In the Rice Business, it’s crucial to stay ahead of the price game, especially when dealing with commodities like rice, Spices, grains & cereals. Let’s delve into the insider secrets shared during a recent conversation, revealing how to procure rice at lower prices without compromising quality.
Rice has different factors looked into while we check the quality of the product. And yes its Quality determines its pricing. There are 85+ varieties of Rice In India, & as a trader, you are always looking for purchasing power with good quality to do a profitable business. So, Let’s discuss what are those factors.
Watch this video Inside How to Buy Rice at Cheap Rates for Your Rice Business. featuring an exporter with over 10 years of experience for a clearer understanding.
Factors determining the Price parity of Rice:
1. Moisture Content:
The first nugget of wisdom shared was the significance of moisture content in rice. Did you know that the moisture level affects not only the appearance but also the price of rice? For instance, milling rice at 9.5% moisture results in whiter and creamier grains, but increasing the moisture to 12% can significantly reduce prices. By understanding this, buyers can negotiate better deals with millers based on their quality preferences.
2. Broken Percentage:
Another crucial aspect discussed was the broken percentage of rice. While some regions produce rice with minimal breakage (1-2%), others may have higher percentages (up to 20%). Buyers can leverage this knowledge to their advantage, negotiating lower prices based on the broken percentage. For bulk buyers or those catering to less quality-sensitive markets, opting for rice with a higher broken percentage can lead to substantial cost savings.
3. Ad-Mixture Content
Premium varieties like basmati face unique trade challenges, particularly concerning admixture. For instance, in cases where 20% of a non-premium grain like 1509 rice is mixed with 80% of a premium grain such as 1121 rice, the overall price of the cargo decreases.
4. Regional Disparities in Rice Pricing
The price of rice is different across regions and is prevalent in the rice market, where seemingly identical rice varieties may vary significantly in cost. For instance, while Karnataka’s original Sona Masuri commands a premium, traders often export Nellore Sona at a lower price.
How do you Negotiate for Better Rates in the Rice business?
The role of finance plays a very key role in securing favourable pricing with your purchase partner & Overseas buyers.
- Cash is King
Offering upfront payments or agreeing to faster payment terms can often result in cash discounts from millers. Additionally, buyers can explore the option of securing credit from trusted suppliers, paving the way for long-term partnerships and mutually beneficial arrangements.
- Empowering Buyers with Knowledge
By sharing insights into the complexities of the rice trade, buyers gain the knowledge needed to make informed choices and negotiate competitive prices. This fosters trust and facilitates the process of securing favourable deals with buyers. By strategically navigating factors like moisture content, broken percentage, and payment terms, digital marketers in the export-import industry can optimize procurement processes and drive profitability for their businesses.
- Unlocking Opportunities with PWIP
To stay updated on fluctuating rice prices and connect with reputable millers, platforms like PWIP offer invaluable assistance. These Platforms help you study the market better and negotiate with your partners easily. Through a simple WhatsApp message, buyers can access real-time pricing information and engage with verified suppliers, streamlining the procurement process and unlocking new opportunities in the rice trade.
Conclusion:
The key to buying rice at lower prices lies in understanding the nuances of the trade and leveraging this knowledge to negotiate favourable deals. Whether it’s optimizing moisture content, capitalizing on broken percentages,
By embracing these insider secrets and utilizing platforms like PWIP, buyers can confidently navigate the rice trade’s complexities with confidence, driving efficiency and profitability in their businesses. It’s time to seize the advantage and unlock new possibilities in the dynamic world of rice procurement.
Looking for more understanding on Rice Trade: Check this out How Much Does One Container Rice Export Shipment Make Profit in 2024. Do Follow us on Our Social Media channels to stay ahead in your rice business.