Rice Exporting: Analysing Indian Competitors & Their Credit-Based Sales - Essay Sample

Introduction

As the scope of the company is 100 percent export-based, along with other Pakistani rice exporters, our biggest competitors are Indian Rice Exporters. For the past year, I have been going through the renowned Indian Rice Exporters Annual Reports. They included namely LT Foods Ltd, KRBL Ltd, and Amira Foods Ltd. There was one common thing in all these Indian corporate entities, most of their export sale was credit-based (approximately 70%). The bad debts were not even 1%. I also went through their previous 5-years annual reports and analyzed the same trend. I was very much surprised that how come these incorporated firms export a considerable amount of value-added rice goods on 90 to 120 days credit. I discovered that only Established Indian Rice Exporters but also medium to small level Indian Exporters most of the export sale is made on 90 to 120 days credit and almost no bad debt. All Indian Rice Exporters Export Foam endorsement and payment routing are done through the Central Bank of India. The Government of India secures the export credit sale of the Indian exporters. Through this framework, the government covers the debt. The Ministry of Commerce/Industry and External Affairs has the responsibility to undertake these measures. The ministry ensures that the importer's credit history in his country deteriorates, thus preventing them from importing any goods on credit. Hence due to this strong support from the Government of India, Indian rice exporters without any fear do most of their export on credit, and to stay safe from negative credit standing importers also make the payments as agreed.

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I recommend a similar credit facility arrangement that will transform our company's sales trends and importers' credit purchases. Through this, I believe I will stand a better chance in enhancing my education prospects. As I prepare to pursue a Master of Accounting Program, I want to dedicate my time and research into changing the payment agreement, especially credit financing, to boost export trade. As the scope of the company is 100 percent export-based, along with other Pakistani rice exporters, our biggest competitors are Indian Rice Exporters. For the past year, I have been going through the renowned Indian Rice Exporters Annual Reports. They included namely LT Foods Ltd, KRBL Ltd, and Amira Foods Ltd. There was one common thing in all these Indian corporate entities, most of their export sale was credit-based (approximately 70%). The bad debts were not even 1%. I also went through their previous 5-years annual reports and analyzed the same trend. I was very much surprised that how come these incorporated firms export a considerable amount of value-added rice goods on 90 to 120 days credit. I discovered that only Established Indian Rice Exporters but also medium to small level Indian Exporters most of the export sale is made on 90 to 120 days credit and almost no bad debt. All Indian Rice Exporters Export Foam endorsement and payment routing are done through the Central Bank of India. The Government of India secures the export credit sale of the Indian exporters. Through this framework, the government covers the debt. The Ministry of Commerce/Industry and External Affairs has the responsibility to undertake these measures. The ministry ensures that the importer's credit history in his country deteriorates, thus preventing them from importing any goods on credit. Hence due to this strong support from the Government of India, Indian rice exporters without any fear do most of their export on credit, and to stay safe from negative credit standing importers also make the payments as agreed.

My proposal entails facilitating export credit insurance, a credit finance strategy that will boost exports and enable importers to buy more products. I propose this change to increase the company's standing on managing its sales-export deals and fortify its credit facilities with importers. I recommend that the company sign a trade deal with the Tradewind and Expands Services GMBH, a German firm. The company will enter an export credit insurance deal with the insurance firm to boost its credit facilities to increase its turnover. Through this arrangement, the company will strive to double its exports in addition to enjoying a significant return on capital.

After the remarkable experience with the Indian Government, I believe that the best modification the company needs to undertake is to get a credit insurance cover to enhanceits exports. Through this, I believe the company will experience a further improvement in international trade from the Gulf Region, Europe, and America. The arrangement will motivate more extensive engagement on exports with more importers from across the globe, enjoying the benefits of our company export. I believe this proposal will further augment my career and professional prospects in the company as I focus on improving my skills with the Masters of Accounting Program in your institution.