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Rice import to Ukraine: market prospects, business opportunities, cost and terms of cargo clearance

Rice import to Ukraine: market prospects, business opportunities, cost and terms of cargo clearance

The demand for rice among Ukrainian consumers has been growing for the third season in a row. The domestic manufacturer has not yet been able to fully satisfy the demand for this product. There are many reasons but two of them are the most significant. First is lack of farmland suitable for its cultivation and  the second one is low profitability due to rather high fuel prices. That’s why importing rice to Ukraine has much more sence than producing it domestically.

Market outlook

Domestic rice production in Ukraine is expected to grow in the future. This might be possible because of climatic changes, expanding the suitable farmlands for its culturing . There are at least four significant reasons justifying the rapid growth of rice imports to Ukraine:
  1. Climate change is a slow process that takes decades.
  2. Farmers need time to adapt to new conditions.
  3. There are no premises for reducing the demand for rice from the domestic consumer.
  4. The possibility that the fuel prices will down to an optimal level for farmers is very low.
From January to May 2020, the volume of imports of this agricultural crop amounted to 51,266 tons for a total of $ 22 million, which is 70% more than the same period in 2019. The problems of domestic production are also indicated by the decreased export of rice in 2020: in the first six months, sales abroad decreased by 17% (223 thousand tons). Cooperating with Mitridat Odessa will help you to take your place in business before competitors do it.

Sources of import

The main supplier of rice to Ukraine is Pakistan, where 33% of the total imported volume is purchased. 30.6% is imported from India, and 11% from Thailand. In total, there are over 600 rice seed companies in Thailand. Over the past 10 years, its constant growth has been observed at an average of 1% per year. Annual production of the product is approximately 500 million metric tons, 226 million are from hybrid rice and 223 million are traditional varieties. India’s production capacity is estimated at 120 million tons per year. The government of the country increases the purchase prices for rice regularly, that encourages local producers to develop the industry. Pakistan exports 8% of the total world volume, and in total, the country grows about 8 million tons of rice per year, of which about 50% is for the external market.

 Business Opportunities

You don’t need to  solve logistics problems yourself. You can trust it to Mitridat Odessa – a professional transport company. We will help you organize the delivery of rice to Ukraine on best terms possible.

Our advantages

Because of our vast experience, we are aware of the needs of importers and the market pitfalls. We do not just solve logistic problems, but we can also consult when you need it. We do not devide businesses on small, medium and large. We have the same pricing terms for everyone.
  • We have established close cooperation with foreign partners and traders from India and Thailand. Due to this, the clients of Mitridat Odessa get an advantage over competitors that are engaged in independent imports and work with other logistics companies.
  • Our prices are lower than those of competitors. We can reduce rates because of our competent approach to organizing transportation. We can ship 26 tons of rice in 20-foot sea containers. Beside maritime shipment we can also provide the land delivery services which can be also done by railroad in case you need to move more than 2 containers.

Why Us

• Average savings of our clients on sea freight is 10% – 15%. • We guarantee the quality of the offered logistics solutions. • Issuing  of a customs declaration with us takes no more than 4 hours. • Delivery is always done according to the selected conditions of Incoterms, import is made out according to the IM-40 mode.

Cost and terms of cargo clearance

The cost of going through the quarantine service ranges from $ 260 per bill of lading. In addition, you pay for placing the container for inspection, according to the tariff scale. The following services are included in the pricing:
  • Placing a container for inspection;
  • Packages for selection
  • Sample selection
  • Payment for laboratory services
  • Work of the inspector
  • Covering the “Food” window
  • Transport and forwarding services
  • Intraport services
  • Confirmation of the quarantine certificate
All containers in the batch are exposed for sampling, but actual sampling usually occurs from only a few. We take care of everything – not just transportation. We also organize warehouse logistics. For more information, please contact us. Phone numbers are listed on the website. Cargo registration takes from 1 to 4 days. A successful business needs quick solutions, and we can provide them.

Need advice?

Request a free call and our managers will call you back as soon as possible!

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