{"id":32278,"date":"2021-06-28T11:51:17","date_gmt":"2021-06-28T06:21:17","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=32278"},"modified":"2021-06-28T11:51:19","modified_gmt":"2021-06-28T06:21:19","slug":"rice-business-in-india-scope-licenses-and-benefits","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/rice-business-in-india-scope-licenses-and-benefits\/","title":{"rendered":"Rice business in India: Scope, licenses, and Benefits"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Rice is extensively consumed in our country and its production and demand are always on the higher side. Thus, setting up a Rice Business could be a winning proposition for anyone seeking a stable source of revenue. One can enter into the rice business in any form such as wholesale, retailing, production, farming, and export. Each form seeks different licenses and government-based registrations. In this write-up, we will talk about the legality aspects of starting the Rice business in India and other important aspects. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/rice-business-in-india-scope-licenses-and-benefits\/#An_Overview_on_Rice_production_and_demand\" >An Overview on Rice production and demand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/rice-business-in-india-scope-licenses-and-benefits\/#Reasons_to_venture_into_a_Rice_Business\" >Reasons to venture into a Rice Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/rice-business-in-india-scope-licenses-and-benefits\/#Licenses_required_to_operate_a_Rice_business\" >Licenses required to operate a Rice business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/rice-business-in-india-scope-licenses-and-benefits\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_Overview_on_Rice_production_and_demand\"><\/span>An Overview on Rice production and demand <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Rice is one of the most vital commercial food crops which satiate the hunger of half of the world population. The annual production of Rice stands at 535 million tons. <strong><em>India<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/India\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> &amp; China are the world\u2019s leading rice producers which collectively contribute to 50% of the global overall production. <\/p>\n\n\n\n<p>The rice export in Southeast Asian nations is considerably low,\n&amp; their collective yearly production rate accounted for 9-23 million metric\ntons. More than 300 million acres of cultivated land in Asia is being used for\nRice production. Rice is a kind of staple food that has a connection with Asian\nculture. <\/p>\n\n\n\n<p>Last year India&#8217;s rice production was stood at 102.36 million tonnes in the Kharif season. This figure was marginally better than the preceding year, i.e. 2019, where the rice production stood at 101.98 million tonnes. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/process-of-startup-india-registration-online\/\">Process of Startup India Registration: A Step by Step Guide <\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_to_venture_into_a_Rice_Business\"><\/span>Reasons to venture into a Rice Business <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Stable Demand throughout the year<\/li><li>Widespread reach because of the massive consumer base<\/li><li>Exporting opportunities owing to ever-growing customer-base in an overseas location<\/li><li>There is a great demand for Rice by products in India as well as abroad. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Licenses_required_to_operate_a_Rice_business\"><\/span>Licenses required to operate a Rice business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here\nis the list of common licenses and registrations that one has to secure before\nstarting the Rice Business. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/06\/Licenses-required-to-operate-a-Rice-business.png\" alt=\"Rice business in India\" class=\"wp-image-32296\" width=\"374\" height=\"618\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/06\/Licenses-required-to-operate-a-Rice-business.png 480w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/06\/Licenses-required-to-operate-a-Rice-business-182x300.png 182w\" sizes=\"(max-width: 374px) 100vw, 374px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Shop and Establishment License <\/h3>\n\n\n\n<p><strong><em>Who\nneeds this: Retailer and Wholesaler<\/em><\/strong><\/p>\n\n\n\n<p>A <a href=\"https:\/\/corpbiz.io\/shop-establishment-license\"><strong>shop and Establishment license<\/strong><\/a> is mandatory for commercial establishments like shops, retail outlets, godowns, hotels, storerooms, warehouses, etc. The Labour department usually issues this license after receiving the application for the same via its appointed officers. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Details to be submitted in the Shop Act License form <\/h3>\n\n\n\n<ul><li>Name of the commercial establishment. <\/li><li>Name and the detail of the employer as well as workers serving the establishment. <\/li><li>The address of the commercial establishment, annexed with a copy of the rent agreement. <\/li><li>PAN card of the business owner. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Trade License <\/h3>\n\n\n\n<p><strong><em>Who\nneeds this: Wholesaler <\/em><\/strong><\/p>\n\n\n\n<p>A <a href=\"https:\/\/corpbiz.io\/trade-license\"><strong>trade license<\/strong><\/a> is a way to administer a specific business form located in a particular locality. Businesses with trade licenses are entrusted with the responsibility of averting unfair practices that hampers the interest of people in any way. Having a trade license indicates that the firm is committed to following relevant rules, standards &amp; safety guidelines as prescribed under this license. <\/p>\n\n\n\n<p>The state government has\nunderpinned the provisions of the trade license. Also, it is entrusted with an\nobligation to monitor and administer the trade within a city. Trade license is\ngranted by the Municipal Corporation of the district where the place of business\nis located. <\/p>\n\n\n\n<p>Business owners are required to\navail of this license for the commencing their operation. However, some state\ngovernments have granted some buffer time (15 days-3 months to be specific) in\nthis regard in case the applicant fails to comply with the said requirement. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">FSSAI License <\/h3>\n\n\n\n<p><strong><em>Who needs this: Wholesaler, Rice\nMill owner. <\/em><\/strong><\/p>\n\n\n\n<p>FSSAI food license is strictly\nmeant for businesses operating in the food sector.&nbsp; Businesses that come under the ambit of the FSS\nAct, 2006 are required to obtain this license. One can make an online\napplication for the same by visiting FSSAI\u2019s online portal. &nbsp;<\/p>\n\n\n\n<p><strong><em>Key takeaway:<\/em><\/strong> Food license is issued by the\nFSSAI under the 3-tier system as given below: <\/p>\n\n\n\n<ul><li>Basic registration<\/li><li><a href=\"https:\/\/corpbiz.io\/fssai-state-license\"><strong>State Food License<\/strong><\/a> <\/li><li><a href=\"https:\/\/corpbiz.io\/central-fssai-license\"><strong>Central Food License<\/strong><\/a> <\/li><\/ul>\n\n\n\n<p><strong><em>During such a process, the\napplicant will be prompted to upload the following documents. <\/em><\/strong><\/p>\n\n\n\n<ul><li>Address proof of the Authorized person. <\/li><li>Passport size photo of the Authorized person.<\/li><li>Proof regarding Business name as well as address. <\/li><li>Nature of business.<\/li><li>FSSAI declaration form.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Factory\nLicense<\/h3>\n\n\n\n<p><strong><em>Who needs this: Rice Mill owner<\/em><\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/factory-license\"><strong>Factory License<\/strong><\/a> is typically bestowed by the municipal institution of the respective state. Such a license is issued under the Factory Act. During the submission of a web-based application, the applicant must upload the documents as shown in the list below: <\/p>\n\n\n\n<ul><li>Form-1 (Particular of Room in the Factory)<\/li><li>Stability\u2019s certificate<\/li><li>No Objection Certificate (NOC) issued by the pollution control board<\/li><li>Questionnaire to Form-1<\/li><li>Process Flow Diagram<\/li><li><a href=\"https:\/\/corpbiz.io\/fire-department-noc-in-india\"><strong>Fire NOC<\/strong><\/a>.<\/li><li>No Objection Certificate bestowed by the Local Authority.<\/li><li>Building Drawing Copy<\/li><li>No Objection Certificate issued by Electrical Safety<\/li><li>No Objection Certificate issued by Explosive Department<\/li><li>Ownership\u2019s proof of the \u00a0factory building premises<\/li><li>Notification of Site<\/li><li>Safety Report<\/li><li>List of Directors<\/li><li>On-Site Emergency Plan<\/li><li>MOM and AOA<\/li><li>Resolution for declaration of Occupied<\/li><li>Photograph of premises<\/li><li>Health &amp; Safety Policy<\/li><li>Treasury Challan\/Bank Name<\/li><li>Identity Proof<\/li><li>DIN\/PAN Card<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">GST\u00a0Registration<\/h3>\n\n\n\n<p><strong><em>Who needs this: entities earning more\nthan the threshold limit <\/em><\/strong><\/p>\n\n\n\n<p>In the GST regime, an entity whose yearly revenue surpasses Rs 40 lacs (Rs 10 lacs for NE and hill states) is mandated to avail GST registration as a normal taxable person. For certain entities, <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a> is an absolute mandate. Carrying out business operations in the absence of GST registration is a punishable offense. The defaulters have to confront heavy penalties as per GST Act for non-compliance. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Common documents required for GST registration <\/h4>\n\n\n\n<ul><li>Company\u00a0PAN Card.<\/li><li>Incorporation certificate<\/li><li>MOA (in case of a private &amp; public limited company)<\/li><li>Signatory\u2019s appointment proof.<\/li><li>Signatory\u2019s Aadhaar card.<\/li><li>Signatory\u2019s PAN card.<\/li><li>PAN card of existing directors (in case of a private &amp; public limited company)<\/li><li>Address proof of existing directors (in case of a private and public limited company)<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Import Export Code <\/h3>\n\n\n\n<p><strong><em>Who needs this: Entities\nengaged with exporting activities <\/em><\/strong><\/p>\n\n\n\n<p>Businesses intending to ship rice to other nations will need this code because it is mandatory. Directorate General of Foreign Trade issues the <a href=\"https:\/\/corpbiz.io\/iec-registration\"><strong>IEC<\/strong><\/a> to the eligible applicant against the web-based application and submitted documents.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In light of the above fact, it is safe to say that setting up a Rice business in India is a winning proposition for any start-up. From production to marketing, wholesaling to export, there are multifarious ways to get started with this business model. However, one should be aware of legal obligations (mentioned above) before entering into the Rice business. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/startup-india-seed-fund-scheme\/\">Startup India Seed Fund Scheme: Objectives, Guidelines, and Eligibility Criteria <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rice is extensively consumed in our country and its production and demand are always on the higher side. Thus, setting up a Rice Business could be a winning proposition for anyone seeking a stable source of revenue. One can enter into the rice business in any form such as wholesale, retailing, production, farming, and export. [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":32295,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[968],"tags":[1835],"acf":{"service_id":"250"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":28141,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/32278"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=32278"}],"version-history":[{"count":27,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/32278\/revisions"}],"predecessor-version":[{"id":32307,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/32278\/revisions\/32307"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/32295"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=32278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=32278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=32278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}