Global vs Raka

8/19/2019 Global vs Raka

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EXECUTIVE SUMMERY

The main objective of the summer internship is to interlink the theoretical knowledge gained in

the 1

st

year with the practical aspect of the industry. I was fortunate enough to be chosen to workwith RAKA !"#RT$ e%port house and hence privy to contact with almost all the players in an

e%port transaction.

&y stint in RAKA !"#RT during my 'ummer Internship e%posed me to the ground realities of

%port "rocedures . All the theory that had been taught my first year came into working

application and I learnt that theory$ thought very important $was just a base to the real thing was.

I was also given an opportunity to visit the (A'A()A#* &ARKT +AR, which is biggest

onion market in the Asia continent .-or one week working of operation under the guidance on

&r. 'unil )avli $where I came to know the different types onion which are grown in different

seasons like Kharip$ late kharip$ Rabi .

I was offered to work with the company as %port import coordinator and this was pleasant

moment for me to work very closely with the e%port procedure / ,ocumentation of the firm. As

well as shouldered with a great responsibility of the firm to co ordinate with the other department

of the firm 0I $Accounts &arketing and #peration as well as with the clients and other

forwarder / shipping companies.

It was a great moment to learnt the preparation of e%port document such as certificate of origin$

preparing job order $ dispatch mails and maintaining inward as well as outward registers. The

company helped me a lot to perform well and up to the mark always and I was praised for my upto date work regularly in the office.


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INTRODUCTION OF THE PROJECT

In today2s world of the International 3usiness %port and import plays vital role . in developing

countries like I*,IA $this %port and Import plays a very important role in determining balanceof payment of the country .If the e%port is greater than the import $the balance of payment is said

to be in surplus .similarly if the e%port of a country is very is very much lower than irs import

then country2s balance of payment is in deficit.

International trade is an e%change of capital $goods and services across international border or

territories . in most countries$ it represents significant share of gross domestic product 4),"5.

6hile international trade has been present throughout much of history $it2s economic social and

political importance has been on the rise in the recent countries Industriali7ation $advanced

transporting $globali7ation $multinational corporation and outsourcing are all having a major

impact on the international trade system . increasing international trade is a major source ofeconomics revenue for any nation that is considered a world power. 6ithout be limited to the

goods and services produced within their own borders. International trade is in principal not

different form domestic trade as the motivational and the behavior of parties involved in a

trade in a trade does not charge fundamentally depending on whether trade is across a border or

not. The main difference is that international trade is typically more costly than domestic trade.

The reason is the a border typically imposes additional costs such as tariff$ time . Times costs due

to border delays and costs associated with country differences such as languages$ the legal

system or a different culture.


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DOMESTIC vs. INTERNATIONAL BUSINESS

,omestic and international enterprise $ in both the public and private sector$ share the business

objectives of functioning successful to continue operation ."rivate enterprise seek to function

profitable as well . why $ then is international business different from domestic The answer liesin the different across border. *ation states generally have uni8ue government system $laws and

regulation$ currencies $ta%es and duties $ so on$ as well as different cultures and practice . An

individual travelling from his home country $ to be able communicate in the country $ to be

dressed appropriately$ and so on . ,oing business in a foreign country involves similar issue and

is this more comple% than doing business at home .the following section will e%plore some of

these issues. 'pecially comparative advantages is introduced$ the international business

environment is e%plored and for of international sent


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#R)A*IATI#* "R#-I(

• India is biggest agriculture industry And having the contribution in e%port as well as

providing the agriculture product to the world on the large scale. from India there are

many products available which are mainly e%port and through this economy became

'trong. India9s richest state$ &aharashtra contributed :; per cent of the country9sindustrial output and :&ar5 and Rabi 4#ct>*ov. to April>Bune5. Though

onion is produced in three seasons$ the onions produced in rabi season are only suitable

for storage as the variety grown in this season has higher T''$ dry matter and more

number of outer dried intact scales.

• #nion output is estimated to be a record C; lakh tonne in :==C>1=$ compared to around

@; lakh tonne last year$D *asik>based *ational Eorticulture Research and ,evelopment

-oundation 4*ER,-5 Additional ,irector said.

• #nion output is estimated to be a record C; lakh tonne in :==C>1=$ compared to around

@; lakh tonne last year$D *asik>based *ational Eorticulture Research and ,evelopment

-oundation 4*ER,-5 Additional ,irector said.

•

Ee said onion produce per hectare is e%pected to rise by 1< per cent to 1>1F tonne in top producing states of &aharashtra$ )ujarat and &adhya "radesh from 1; tonnes per hectare

in :==@.

• DGse of crop technology and irrigation has improved onion yields$ though acreage

remained at last year9s level of ;.; lakh hectare$D Eowever$ the rich yield is unlikely to

DThe wholesale prices of onions are unlikely to fall significantly because farmers are


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storing the crop in a bigway. Also$ higher production cost may not allow them to sell at

lower rates$D he said. According to *ER,- data$ the wholesale prices were ruling at Rs

>F per kg today at (asalgaon in &aharashtra$ Asia9s biggest onion market

•

India’s onion !"o#$

• India is the second largest onion growing country in the world. Indian onions are famous

for their pungency and are available round the year. Indian onions has two crop cycles$

first harvesting starts in *ovember to Banuary and the second harvesting from Banuary to

&ay.

• 0arietiesH The major varieties found in India are Agrifound ,ark Red$ Agrifound (ight

Red$ *ER,- Red$ Agrifound 6hite$ Agrifound Rose and Agrifound Red $ "usa Ratnar$

"usa Red$ "usa 6hite Round. There are certain varieties in yellow onion which are

suitable for e%port in uropean countries Tana -1$ Arad>E$ 'upre%$ )rane% ;;$ EA =

and )rane% ?:C.• Areas of ultivation H The &ajor #nion producing states area &aharashtra$ Karnataka$

&adhya "radesh$ )ujarat$ 3ihar$ Andhra "radesh$ Rajasthan$ Earyana and Tamil *adu.

&aharashtra ranks first in #nion production with a share of :F.F:J.

• India -acts and -igures H

• There is a lot of demand of Indian #nion in the world$ the country has e%ported

1:$1;5 H3angladesh$ &alaysia$ 'ri (anka$ Gnited Arab

mirates and *epal. The major varieties found in India are Agrifound ,ark Red$

Agrifound (ight Red$ *ER,- Red$ Agrifound 6hite$ Agrifound Rose and Agrifound

Red $ "usa Ratnar$ "usa Red$ "usa 6hite Round. There are certain varieties in yellow

onion which are suitable for e%port in uropean countries Tana -1$ Arad>E$ 'upre%$

)rane% ;;$ EA = and )rane% ?:C.

• #nion e%port was canalised in 1CF?. *ational Agricultural ooperative &arketing

-ederation 4*afed5 was the only canalising agency till 1CCC. 'ubse8uently$ 1: 'tate

Trading nterprises 4'Ts5 along with *afed were designated as the canalising agencies

for e%port of onion. The e%porter had to pay 1J commission to these agencies in order to

get the no>objection certificate for e%ports.


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50

8.7

5.67

1.71

4.28

4.113.41

As the country is e%pecting an all>time>high onion crop in :=1?>1;$ the government about

to face the electorate$ removed the minimum e%port price 4&"5 restrictions$ which were

imposed during winter season as retail prices touched Rs 1==kg.

(ast week$ the director general of foreign trade 4,)-T5 issued a notification to free

onion e%ports. There was a strong demand from growers and e%porter to remove

canalisation as it did not serve any purpose.

DThe canalising agencies did not use the money collected from the e%porters to better the

condition of farmers$D claimed Ajit 'hah$ president$ #nion %porters Association.

The 1< canalising agencies include *A-,$ &aharashtra 'tate Agricultural &arketing

3oard 4&'A&35$ 'pices Trading orporation$ A" 'tate Trading orporation. D#nly five

to si% of the 'Ts were actually functioning$D said *afed ,irector E3 Eolkar.

&'A&3$ which was a leading agency issuing no objection certificates to onion e%porters

has welcomed the decision. D-reeing up of onion e%ports will help boost onion e%ports.

6e never looked at the commission charged for the certificates as a source of revenue forus$D said &'A&3 &anaging ,irector &ilind Akre.

%ports would be crucial to avoid a crash in onion prices as the rabi harvest gathers pace

from April. The current unseasonal rainfall$ though has damaged the standing onion crop$

will not affect the overall onion availability due to record area under the rabi crop.

,espite the arrival of rain>damaged crop in the market$ domestic prices have remained


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firm at Rs kg to Rs @kg as the good 8uality bulb is getting a good price.

SR.NO STATE DISTRICT

1 Maharashtra Nashik, Ahee!"a#ar, $%"e, S&'a(%r

2 )ar"ataka Dhar*a!, Chitra!%r#, +a!a#, a-eri , a#'k&t

3 A"!hra

$ra!esh

)%r"&&'. Me!ak, Ra"#are!!/, C%!!a(ah, Meh&&"a#ar

4 ttar $ra!esh ara"asi, $ata", )a"(%r, %k"&*, A''aha!, aiaa!

5 Tai' Na!% C&iat&re,$eraa!%e,Naakka',Di"!i#%',A""a,Thirihira

(a''i,$eri/ar

6 +%rat ha-"a#ar, S%re"!ra"ar

7 $%"a R&(%r a"! %!hia"a

-ollowing graphical design shows the state wise contribution in onion e%port

5036

2721.

824.8

383.5338.

1535.5 182.4

Maharashtra )ar"ataka +%rat A"!ra $ra!esh

ttar(ra!esh Tai' "a!% $%"a


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Indian e%port for the product fresh onion H India is biggest agriculture industry. This contribution

and share in percentage are shown in following table India2s rank in onion e%port is 1?; with

value around >:1@@@C 4===G',5and percentage with ?.1

%&'(

Ran)

E!"o#$in*

Co+n$#, -$, Va+

' 6orld ;$@@$:CF.== :$


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T6is is $a7 86i96 s6o8s $6 di::#n$ 9o+n$#is in 86i96 India !"o#$s $6 onion

%&'0;'(

S# No. Co+n$#, -$, Va+

' 3angladesh "r ?$;$F


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'( &aldives F$FCC.C :$=?=.@=

'1 G K $@;:.C 1$?;:.@F

'2 Reunion ;$=F1.== 1$:?;.;?

'3 Thailand $C=


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(& &ali =.1; =.=@

(' +emen Republc =.= =.=?

(% Austria =.=C =.=<

Pa* To$a '%5/35'&%.1& %5/&5&(0.'0

COMPANY PROFILE

'hri Ratanlalji 3ansilalji Raka founded the RAKA )R#G" in 1C1. Ee also started the firm #R

4&s #mprakash Ratanlal Raka5 with the head office in *ashik$ &aharashtra. The principles and

values that were observed back then are valued and practised even now. It was in the best

benefits of the business and the customers. ven though he faced many hardships and obstacles

in the initial years of the business$his hardwork and dedication towards his work converted every

obstacle into success.

&r #mprakash Ratanlal Raka$ &r Eemant Ratanlal Raka and &r. "rashant 'ubhash Raka joined

the family business and contributed together to the e%pansion of the business all over the India

and overseas too. Raka group delivers #nions abroad under the firm RAKA !"#RT'. 6e also


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deliver various other products like &ai7e$ "otatoes$ Tomatoes$ "" 3ags and Bute 3ags. 6e also

plan to introduce many fruits and vegetables in the future.

)ut *o. :@$ 'hiv Road$ #pp. 3ank #f 3aroda$ (asalgaon$ (asalgaon ?::


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India produced 1< lack metric tones of onion in :=1:>:=1


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QI have been saying since Buly that there is no shortage of onion

in the country$ says R.". )upta$ director of *ational Eorticulture Research / ,evelopment

-oundation. Q#fficial figures show that :F.; lakh metric tonnes of onion were stored during

-ebruary and &ay. &onthly consumption of the country is only F>@ lakh tonnes per month.... 'o$

where was the problem of shortageS

This table shows the seasons in which onion grows

The below graph shows harvest pattern in leading #nions growing states 4'ourceH *A-,

Report5

S$a$ Jan F7 Ma# A"# Ma, J+n J+, A+* S" O9$ Nov D9

&aharashtr

a

(ean

seaso

n

(ean

seaso

n

(ean

seaso

n

"eak

seaso

n

"eak

seaso

n

(ean

seaso

n

(ean

seaso

n

"eak

seaso

n

(ean

seaso

n

)ujarat

(ean

seaso

n

"eak

seaso

n

(ean

seaso

n

(ean

seaso

n

(ean

seaso

n

(ean

seaso

n

(ean

seaso

n

"eak

seaso

n

(ean

seaso

n

3ihar

(ean

seaso

n

"eak

seaso

n

(ean

seaso

n


15/53

Karnataka

(ean

seaso

n

(ean

seaso

n

(ean

seaso

n

"eak

seaso

n

"eak

seaso

n

"eak

seaso

n

andhra"radesh

(ean

seaso

n

"eak

seaso

n

"eak

seaso

n

(ean

seaso

n

(ean

seaso

n

"eak

seaso

n

"eak

seaso

n

"eak

seaso

n

(ean

seaso

n

&adhya

"radesh

(ean

seaso

n

"eak

seaso

n

(ean

seaso

n

(ean

seaso

n

Rajasthan

(ean

seaso

n

"eak

seaso

n

(ean

seaso

n

(ean

seaso

n

(ean

seaso

n

(ean

seaso

n

Earyana

(ean

seaso

n

"eak

seaso

n

(ean

seaso

n

(ean

seaso

n

(ean

seaso

n

(ean

seaso

n

Gttar

"radesh

(ean

seaso

n

"eak

seaso

n

"eak

seaso

n

"eak

seaso

n

(ean

seaso

n

(ean

seaso

n

(ean

seaso

n

RAKA2' #*I#* !"#RTH

Raka is the biggest name$ almost a legend$ in onion trade in *ashik and (asalgaon. The market

abounds with tales of his bumper transactions that made his Raka Traders such a big name in the

business. D'ometimes in a single week9s business traders make as much they might ordinarily

make in a year$D says an official which knowledge of the market. 6hen Raka arrives$ the market

is energi7ed and crowds follow him. (ike all the other large traders$ he is fast$ flies from onion>

truck to onion>truck in the mandi$ 8uickly buying or rejecting. A layperson can make no sense of

the speed>auction that happens in the market. ,amaged crops$ stock At (asalgaon$ the largest

onion market in India$ its traders of fabled wealth have become a bristling and defensive lot as

consumer prices for the vegetable in various parts of the country push towards the Rs 1== mark.

It did not help them that as this psychological Rs 1== mark was nearing$ onion sold at a modal

rate 4price at which bulk of produce is traded5 of Rs


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benchmark by the rest of the country. 6e are a 1@ year old market leader in providing

ompetitive 3usiness Intelligence on %ports and Imports.

6e started in 1CC$ with over 1;== clients in almost in @ ountry wise Associates$ 6e have

evolved as a company with a uni8ue blend of intricate knowledge of needs of %port Import

ommunity and superior information technologies and tools to deliver )lobal %port ImportTrade Intelligence Information. Eelpful information about %port

FAMILY NEXUS ?

A :=1? report on onion markets by the *ational ouncil of Applied conomic Research$ which$

like the I' report$ identified collusion as a key limitation of wholesale markets$ pointed out

that @>1= traders dominate trade in almost all mandis.

Today$ 'urana is no longer (asalgaon2s top onion trader. +et$ he continues to be among the big

five$ led by Raka Traders$ which accounts for most of the onion traded at (asalgaon. 'urana2s

name does not figure among the list of purchasers in the official records of (asalgaon mandi$

though. Eis son$ "rashant$ who lives in "une$ about 1F=km away from *ashik$ figures on that

list as a top commission agent. A commission agent is a broker who charges a commission of ?>

J from the farmer for arranging the sale of his produce.

*ot faraway$ #mprakash Raka basked in glory. The onion trader was in the middle of

overflowing sweetened milk and mithai. Ee had made a huge profit$ and was celebrating his

election as chairman of (asalgaon &erchants9 ooperative 3ank. The (asalgaon market is

India9s largest onion market.

QEad I had the capacity to hold my stock for a month$ I would have been able to sell my produce

for at least Rs.


17/53

importing onion from gypt$ hina and Afghanistan. The business was booming$ even as

farmers like *yaharkar were back on their fields$ toiling for the ne%t crop.

Though their fates are interlinked and dependent on onions$ Raka9s pleasures and *yaharakar9s

pains are separated by a tricky termPbusiness acumen. The Rakas have it in abundance. And

they are aided by their networks across market committees of *ashik and 9inside9 information.-R'E #*I#*'

MAJOR PLAYER’S

"owerful traders like the Raka manipulate the market. They book stocks from farmers at low

prices$ much in advance. Thousands of tones of onions are hoarded to create a short>supply. And

as the prices spiral up$ the hoarded stocks are released. It was such an artificial scarcity thatallegedly spiked onion prices to record highs.QTraders in (asalgaon and pimpalgaon 4b5

Agricultural "roduce &arket ommittee alone earned more than Rs.1;= crore in just four days

4August 1:>1;5 this year$ says ,r )iridhar "atil$ a farmer>activist . At least .; lack 8uintals of

onion was auctioned at (asalgaon in the past three months. ,ocuments accessed by TE 6K

show that almost all of it went to 1: tradersgroups$ who clearly enjoy monopoly over the

(asalgaon market.

They are 'aibaba Traders$ Eemant Raka$ "uja Investments$ Anand Trading$ 'uresh chandra Bain$

Kisan ,arade$ 'udarshan Traders$ Eiralal Kaluram$ Kesarchand Runwal$ "ushkar Runwal$

'ubhash (unawat and Abhay 'urana .3esides the monopolist 1:$ another big name is the3ramhechha family. It apparently has eight licences through various firms in other A"&s in

*ashik.

Ajay and Akshay 3ramhecha run the business of trading in agriculture produce. They also have a

wholesale shop of food grain and coarse cereals$ and deal in types for four>wheelers$ trucks and

tractors. They have a huge storage facility of onion close to the (asalgaon A"&. The

3ramhechas e%ported over ?; 8uintals of onion to 3angladesh in the first half of 'eptember$

when onion prices were peaking. 'ureshchandra Bain is another major player in the (asalgaon

A"&. Eis nephew *itin Bain also holds a license under his firm "uja Investments. *itin$ a

member of the (asalgaon A"& board of directors$ e%ported F:= 8uintals of onion to *epal and,ubai$ again in the first half of 'eptember.

&ost of these traders finance political leaders during elections. It is also these traders who elect

local politicians to the A"&s$ which are supposed to oversee trade. The cru% of the issue seems

to be here. Though the Gnion government circulated the &odel A"& Act to all states$ its

implementation has been shoddyPespecially in &aharashtra$ home state of Gnion Agriculture


18/53

&inister 'harad "awar.QThe &odel A"& Act allows anyone to participate in the auction and

no license is needed$ but the A"&s do not allow this$ alleges Ravi ,evang$ president of

'hetkari sanghatana$ a farmers9 organi7ation. Q&any big traders have multiple licenses within

their families and they just do not let anyone from outside participate in the business. The

A"&s have become places of robbery.-urthermore$ since only select traders bid in the

auctions$ they form a ring and decide prices$ ahead of the bidding.

QThe auctions are a farce$ says ,ivan. QTraders bid by pulling fingers of each other under a

clothO each finger denotes a value. #nce the bidding is over$ the winner announces the price. The

farmers have to sell their crop to him even if the price does not meet their production cost. They

get beaten up if they refuse. ven traders who tried to participate without licenses have got

beaten up.T6 7o8 *#a"6 s6o8s 6a#vs$ "a$$#n in adin* Onions *#o8in*

s$a$s 4'ourceH *A-, Report

'r.

no

E'

%port

er

"roduct

description

-oreign

country

/ port

Indian

port

0alue

I*R

0alue

G',

Lty /

unit

&od

e

ompan

y

1 1==;C=

=

#*I#*

"K, I*

R,

&'E

3A)'

Gnited

Arab

mirates

,ubai

Bnpt ?1??


19/53

/ )R.6T.

?.;:K)'5

; 1==;C=

=

#*I#*

"AK,

I* &'E

3A)'

4AE

3A) *T

6T.?.;=

K)'./

)R.6T.?.

;: K)'5

&alaysi

a port

Kelang

&undr

a

1:?F?= 1C1.1< 1=;t

n

'ea 0ishal

1==;C=

=

I*,IA*

#*I#*

3A)'

"AK,

I* :@ K)'

*T

Gnited

Arab

mirates

Bebel Ali

Bnpt C:F1= 1?:


20/53

1

1 1==;C=

=

-R'E

I*,IA*

#*I#*

4"AK,

I* &'E

3A)'5

Gnited

Arab

mirates

,ubai

&undr

a :;1?.

@


21/53

-ollowing graphical design shows the Raka2s regional level share in onion e%port

479

269

09

269

Raka

isha'

Tk-Ch&th"i

hain up events which happen onion when e%port

S#. No. +idins

1 Transported to "ackhouse

: Gnloading

< 'orting / )rading

? "acked in netted poly bag si7es

; "recooling

old storageF "alleti7ing

@ Refrigerated trucks

C 'hipment

'torage Re8uirement of fresh onion


22/53

Sr. "& Te(erat%re Re'ati-e %i!it/

st&ra#e

(eri&!

reei"# (&i"t Desri(ti

1 0& 65:709 3:5 &"ths &*

te(erat%re

::

. $aka#i"# a"! its !etai's

a; &r e the

Nette! $&'/ a# sie ha-e ee" #i-e" e'&* >&r !i?ere"t &%"tries. +e"era''/ there

are 60 @''s (er 10 k# a# &> &"i&"

Ta'e .10 Sh&*i"# the (aki"# s(ei@ati&" &> s&e &%"tries

Sr."& I(&rti"# "ati&" $ak sie

1 Ma'a/sia a"! I"!&"esia 10 k#

2 Sri'a"ka 25 k#

3 Si"#a(&re 8 k#

4 $hi''i((i"es 20 k#

5 +%'> &%"tries 5k#,10k#,15k#,a"! 20k#

Ta'e .11 sie &> &"i&" re=%ire! !i?ere"t &%"tries

S. N& C&%"tr/ Sie B;

1 Mi!!'e East a"! +%'>

BD%ai,Shaah,D&ha,M%sat,ahrai",Da

a,)%*ait;

40:60

2 Ma'a/sia,Si"#a(&re,$&rt )e'a"# A>ria"

(&rts

25:30


23/53

3 Sri a"ka 25:30

4 a"#'a!esh,$akista" Ne(a'0 25:30

5 E%r&(e 60:70

6 a(a" 60:70

Do9+


24/53

3ill

In India5 ships transport more than C= per cent of the cargo. It therefore interesting to study the

e%port processed by ship documentation related to it.

"rocessing of an e%port order>>>>>

•%porter operation starts with the receipt of en8uiry by the e%porter from importer. 3ar on

the en8uiry e%porter submits his offer giving complete details of products technical

specific price delivery payment terms etc.

•After the process negotiations importer sends a purchase order follow by letter of credit 4if

applicable5.

•The e%porter manufactures the goods according to the specification given in purchase order.

•As soon as the goods are ready the e%porters invites the representative of %port

inspections agency 4IA5 for pre shipment inspection and obtain the certificate of

inspection.

•After that$ the e%porter prepared following documentsH>>>>

oI*0#I

o"AKI*) (I'T

oAR1 -R#& !'I ,"ART&*T

o&ARI* I*'GRA* "#(I+

o#"+ #- "GREA' #R,R (

•Above those documentation sends to EA by e%porter.

•3ased on these documents EA agent completes the octroi formalities$ obtain port permit

and prepare shipping bill which is a customs documents.

•ustom department check the e%port cargo on the basis of information provided on the

shipping bill. If satisfy then cargo allow to loaded on the board of ship.

•The shipping line gives mate receipts to EA agents after the payment of ocean freights and

port due obtains the bill of lading 43(5 from shipping line .3( is a proof of dispatch of

cargo and also a negotiable document.

•After that$ EA agent send various documents back to e%porter which isP

oustoms attested invoice


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oopy of shipping bill

o-ull set of non board bill of lading.

oopy of purchase order or (

oopies of AR1 -orm

o',- form

•After that the e%porter submitted above these documents for negotiation to the bank which

include H>>>>

oommercial invoice

o"acking list

o',- form

o#riginal copy of purchases order

o ertificate of origin

o3ill of e%change

o'hipment advice

After that$ bank scrutini7es these documents and if found correct make payment to e%porter

against documentations.

EXPORT INVOICE

ELEMENT OF EXPORT INVOICE?;

• %porter

• onsignee

• Invoice *o. and ,ate

• %porter Ref.

• 3uyer order no and date

• #ther reference

• 3uyer 4other than consignee5

•

ountry of origin of goods• ountry of final destination

• Terms of delivery and "ayment

• "re>carriage by

• "lace of receipt by pre>carrier

• 0essel -light no.

• "ort of loading


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• "ort of discharge

• -inal ,estination

• &arks and *os. *o / Kind of pkgs.

• Item code

• ,escription of good

• *et weight

• )ross weight

• Luantity

• Rate I- GR#

• Amount I- GR#

• Amount in words

• ,eclarationH

• Authorised signature

'T"' I*0#(0, I* !"#RT TRA*'ATI#*H

'tep 1

In the case of first time e%porter importer$ they need to apply to ,irector general of foreign

trade 4,)-T5 regional office Importer>%porter code 4I5 number.

'tep :

The e%porter has to register with the concerned e%port promotional council in order to obtain

various permissible given by the government . they need to get registered with sales ta% office$

and even e%porter credit guarantee corporation.

'tep <

The e%porter can now go in for procuring orders$ by first sending a sample $if re8uired. The

importer sends a purchase order once both e%porter and importer have agreed upon the terms and

condition of the contract like pricing$ document$ freight charge$ currency etc.

'tep ?

6ith e%port order in hand $the e%porter starts manufacturing goods or buying them from other

manufacturers.

'tep ;

The e%porter make arrangements for 8uality and obtain a certificate confirming the 8uality of the

goods from inspector of 8uality control.


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'tep

%portable are then dispatched to portsairport for transit.

'tep F

The e%port firm has to apply to an insurance company for marine air insurance cover .4the

e%porter asks the importer to take marine air insurance under cost and freight $free on board etc.

terms of contract5

'tep @

The e%porter contract the clearing and forwarding agent 4c /f5for storing the goods in

warehouse$ A document called shipping bill $re8uired for allowing shipment by customs

authority is presented by the forwarding agent.

'tep C once the goods load end into the ship $a receipt called mate2s receipt is issued by the

captain to the ship superintendent of the port.

'tep 1=

The superintendent calculate port charges and handover to the e%porterc /f agent .

'tep 11

After making the port payment$ the c /f agent or e%porter gets the bill of landing or airway bill

from the official agent if the shipping company or the airline.

'tep 1:

The e%porter applies to the relevant chamber of commerce for obtaining certificate of origin$

starting that the goods originated from India

'tep 1<

The e%porter sends a set of document to the importer$ starting the date of shipment $name of

vessel$ etc.

'tep 1?

6ithin :1 days after shipment the e%porter must present all the document at his bank which

scrutini7es these document against the original letter of credit purchase order.

'tep 1;


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The e%porters bank sends documents to the importers bank which should make the payment on

of before the due date.

!"#RT A*, > ,#G&*TATI#*

"R#-#R&A I*0#I

"erforma invoice$ as the name suggest $is a "erforma of the invoice. it is prepared by an e%porter

and send to the importer for necessary acceptance. it suggest to a buyer the actual invoice would

like and send him when he is ready to purchased the goods.

"AKI*) (I'T

This statement gives the packing details of goods in a prescribed format. it is a very useful

document for custom at the time of e%amination and for warehouse keeper of the buyer to

maintain a record of inventory and to effect delivery.

#&&RIA( I*0#I

An invoice is very important as it contains the names of the e%porter$ importer$ and the

consignee$ and the description of goods. It has to be signed by the e%porter $other document are

prepared by deriving information from the invoice .it is re8uired to be presented before different

authorities for the invoice .it is re8uired to be presented before different authorities for different

purposes.

RTI-IAT #- #RI)I*

This certificate issued by the local chamber of commerce indicates that the goods $which are being e%porter $ are actually manufactured in a specific country mentioned therein. It is sent by

the e%porter to the importer and is useful for the clearance of the goods from the custom

authority of the importing country.

'EI""I*) 3I(( 3I(( #- *TR+

It is a re8uisite for seeking the permission of custom to e%port goods. It contains a description of

e%port goods by seaair .it contain a description of e%port goods $number and kind of packages

$shipping marks $and numbers value of goods $the name of the vessel$ the country of

destination $etc. on the other hand $importers have to submit copies document called bill of entry

for custom clearance .later $a copy has to be given to the bank to the bank for verification.

AR>1 -#R&

This form is an application for the removal of e%cisable goods from the factory premises for

e%port purpose . the AR>1 form has multiple copies which are distributed to different

authorities$ including customers $range office of e%cise$ refund office of e%cise$ etc.


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!EA*) ,(ARATI#* -#R& 4)R ',- -#R&5

The R3I has prescribed has prescribed a )R form 4',-5$a "" form $and '#-T! forms to

declare the e%port transaction .the )R form containsH

a5 name and address of the e%porter and description of goods.

b5 name and address of authori7ed dealer through whom proceeds of e%ports have been or will be

reali7ed.

c5 details of commission and discount due to foreign agent or buyer.

d5 the fill e%port value $giving break up of -#3$ freight$ insurance$ discount$ and commission$

etc.

3I(( #- !EA*)

it is an instrument in writing $containing an order$ signed by the maker $directing a certain personto pay ascertain sum of money only to the order of a person to the bearer of the instrument. it is

commonly known as a draft.

I*'"TI#* RTI-IAT

It is re8uired by some importer and countries in order to get the specification of the goods

shipped attested. The attesting is usually performed by a government agency or by independent

testing organi7ation.

3I(( #- (A,I*)

This document is issued by the shipping company acknowledging of the good mentioned in the

bill$ for shipment on board of the vessel. the 3( is the legal document to be referred in case of

any dispute over the shipment it containH

• The shipping company2s name and address

• The consignee2s name and address

• The port of landing and port of discharge

• 'hipping marks and particulars

• *umber of packages and the goods

• )ross weight and net weight• -reight details and name of the vessel

• 'ignature of the shipping company2s agent.

AIR6A+ 3I((


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This receipt issued by an airline company or its agent for carriage of goods is a contract between

the owner of the goods and the carrier . it should indicate freight pre>paid or freight to collect .the

first three digit of the Airway 3ill *umber represents the code which identifies the carrier.I*'GRA* RTI-IAT

This document$ obtains from the freight forwarder$ is used to assure the consignee that insurance

will cover the loss or damage to the cargo during transit 4 marineair insurance5#*'G(AR I*0#I

This invoice is needed to be submitted for certificate to the embassy of the country concerned. Its

main purpose is to enable the importer2s country to collect accurate and authenticate information

about the value$ volume$ 8uantity$ sources etc. of the import for assessing import duties and for

statistical purpose. It helps the importer to get goods cleared through custom customs without

any under delay.

-#R I&"#RTR !"#RTR #, *G&3R 4I5

)GI,(I*' -#R A""(IA*T'

• Two copies of the application must be submitted otherwise mentioned

• ach individual page of the application has to be signed by the applicant

• a5 part 1 /part ? has to be filled in by all application submitted electronically $no hard

copy of part 1 has to be submitted .

b 5 only relevant portions of part : need to be filled in.

• Application must be accompanied by documents as per details give below H

i. Fo# i


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b5 only relevant portions of part : need to be filled in.

C5 application must be accompanied by document as per details give belowH

• 3ank receipt 4in duplicate5 demand draft left details evidencing payment of application

in free term of appendi% :1 3• 'elf certified copy of "erforma invoice from foreign supplier showing I- value of the

goods

• 'elf certified copy of registration issued by concerned authority

• 'elf certified copy of the recommendation letter by the concerned

• In case of import of gift $ donors2 in original

• In case of import ammunition $a certificate form the chartered accountant and works

accountantcompany secretary showing sales turnover of ammunition 4indigenous and

imported5 during the preceding three licensing years.

i. B>Fo# i


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-or e%port license for '#&T items -or e%port license for '#&T item

)GI,(I*' -#R A""(IA*T'

1F. two copies of the application must be submitted unless otherwise mentioned.

1@. each individual page of the application has to be signed by the applicant

1C.a. part 1 / part ? has to be filled in by all application submitted .in case of application

submitted electronically $ no hard copies of part 1 may be submitted. Eowever in cases where

application are submitted otherwise $hard copy of part 1 has to be submitted.

b. only relevant portioned of part : need to be filled in.

:=.Application must be accompanied by document as per details given below H


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,I ,eclaration form for Import

argo ,eclaration

'. *o. Eeading ,ata

1. Importer code

:. EA ode


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;. ountry of onsignment

. I)& *#. / ,ate

F. &A63 *o. / ,ate

@. EA63 *o./ ,ate

C. &arks / *os.

1=. *o. of packages

11. )ross 6eight

1:. Types of 3 4E6!'?E'5

1


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> urrency Terms of Invoice

4-#3I-I-5

>-reight harges

>Insurance

>#ther charges

vSAMPLE COPY OF DOCUMENTS USED IN EXPORT

'> BILL OF LADIN


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:5 !"#RT RTI-IAT


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0> INVOICE


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;5 (TTR #- "A+&*T

5 (I* #- !"#RT


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F5 (TTR #- R,IT

Ho8 Bi* is a C+7i9 M$#


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Ca9+a$ion? Ln*$6 ! id$6 ! Hi*6$ dividd 7, '2%3 9+7i9 :$ dividd 7, /(

9+7i9


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In$#od+9$ion

'ea freight calculations can broadly be divided into two main componentsO break>bulk and

containeri7ed. In this section we deal with how you should calculate the freight costs of both of

these two types of sea freight.

B#a) 7+) 9a#*o 9a9+a$ions

3reak bulk cargo$ is cargo that is uniti7ed$ palleti7ed or strapped. This cargo is measured along

the greatest length$ width and height of the entire shipment. The cargo is also weighed. 'hipping

lines 8uote break bulk cargo per Dfreight tonD$ which is either 1 metric ton or 1 cubic meter$

which ever yields the greatest revenue.

%ampleH

A case has a gross mass of : &t.

The dimensions of the cargo areH

:.; ! 1 ! : meters

The tariff rate 8uoted by the shipping line isH G', 11=.== weight or measure 4freight ton5

Step 1

&ultiply the meters :.; ! 1 ! : U ; meters ompare to the mass U : &t.

Step 2

alculate the freight with the greater amount either the mass or the dimension. ; ! G', 11=.==U G', ;;=.00

Ra)a’s 9a9+a$ion :o# onion !"o#$ :o#< $6 s6i"


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-reight would be paid on the measurement and not the weight. All shipping lines carrying cargo

in a break>bulk form insist on payment based on a minimum freight charge which is e8uivalent

to one freight ton$ one cubic meter or one metric ton.

F+ Con$ain# oad 9a9+a$ions and s+#96a#*s -reight rates for containers are based on the

container as a unit of freight irrespective of the commodity or commodities loaded therein$

4-AK5 -reight All Kinds. The shipping lines 8uote per bo% 4container5 either a si% or twelve

meter container. -rom time to time$ abnormal or e%ceptional costs arise in respect of which no

provision has been made in the tariffs. -or e%ample a shipping line cannot predict the movement

of the G' ,ollar or the sudden increase of the international oil price. These increases have to be

taken into account by the shipping line in order to ensure that the shipping line continues to

operate at a profit. These increases are called surcharges. All shipping lines accordingly retain

the right to impose an adjustment factor upon their rates taking into account these fluctuations.

All surcharges are e%pressed as a percentage of the basic freight rate. 'urcharges are regularly

reviewed in the light of unforeseen circumstances$ which may arise and bring cause for asurcharge increase.

B+n)# AdG+s$

D3unkersD is the generic name given to fuels and lubricants that provide energy to power ships.

The cost of bunker oil fluctuates continually and with comparatively little warning.

alculationH -#R 3A-

-reight rateH G' ,ollarH 1 :;=.== per >& container

M 3A- ;.:J

G' ,ollar 1 :;=.== ! ;.:J U G' ,ollar ;.==

Add the two amounts together

-reight rateH G ' ,ollar 1


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-reight rate H G' ,ollar 1:;=.== per & containerM A- .


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15 To understand the various document involved in the process of e%port.

:5 To 'tudy the e%act process of the documentation and preparation of documents which.

used in e%port


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'econdary data collectionH>

Invoice

"ackaging list

'hipping bill

Internet

RESEARCH DESIN

Research design is the based framework$ which provides guidelines for the research process. It is

a map or blue print according to which the research is to be conducts. The research design

specifies the methods for data collection / data analysis determine the source of data. &ost

specifically it was a kind of Ds9#i"$iv 9on9+siv #sa#96 who takes care of who$ when$

where$ what$ how and why aspects of the investigation further the researcher used the statistical

method to serve he purpose of project$ it permitted the research to derive more accurate

generali7ation whose reliability could be measured.

In this project the study of e%port and the agriculture is done the india is major country as well as

producer and e%porter country in agriculture. that is why I took this topic to study.

CENTRE? *A'EIK$ &AEARA'ETRA

TOOL USED? T("E#*I / >&AI(

DATA SOURCE? '#*,AR+

ACTIVITY CHART


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KEY LEARNIN

ATI0IT+ "ARTIG(AR

-irst week 'tudy on e%port process and how the e%port

done from the India or regional level.'econd week 'tudy on the product which are e%port.

Third week Ready the consignment for the e%port$ sorting

of the product as per re8uirement.

-orth week 0isit the market yard. And learn the process

of buying the product and storing the product

in 8uantity.

-ifth week 'tudy of various document which used in

e%port

'i%th week ontact to the customer and know the

re8uirement

'eventh week 'tudy on all records$ calculation$ re8uired

document$ eligibility criteria

ight week 'chemes of e%port consignment and how to

claim the amount of subsidy.


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As the student of &3A and there after having opportunity to work with such big name through

that I learned e%actly whole process of the e%port and it2s re8uirement of the document and

format of attaching. They also given me an opportunity to visit the Asia2s biggest onion market

yard where I learn the process of buying and selling of onion and other agriculture product which

are available in such huge 8uantity. The trader2s of market are well known about the types of

product and they can also predict the situation of the rate$ shortage of product$ and also the future

demand of the different product.

It delighted me towards this study because of the following.

15 It was tremendous opportunity for me learned and earned the knowledge of e%port

documentation and procedure. The e%port procedure of the agriculture products in india are so

much different than that of other products this project helps to understand me that.

:5 This project helps me to study the various types of documents re8uire for the e%port procedure

such as I code$ Es code$ shipping bill$ letter of credit$ certificate of e%port$ certificate of8uality$ bill of e%change$ bill of lading $letter of payment$ invoice and etc.


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•Eaving the conversation with the all the employees who work on different role in the

company.

•I also work in the arrangement the basic document .which are used in e%port.

•6ith the help of this project we can calculate the Raka2s contribution in e%port

•6ith the help of this project they was able to analyse company should improve the image

of the firm or organisation

•6ith the help of this project we are able to study the documentation of e%port.

•6ith the help of this project we measure the role of the onion e%port.

•The project report was done on the e%port process and documentation which visualise the

raka2s image

•The raka2s rate is having benchmark in the buying 8uantity

•The services are also given on the state level and many people get work and the

employment


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CONCULISION

After studying this report we come to know that how much India contribute and to which

countries India provides or e%ports the fresh onion. As per the report IndiaOs rank is on fifth place

in whole world and the also it is the one of the major supplier as well as provider of fresh onion

to the world.

In the above study we came to know that the different states which are the major producer states

of fresh onion and these are the major contributor in e%port of fresh onion from India on the

large scale such as &aharashtra$ )ujarat$ Tamil>nadu $Karnataka etc

In these states the &aharashtra is having the important role in producing and e%port of fresh

onion the report shows that from the &aharashtra the *ashik district is one of the major producer

and e%porter district. In the nashik there is huge area available in which fresh is been produce. To

sell and buy this onion there are market yard2s are available in which the buying and selling

process is been done. In this market yard or the Krushi Gttapnna 3ajar 'amiti the authorised

trader2s are their to buy such huge 8uantity of fresh onion these trader are done their business on

domestic as well as the international level.

In *ashik there are also this kind of Trader2s available to carry the such huge stock of the fresh

onion from this report we came to know the one of big trader name is Raka who is active in this

business since last eighteen year2s and he is one of the strong provider as well as the e%porter of

fresh onion in the *ashik. -rom the studied data of e%port onion from *ashik we found that

Raka is having share of ?F.


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BIBLIORAPHY @ APPENDIX

15 %port Import procedure / ,ocumentation Khushpat s. Bain

"oints takenH

a5Registration -ormalities 15 %port (icence 4page no>:@$:C5

:5 Application for Import and %port of Restricted item

4 page no>:C$

Documents

Global vs Raka