Rice exporters told to verify buyers, keep records to secure payments

Rice exporters advised to strengthen buyer verification, documentation to secure payments

New Delhi, October 23

Yash Jangid highlighted the importance of taking precautionary measures before entering export transactions and following a systematic approach to managing payment-related risks.

During the third knowledge session, titled "Documentation, Insurance & Credit", Jangid advised exporters to verify buyer details, carefully select contractual terms and preserve relevant documentation throughout the transaction.

He emphasised that payment security should be an integral part of export planning rather than being addressed only after a transaction encounters difficulties.

The session also highlighted the importance of maintaining regular communication with buyers and taking timely action when payments become overdue. Exporters were advised to notify the Export Credit Guarantee Corporation of India (ECGC) within the applicable timelines and seek collection support when required.

These measures can help exporters strengthen their position in payment disputes, manage credit exposure and improve the chances of recovering outstanding dues.

Responding to a question on safe payment practices for new exporters, the discussion stressed the importance of clear and consistent communication with buyers before proceeding with international transactions

Exporters were encouraged to maintain written communication through emails, ask relevant questions and conduct preliminary discussions to establish expectations regarding the transaction. Clarifying contractual terms, responsibilities and other requirements at an early stage can help reduce misunderstandings and provide a clearer basis for managing commercial relationships.

For businesses entering international trade, maintaining a transparent communication trail and understanding buyer requirements are important steps towards reducing payment uncertainties.

The session underscored the need for a structured risk management approach combining buyer due diligence, suitable contractual arrangements, accurate documentation, timely insurance-related notifications and consistent follow-up on outstanding payments.

As India's rice export sector expands its engagement with international markets, robust credit management and documentation practices can help businesses navigate commercial risks and establish more secure trading relationships.

The discussions at BIRC 2026 highlighted the importance of preparedness and timely action in protecting exporters' financial interests and strengthening confidence in cross-border trade.

— ANI