involved

Cost ComponentDescription
Production CostsFarming, milling, polishing, and packaging
Freight & InsuranceOcean freight, container booking, insurance
Duties & TaxesU.S. customs duty, port charges
Profit MarginTypically ranges between 10–20%

Marketing and Building International Buyer Relationships

  • Participate in trade fairs such as SIAL Paris or Gulfood Dubai.
  • Build a strong online presence via LinkedIn, Alibaba, and global B2B portals.
  • Focus on consistent quality and timely delivery to build trust.

Common Challenges

  • Stringent U.S. food safety regulations
  • Price competition from countries like Thailand and Vietnam
  • Shipping delays and port congestion

Top Indian Rice Exporters to the USA

  1. KRBL Limited (India Gate)
  2. LT Foods (Daawat)
  3. Kohinoor Foods Limited

These companies dominate the U.S. market with quality control and established distribution channels.


Useful Tips for New Exporters

  • Always verify U.S. buyers’ credibility.
  • Maintain detailed documentation for every shipment.
  • Stay updated with DGFT notifications and export incentives.

Frequently Asked Questions (FAQs)

1. Do I need an export license to send rice to the USA?
Yes. An IEC code and APEDA registration are mandatory.

2. How long does it take to ship rice from India to the USA?
Typically 25–40 days via sea freight, depending on port location.

3. Can small businesses export rice?
Absolutely. Many small-scale exporters start with 1–2 container shipments.

4. What are the FDA requirements?
Proper labeling, prior notice filing, and compliance with food-grade standards.

5. Which type of rice sells best in the USA?
Basmati rice is the most preferred due to its aroma and long grain.

6. How can I find buyers for rice export?
Use platforms like TradeIndia, ExportersIndia, and Alibaba to connect with verified buyers.


Conclusion: Key Takeaways for Rice Exporters

Learning how to export rice from India to the USA is more than just paperwork—it’s about quality, compliance, and trust. With India’s rich agricultural base and the U.S. market’s consistent demand, rice exporters have enormous potential. By following the steps above, maintaining compliance, and focusing on customer satisfaction, you can build a sustainable export business in 2025 and beyond.

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