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Wholesale rice distributors and must-know things

Wholesale rice distributors are one of the most important factors contributing to the wholesale rice market when they are in charge of supplying rice for the global market. Asia is the major area having many wholesale rice distributors.

Wholesale rice distributors’ overview

The duty of wholesale rice distributors is to act as a bridge connecting farmers and retailers. They will buy rice in large quantities and sell it to the retailers.

Wholesale rice distributor’s leading products

Rice has many types based on its length or characteristics. However, from the perspective of wholesale rice distributors, they focus on 4 main types.

Rice type Aromatic rice Indica rice Japonica rice Glutinous rice and specialty rice
Origin Thailand, Vietnam, India Eastern India South China Southeast Asia
Price (USD/MT) $97.6 $114.4 $89.6 $124.0
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4 main rice types of wholesale rice distributors

Recently, basmati has become the popular rice, satisfying many consumer groups because it has a pleasant fragrance and taste. Viewing from the wholesale rice distributors’ position, there are 2 primary reasons for the rise of basmati rice.

  • Massive production

More than 4.5 million tonnes of basmati rice were produced in India in 2018. India and Pakistan are major rice producers and exporters, especially India, accounting for 70% of the worldwide basmati production. 

  • Increasing demand

Basmati rice is widely favored in The Middle East, Africa, and Europe. Particularly, nearly 38% of basmati rice is consumed by The Middle East, in which Iran is the largest consumer importing 1.3 million metric tons.

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2 primary reasons for the rise of basmati rice

The location of wholesale rice distributors

Normally, wholesale rice distributors are located in Asia – the largest rice-producing area. In 2020, wholesale rice distributors from India exported 14 million metric tons, while Thai wholesale rice distributors provided 5.7 million metric tons to the international market, worth 3.8 billion USD. Besides, 6.15 million metric tons of Vietnamese rice were exported to the Philippines and other markets. Campuchia is another rising country in the field of rice exports, distributing 690.829 metric tons more than 60 import destinations including China. 

Read more: A list of Vietnamese rice exporters

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Wholesale rice distributors are located in Asia – the largest rice-producing area

Some reasons can be used to explain the popularity of Asian wholesale rice distributors. 

  • Massive rice production in Asian countries such as Thailand, Vietnam, and India will ensure stable supply chains for wholesale rice distributors. In the crop year of 2019/2020, India produced 118.87 million metric tons, followed by Vietnam and Thailand, with 27.1 and 17.66 million metric tons, respectively. 
  • Another reason is the low cost of transportation. India is located right next to major import markets such as West Asia and Africa, so freight costs are more affordable. In contrast, Thailand and Vietnam have a better traffic advantage with markets such as Indonesia, China, the Philippines, and Malaysia. 
  • The last reason is the government’s policies supporting wholesale rice distributors. The value of the baht has increased sharply so that Thai rice exports have risen in value when calculated in USD. As a result, wholesale rice distributors in this country have increased profits. 
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Some reasons can be used to explain the popularity of Asian wholesale rice distributors

Wholesale rice distributors: factors of their development

To gain achievements in the wholesale rice trade, all of the wholesale rice distributors have to be aware of the four main elements.

Stable rice supply chains

The whole rice production capacity affects directly the supply chains of wholesale rice distributors. The amount of wholesale rice offered by distributors will be bigger if the crop has high productivity and generates significant amounts. 

In 2020, Vietnamese rice production volume in the Mekong Delta was 8.46 million metric tons, a decline of 219.1 thousand metric tons compared to 2019. As a result, the export volume of wholesale rice distributors was 3.5% down, which was 6.15 million metric tons.

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Stable rice supply chains

Increasing demand

The import market of wholesale rice distributors is wide such as China, the EU, the Philippines, etc. 

  • China imports about 3 million metric tons, primarily from Cambodian wholesale rice distributors.
  • The EU is another major import destination of Indian and Pakistani wholesale rice distributors, which is 1.460 million metric tons annually.
  • The Philippines is the largest customer of Vietnamese wholesale rice distributors, especially wholesale white rice when Vietnam accounts for nearly 88% of the total rice import in this country.

Due to the increasing demands for the most popular staple, wholesale rice distributors have many opportunities to develop. 

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Increasing demand

Shipment

Transportation expenses have direct impacts on the wholesale rice distributors. Mr. Nguyen Dinh Tung – General Director of Vina T&T Group, said: The freight rate for shipping containers from Vietnam to the US is currently 9,600 USD/container (40 feet), an increase of 5 times compared to the time before the epidemic. Even logistics costs to New York City peaked at 18,000 – 19,000 USD/container, 10 times higher than before the epidemic. 

The dramatic rise in logistic costs forces wholesale rice distributors to increase their CIF prices, which makes many potential importers leave.

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Shipment

Governmental policies

The government’s policies are linked to wholesale rice distributors’ success. 

  • Vietnamese wholesale rice distributors are supported by EVFTA because the European Commission sets an annual import quota for Vietnamese rice at 80,000 metric tons, of which 20,000 metric tons are unmilled rice, 30,000 tons of milled rice, and 30,000 tons of fragrant rice.
  • In March 2008, the Government of India issued a complete ban on the export of ordinary rice. The Indian wholesale rice distributors’ total rice exports then fell from 6.5 million tons in 2007/08 to just 2.5 million tons in 2008/09 (mainly basmati).
  • The Thai Ministry of Commerce will work with the rice exports association to find new partners for wholesale rice distributors to expand the market because Thai rice is highly estimated by its premium quality.
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Governmental policies

Wholesale rice distributors: notes to find them

Searching for reliable wholesale rice distributors is an important step but it is not easy. Reading the following guide will be helpful for retailers to find wholesale rice distributors.

Identify reputable wholesale rice distributors

Trustworthy wholesale rice distributors carry the following features:

  • Transparent locations

During the process of finding wholesale rice distributors, retailers can look at the addresses of the office and the store to evaluate the reputation. Retailers should also know where the wholesale rice distributors source rice from.

  • Necessary qualifications

Trading rice requires many licenses and qualifications to prove the product quality. Business permits and rice certificates such as ISO or HACCP are necessary for wholesale rice distributors

  • Impressive past performances

Reputable wholesale rice distributors will have much cooperation with many customers in the past. Retailers can rely on testimonials to rate the wholesale rice distributors’ past performances. Testimonials are customer reviews about the distributor, its services, and product quality.

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Identify reputable wholesale rice distributors

Avoid scam wholesale rice distributors

The risk of being scammed is significantly high for inexperienced retailers. Unreliable wholesale rice distributors usually have specific characteristics such as

  • Too low price: Rice price is updated on the website of the rice association in different countries. If the offered price is too low compared to the official one, retailers should re-consider the cooperation with the wholesale rice distributors.
  • Unprofessional website and images: Unreliable wholesale rice distributors usually do not focus on creating a good-looking website. Normally, their images of products and factories are sourced from the Internet. 
  • Early payment encouragement: Urging payment before product delivery is a notable sign of unreliable wholesale rice distributors. 
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Avoid scam wholesale rice distributors

Means to find wholesale rice distributors

There are different channels to find wholesale rice distributors 

  • Online sources

Searching wholesale rice distributors on the Internet is time-saving when there are many results for retailers to consider. However, the reliability of those results is not highly estimated.

Another way is to join agricultural forums, in which people usually review and share their experiences in finding wholesale rice distributors.

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Online sources

  • Offline sources

If retailers want to meet wholesale rice distributors in person, agricultural fairs are the best source. Unfortunately, due to the Covid-19 pandemic, agricultural fairs are not allowed to be held.

If retailers do not have much experience, they can work with brokers to find wholesale rice distributors. Brokers are people or companies that have profound knowledge in this field; therefore, they can connect the retailers to suitable wholesale rice distributors.

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Offline sources

Wholesale rice distributors: steps to work with them

Working with wholesale rice distributors will take time when it requires many steps for both 2 sides to achieve the best agreement. Basically, a rice import process includes 5 main stages.

Step 1: The buyer sends the Letter of Intent (LOI) to describe his/her specific rice requirements to the wholesale rice distributors.

A standardized Letter of Intent must include:

  • Company’s general information such as website, address, email,  phone number, registration documents, and CEO passport.
  • Real signature and stamp 
  • Order requirements: the type of order, rice specification, purchase quantity, destination port, expected price, payment term, expected loading time, packaging requirements, and other special notes.
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Steps to work with wholesale rice distributors

Step 2: The wholesale rice distributors will reply with FCO based on the buyer’s LOI. After that, both sides will discuss to come to the final FCO.

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The wholesale rice distributors will reply with FCO based on the buyer’s LOI

Step 3: The wholesale rice distributors and the buyer will work on prices, payment terms, and packaging requirements, and sign a contract. To increase reliability, wholesale rice distributors can send samples to customers to check the quality. On the contrary, the buyer can meet wholesale rice distributors in person to verify the reputation.

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Work on prices, payment terms, and packaging requirements, and sign a contract

Step 4: The wholesale rice distributors will have 2-4 weeks for rice preparation. Then, they will load the goods on ships and send the bill of loading for the buyers to finish the payment. During the delivery, both sides are responsible for tracking cargo ships. Shipping duration depends on the import destination, normally ranging from 1 to 3 weeks.

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The wholesale rice distributors will have 2-4 weeks for rice preparation. Then, they will load the goods on ships

Step 5: After receiving the goods, the buyer must carefully check the rice quantity and quality, and give feedback to the wholesale rice distributors. Then, the wholesale rice distributors will do after-sales service for the buyer to repeat the order.

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Check the rice quantity and quality, and give feedback

Top 4 wholesale rice distributors 

Finding reputable wholesale rice distributors plays an important role because they will provide stable supply chains for other wholesalers. Here is the top 4 wholesale rice distributors.

Shree Krishna Rice Mills 

When talking about Indian wholesale rice distributors, Shree Krishna Rice Mills is an outstanding name. Founded in 1998, this wholesale rice distributor has developed and built a stable supply chain for its global distribution. 

Shree Krishna Rice Mills has received many certificates such as HACCP, ISO 9001:2015, HALAL, and so on. With 25000 metric tons of storage capacity, Shree Krishna Rice Mills is one of the largest wholesale rice distributors in India, offering many selections for the customers.

Now, this wholesale rice distributor is providing three main wholesale rice types:

  • Basmati rice: traditional basmati rice, 1121 basmati rice, 1509 basmati rice, Pusa basmati rice, etc.
  • Non-basmati rice: PR11, PR14, Parmal rice
  • Pesticides free rice: pesticides free raw basmati, pesticides free steam rice, pesticides free sella rice, pesticides free golden sella rice.
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Shree Krishna Rice Mills 

K-Agriculture wholesale rice distributor

K-Agriculture Factory, one of Vietnam’s largest wholesale rice distributors, with 25 years of providing Vietnam’s finest agricultural products to 80 countries. In addition, the wholesale rice distributor is supported by The Vietnam Ministry of Industry and Trade.

K-Agriculture Factory has advanced milling and polishing chains, producing 15000 metric tons monthly. In addition, this wholesale rice distributor has an 8000m2 warehouse with a 21.500-metric-ton storage capacity. With 25 years of experience in rice exports, K-Agriculture Factory has received many certificates such as HACCP, ISO 9000, or FSSC 22000.

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K-Agriculture Factory

K-Agriculture wholesale rice distributor also offers a wide product range with the highest quality and at the best price.

  • ST rice: ST25, ST24, ST21, ST05
  • Jasmine rice
  • Japonica rice
  • Long grain rice

For special discounts and free consultation, contact us now

WhatsApp: +84855555694 (Ms. Evelyn -Sales Manager of K-Agriculture Factory)

Emai: info@gmail.com

Western Rice Mills wholesale rice distributor

Founded in 1964 in Vancouver’s Chinatown, Western Rice Mills is one of the main wholesale rice distributors in North America. During 57 years, Western Rice Mills has established a wide network with many partners such as Walmart, Save-On-Foods, London Drugs, Sysco, etc.

In addition, many products of wholesale rice are certified as organic. Now, the wholesale rice distributor offers long-grain white rice, jasmine rice, black jasmine rice, and brown jasmine rice.

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Western Rice Mills wholesale rice distributor

Riceland wholesale rice distributor

Riceland processes and markets around 2.5 million metric tons of rice every year. Furthermore, this wholesale rice distributor is available in North America as well as in 75 other countries. Riceland’s goods are non-GMO and kosher certified thanks to its own advanced process from the input to final products. 

There are many wholesale rice types for customers to choose such as sushi rice, parboiled rice, jasmine rice, and brown rice.

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Riceland wholesale rice distributor

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