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• Officially known as the Kingdom of Saudi Arabia
• It is the largest Arab state in Western Asia by land
area (approximately 2,250,000 km2 (870,000 sq mi),
and the second-largest in the Arab world after
Algeria.
• Capital – Riyadh
• Currency – Saudi Riyal
• National Anthem: as-Salām al-Malakiyy (Speed for
Glory)
• Saudi Arabia has the world's second largest oil
reserves
• Oil accounts for more than 95% of exports and
70% of government revenue
• It has the world's sixth largest natural gas
reserves.
• It is the only country in the world where
women are not allowed to drive.
• The Prophet of Islam, Muhammad, was born in Mecca in
about 571.
• In the early 7th century, Muhammad united the various
tribes of the peninsula and created a single Islamic religious
polity.
• Following his death in 632, his followers rapidly expanded
the territory under Muslim rule beyond Arabia, conquering
huge swathes of territory (from the Iberian Peninsula in
west to modern day Pakistan in east) in a matter of
decades.
• From the 10th century to the early 20th century Mecca and
Medina were under the control of a local Arab ruler known
as the Sharif of Mecca.
GEOGRAPHICAL SETTING
• Saudi Arabia occupies about 80% of the Arabian
peninsula
• Latitudes 16° and 33° N, Longitudes 34° and 56°
E.
• Saudi Arabia is the world's 13th largest
state.(2,250,000 km2)
• Saudi Arabia is divided into 13 provinces
• Dominated by the Arabian Desert and associated
semi-desert and shrubland
• Saudi Arabia has a desert climate with extremely
high day-time temperatures and a sharp
temperature drop at night.
• Average summer temperatures are around 113
°F (45 °C), but can be as high as 129 °F (54 °C).
• In the winter the temperature rarely drops
below 32 °F (0 °C).
• In the spring and autumn the heat is
temperate, temperatures average around 84
°F(29 °C).
• Annual rainfall is extremely low.
Social Institutions
I. Family
• The family and tribe are the basis of the social
structure.
• Saudis are cognizant of their heritage, their clan, and
their extended family, as well as their nuclear family.
• Saudis take their responsibilities to their family quite
seriously.
• Families tend to be large and the extended family is
quite close.
II. Education & Literacy rate
• The Kingdom brought down the level of illiteracy in
the country from 60 percent in 1972 to 4 percent in
2012.
• The Kingdom started efforts to eradicate illiteracy by
educating adults in 1954.
• According to the ministry’s recent web posting the
general realization to get educated has made
students join schools in all parts of the Kingdom and
pushed up the rate of children going to school to 98.7
percent.
III. Political system
• The king combines legislative, executive, and
judicial functions and royal decrees to form the
basis of the country's legislation.
• The king is also the prime minister, and presides
over the Council of Ministers (Majlis al-
Wuzarāʾ), which comprises the first and second
deputy prime.
IV. Legal System
• Since Saudi Arabia is an Islamic state, its judicial system is
based on Islamic law (Shari’ah) for both criminal and civil
cases.
• At the top of the legal system is the King, who acts as the
final court of appeal and as a source of pardon.
• The Saudi court system consists of three main parts. The
largest is the Shari’ah Courts, which hear most cases in the
Saudi legal system.
• The Shari’ah courts are organized into several categories:
Courts of the First Instance (Summary and General Courts),
Courts of Cassation and the Supreme Judicial Council.
• Supplementing the Shari’ah courts is the Board of
Grievances, which hears cases that involve the government.
• The third part of the Saudi court system consists of various
committees within government ministries that address
specific disputes, such as labor issues.
V. Social Structure
• A major social division is that between guest workers
and local citizens. The working class is largely composed
of temporary immigrants, who also occupy middle-class
positions and a few positions in the upper class.
• Major variations in income and accumulated wealth
exist, with the major categories including the super-
rich, the very rich, and the rich alongside a large
middle-income group and some with limited incomes.
• Only small pockets of poverty persist.
• A strong ideology of egalitarianism is traditional among
Saudi Arabians, whose social and verbal patterns of
interaction stress equality and siblinghood rather than
status differentiation.
• However, degrees of luxury vary greatly.
Im final
I.Food
• Diet in Saudi Arabia today varies between its urban and rural
populations.
• The most common foods in the Saudi diet are wheat, yogurt, dates
and chicken.
• Saudi Arabia produces more than 600 million pounds of dates per
year.
• Saudi Arabia's Islamic heritage outlaws the consumption of pork.
• They eat a lot of chicken. On average, a Saudi eats about 88 pounds
of chicken each year.
• Lamb is also eaten in Saudi Arabia, but it is more of a
delicacy, served during religious holidays, celebrations and special
occasions.
• Saudis also eat a great deal of dairy products like milk and yogurt.
• Saudi Arabian dress strictly follows the principles of hijab (the Islamic
principle of modesty, especially in dress).
• The predominantly loose and flowing, but covering, garments are suited to
Saudi Arabia's desert climate.
• Saudis value a number of traditional and modern pastimes.
• Football (soccer) is extremely popular.
• Many Saudis also participate in activities such as scuba
diving, windsurfing, and sailing.
• The time-honoured pursuit of camel racing developed a new following in
the 1970s.
• During the winter—the coolest part of the year—races are held weekly at
the Riyadh stadium.
• The annual King’s Camel Race, begun in 1974, is one of the sport’s most
important contests and attracts animals and riders from throughout the
region.
• The government of Saudi Arabia has encouraged sports
and athletics by constructing sports and recreation
facilities in all major urban areas.
• The Saudi Arabian Olympic Committee was organized
in 1964 and was recognized internationally the
following year. It has sent athletes to the Summer
Games since 1972 but has not fielded a team for the
Winter Games. The country also sends athletes to the
Asian Games.
• Scuba diving, windsurfing, sailing and basketball are
also popular, played by both men and women, with
the Saudi Arabian national basketball team winning
bronze at the 1999 Asian Championship.
IV. Social Security• Small populations and high gross domestic products allow the Gulf
states to fund the welfare of their people without needing to
impose many financial obligations upon them.
• Nationals are automatically provided with extensive state help,
including medical care, sickness and maternity cover, child care,
pensions, unemployment benefit and in some instances housing
and disability benefits.
• Foreign workers have access to medical facilities, but to little else.
• Saudi Arabia experimented with a social security system some years
ago, designed to include foreign workers and retirees. The plan was
abandoned a few years later, however, one of the problems being
the transient nature of the working population, largely made up of
expatriates. (To their credit, the Saudi Arabian authorities arranged
refunds to people who had made contributions.)
• The Ministry of Health is responsible for the
supervision of healthcare and hospitals in both
the public and private sectors. The system offers
universal healthcare coverage.
• The healthcare system has two tiers.
– One is a network of primary healthcare centers and
clinics that provide
preventive, prenatal, emergency, and basic
services, as well as mobile clinics for remote rural
areas.
– The second tier is represented by the hospitals and
specialized treatment facilities located in urban areas.
Im final
• GDP - $666.805 billion
• Per capita Income - $22,663
• HDI - 0.770 (56th rank)
• Inflation Rate – 4.20%
• Balance of payment: surplus $28 billion
• GDP - composition by sector
• agriculture: 2%
industry: 69.1%
services: 28.9% (2011 est.)
• Labor force
• 7.63 million
note: about 80% of the labor force is non-national
• Budget
revenues: $295.7 billion
expenditures: $214.3 billion
• Taxes and other revenues
51.2% of GDP (2011 est.)
• Budget surplus (+) 14.1% of GDP
• Reserves of foreign exchange and gold
• $541.1 billion (31 December 2011 est.)
• Modes:
• Airports: 216 (2012)country comparison to
the world: 27
• Pipelines: condensate 212 km; gas
2,846 km; liquid petroleum gas 1,183
km; oil 4,232 km; refined products
1,151 km
• Railways: 1,378 kmcountry comparison to
the world: 82
• Roadways 221,372 km country comparison
to the world: 23
• Waterways: 2,000 km (mainly used for
recreation on Murray and Murray-Darling
river systems) (2011) country comparison
to the world: 43
– Ports and terminals:
– Ad Dammam, Al Jubayl, Jeddah, Yanbu al Bahr
• Telephones - main lines in use - 4,166,000
(country comparison to the world: 40)
• Cellular - main lines in use - 24 (country comparison
to the world: 40)
• Internet country code: .sa
• Internet hosts: 147,202 (2012) country
comparison to the world: 76
• Internet users: 9.774 million (2009) country
comparison to the world: 30
• Broadcast media: broadcast media are state-
controlled; state-run TV operates 4
networks.
Im final
• Oil accounts for more than 95% of
exports and 70% of government
revenue
• Saudi Arabia officially has about 260
billion barrels of oil reserves
• Comprises about one-fifth of the world's
proven total petroleum reserves.
• Saudi Arabia is the 19th largest exporter
and the 20th largest import market in
the world.
• Exports
• $359.9 billion
• Exports - commodities
• petroleum and petroleum products
90%
• Exports - partners
• Japan 13.9%, China 13.7%, US
13.4%, South Korea 10.2%, India
7.2%, Singapore 4.9% (2011)
• Imports
$117.4 billion (2011 est.)
$97.43 billion (2010 est.)
• Imports - commodities
machinery and
equipment, foodstuffs, chemicals, motor
vehicles, textiles
• Imports - partners
China 12.8%, US 11.9%, Germany
7.1%, South Korea 6%, Japan 5.6%, India
5.3%, Italy 4.1% (2011)
Im final
Im final
• Water is scarce in Saudi Arabia
• Foodstuffs like vegetable and fruits are found in less
quantity in Saudi Arabia
• Significant changes have been made regarding
irrigation, but there are still many efforts that Saudi
Arabia must overcome before they will be self-
sufficient
• Vegetable an fruits producing Saudi industries are
protected by the imposition of 20% import duties on
certain commodities.
• Tariff rates vary from 0 – 4%.
• Items produced in the Kingdom are assessed at an import
tariff of 20%.
• India with its wide variability of climate and soil produces a large
range of horticultural crops such as fruits and vegetables.
• India is the second largest producer of fruits and vegetables in the
world.
• Horticultural crops occupy about seven per cent of the gross cropped
area of the country, constituting about 25 per cent of the gross value of
• agricultural output.
The per capita consumption of FRUITS in the rural areas has
increased from 2.71 kgs per month in 1993-94 to 4.04 kgs per month in
2009-10.
• The corresponding figures for urban areas were 2.91 kgs and 4.12 kgs
per month.
Country/Year 2008/09 2009/10 2010/11
U.A.E 81.83 (19.32) 92.86 (19.40) 87.35 (18.56)
Saudi Arabia 57.61 (13.60) 66.38 (13.87) 61.47(13.06)
Netherlands 64.16 (15.15) 67.42 (14.09) 60.59 (12.88)
Bangladesh 45.26 (10.68) 39.53 (8.26) 44.34 (9.42)
U.K. 31.36 (7.40) 39.01(8.15) 33.63 (7.15)
Others* 143.40 (33.85) 173.41 (36.23) 183.17 (38.93)
Total 423.62 (100.00) 478.61(100.00) 470.55 (100.00)
Small quantities
Frequent purchases
Quick mix
Lot of importance to flavour
Health conscious
Im final
• India’s Export of vegetable and fresh fruits
• production of fruit and vegetables by India: 14% of world
wide production
• India's export of fruit and vegetables: 1 % of world's fruit/veg
exports
• India’s Export of Agriculture & related product in 2007-08 was
6.8 Bil USD
• India’s Fresh fruits and Vegetable export in 2007-08 was 518
Mil USD
1. Export share of the focused product has gone up by
considerably
2. Scientific, Planned and organized farming came into larger
existence as per demand and supply position in International
& Local Markets.
3. Farmers living standard improved considerably as getting
directly monitory benefits
4. Production level quality and traceability improved.
5. 9 to 10 month of production has been possible as export
and local demand has developed.
6. Very important is saving valuable time at various levels of
export.
7. Increase of Employment opportunities in rural areas.
• There are three primary marketing regions in
the Kingdom:
• Western.(the city of Jeddah as the main
commercial center)
• Central.(Riyadh)
• Eastern.(Eastern province cities)
• Many companies import vegetable or goods for their own use or for direct
sales to end-users, making the location and number of retail outlets an
important factor.
• INDIAN exporters might find it beneficial to appoint different agents or
distributors for different regions.
• Multiple agencies or distributors might also be assigned to handle diverse
vegetable and fruits market.
• Although there is no requirement for exclusive distributorships, Saudi
Ministry of Commerce policy is that all such arrangements be exclusive
with respect to either geographic region or product.
Im final
There are very good prospects for companies who want to export their
vegetable and fruits to the Saudi Arabian market. However, there are
certain marketing procedures and sales techniques which have to be
observed in order to develop and sustain business relationships over a
long period of time
• The Saudi market should be constantly reviewed for product
adaptation and change.
• Exporters should ensure regular supplies as per specifications, at
the specified time and place already agreed upon and at the
stipulated prices.
• Any subsequent and sudden price changes, even pertaining to
after-sales services, should be avoided.
• Exporters' contacts with importers in Saudi Arabia should be
direct and regular.
• Complete product lines, rather than single products, should
be introduced into the Saudi market whenever possible in
order to benefit from greater demand stimulation and cost
reductions.
• Exporters are required to check with Saudi importers or
directly with the Saudi Arabian Food Standards Organization.
• The exchange rate of the riyals has been fixed at 14 rupee to
since 1986. Reasonable interest rates have greatly facilitated
market penetration in vegetables and fruits market.
• Consequently, Saudi importers expect INDIAN producers to
have a more stable pricing policy than their foreign
competitors.
• Products are usually imported on a CIF basis, and mark-ups
depend largely on what the vendor feels that the market will
bear.
• No standard formula exists for determining
mark-up rates. For the INDIAN supplier,
some give-and-take is expected in
preliminary negotiations
• The asking price is often reduced, to entice the
client and because of the Saudi interest in
bargaining and personal exchange.
• Financing has become a leading consideration in
purchasing, especially for investment Vegetables
and repeat orders.
• As leveraged transactions are becoming the
norm, Saudis have come to understand that an
attractive financial package can be more
desirable than a low up-front price.
Im final

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Im final

  • 2. • Officially known as the Kingdom of Saudi Arabia • It is the largest Arab state in Western Asia by land area (approximately 2,250,000 km2 (870,000 sq mi), and the second-largest in the Arab world after Algeria. • Capital – Riyadh • Currency – Saudi Riyal • National Anthem: as-Salām al-Malakiyy (Speed for Glory)
  • 3. • Saudi Arabia has the world's second largest oil reserves • Oil accounts for more than 95% of exports and 70% of government revenue • It has the world's sixth largest natural gas reserves. • It is the only country in the world where women are not allowed to drive.
  • 4. • The Prophet of Islam, Muhammad, was born in Mecca in about 571. • In the early 7th century, Muhammad united the various tribes of the peninsula and created a single Islamic religious polity. • Following his death in 632, his followers rapidly expanded the territory under Muslim rule beyond Arabia, conquering huge swathes of territory (from the Iberian Peninsula in west to modern day Pakistan in east) in a matter of decades. • From the 10th century to the early 20th century Mecca and Medina were under the control of a local Arab ruler known as the Sharif of Mecca.
  • 5. GEOGRAPHICAL SETTING • Saudi Arabia occupies about 80% of the Arabian peninsula • Latitudes 16° and 33° N, Longitudes 34° and 56° E. • Saudi Arabia is the world's 13th largest state.(2,250,000 km2) • Saudi Arabia is divided into 13 provinces • Dominated by the Arabian Desert and associated semi-desert and shrubland
  • 6. • Saudi Arabia has a desert climate with extremely high day-time temperatures and a sharp temperature drop at night. • Average summer temperatures are around 113 °F (45 °C), but can be as high as 129 °F (54 °C). • In the winter the temperature rarely drops below 32 °F (0 °C). • In the spring and autumn the heat is temperate, temperatures average around 84 °F(29 °C). • Annual rainfall is extremely low.
  • 7. Social Institutions I. Family • The family and tribe are the basis of the social structure. • Saudis are cognizant of their heritage, their clan, and their extended family, as well as their nuclear family. • Saudis take their responsibilities to their family quite seriously. • Families tend to be large and the extended family is quite close.
  • 8. II. Education & Literacy rate • The Kingdom brought down the level of illiteracy in the country from 60 percent in 1972 to 4 percent in 2012. • The Kingdom started efforts to eradicate illiteracy by educating adults in 1954. • According to the ministry’s recent web posting the general realization to get educated has made students join schools in all parts of the Kingdom and pushed up the rate of children going to school to 98.7 percent.
  • 9. III. Political system • The king combines legislative, executive, and judicial functions and royal decrees to form the basis of the country's legislation. • The king is also the prime minister, and presides over the Council of Ministers (Majlis al- Wuzarāʾ), which comprises the first and second deputy prime.
  • 10. IV. Legal System • Since Saudi Arabia is an Islamic state, its judicial system is based on Islamic law (Shari’ah) for both criminal and civil cases. • At the top of the legal system is the King, who acts as the final court of appeal and as a source of pardon. • The Saudi court system consists of three main parts. The largest is the Shari’ah Courts, which hear most cases in the Saudi legal system. • The Shari’ah courts are organized into several categories: Courts of the First Instance (Summary and General Courts), Courts of Cassation and the Supreme Judicial Council. • Supplementing the Shari’ah courts is the Board of Grievances, which hears cases that involve the government. • The third part of the Saudi court system consists of various committees within government ministries that address specific disputes, such as labor issues.
  • 11. V. Social Structure • A major social division is that between guest workers and local citizens. The working class is largely composed of temporary immigrants, who also occupy middle-class positions and a few positions in the upper class. • Major variations in income and accumulated wealth exist, with the major categories including the super- rich, the very rich, and the rich alongside a large middle-income group and some with limited incomes. • Only small pockets of poverty persist. • A strong ideology of egalitarianism is traditional among Saudi Arabians, whose social and verbal patterns of interaction stress equality and siblinghood rather than status differentiation. • However, degrees of luxury vary greatly.
  • 13. I.Food • Diet in Saudi Arabia today varies between its urban and rural populations. • The most common foods in the Saudi diet are wheat, yogurt, dates and chicken. • Saudi Arabia produces more than 600 million pounds of dates per year. • Saudi Arabia's Islamic heritage outlaws the consumption of pork. • They eat a lot of chicken. On average, a Saudi eats about 88 pounds of chicken each year. • Lamb is also eaten in Saudi Arabia, but it is more of a delicacy, served during religious holidays, celebrations and special occasions. • Saudis also eat a great deal of dairy products like milk and yogurt.
  • 14. • Saudi Arabian dress strictly follows the principles of hijab (the Islamic principle of modesty, especially in dress). • The predominantly loose and flowing, but covering, garments are suited to Saudi Arabia's desert climate.
  • 15. • Saudis value a number of traditional and modern pastimes. • Football (soccer) is extremely popular. • Many Saudis also participate in activities such as scuba diving, windsurfing, and sailing. • The time-honoured pursuit of camel racing developed a new following in the 1970s. • During the winter—the coolest part of the year—races are held weekly at the Riyadh stadium. • The annual King’s Camel Race, begun in 1974, is one of the sport’s most important contests and attracts animals and riders from throughout the region.
  • 16. • The government of Saudi Arabia has encouraged sports and athletics by constructing sports and recreation facilities in all major urban areas. • The Saudi Arabian Olympic Committee was organized in 1964 and was recognized internationally the following year. It has sent athletes to the Summer Games since 1972 but has not fielded a team for the Winter Games. The country also sends athletes to the Asian Games. • Scuba diving, windsurfing, sailing and basketball are also popular, played by both men and women, with the Saudi Arabian national basketball team winning bronze at the 1999 Asian Championship.
  • 17. IV. Social Security• Small populations and high gross domestic products allow the Gulf states to fund the welfare of their people without needing to impose many financial obligations upon them. • Nationals are automatically provided with extensive state help, including medical care, sickness and maternity cover, child care, pensions, unemployment benefit and in some instances housing and disability benefits. • Foreign workers have access to medical facilities, but to little else. • Saudi Arabia experimented with a social security system some years ago, designed to include foreign workers and retirees. The plan was abandoned a few years later, however, one of the problems being the transient nature of the working population, largely made up of expatriates. (To their credit, the Saudi Arabian authorities arranged refunds to people who had made contributions.)
  • 18. • The Ministry of Health is responsible for the supervision of healthcare and hospitals in both the public and private sectors. The system offers universal healthcare coverage. • The healthcare system has two tiers. – One is a network of primary healthcare centers and clinics that provide preventive, prenatal, emergency, and basic services, as well as mobile clinics for remote rural areas. – The second tier is represented by the hospitals and specialized treatment facilities located in urban areas.
  • 20. • GDP - $666.805 billion • Per capita Income - $22,663 • HDI - 0.770 (56th rank) • Inflation Rate – 4.20% • Balance of payment: surplus $28 billion • GDP - composition by sector • agriculture: 2% industry: 69.1% services: 28.9% (2011 est.)
  • 21. • Labor force • 7.63 million note: about 80% of the labor force is non-national • Budget revenues: $295.7 billion expenditures: $214.3 billion • Taxes and other revenues 51.2% of GDP (2011 est.) • Budget surplus (+) 14.1% of GDP • Reserves of foreign exchange and gold • $541.1 billion (31 December 2011 est.)
  • 22. • Modes: • Airports: 216 (2012)country comparison to the world: 27 • Pipelines: condensate 212 km; gas 2,846 km; liquid petroleum gas 1,183 km; oil 4,232 km; refined products 1,151 km • Railways: 1,378 kmcountry comparison to the world: 82 • Roadways 221,372 km country comparison to the world: 23 • Waterways: 2,000 km (mainly used for recreation on Murray and Murray-Darling river systems) (2011) country comparison to the world: 43 – Ports and terminals: – Ad Dammam, Al Jubayl, Jeddah, Yanbu al Bahr
  • 23. • Telephones - main lines in use - 4,166,000 (country comparison to the world: 40) • Cellular - main lines in use - 24 (country comparison to the world: 40) • Internet country code: .sa • Internet hosts: 147,202 (2012) country comparison to the world: 76 • Internet users: 9.774 million (2009) country comparison to the world: 30 • Broadcast media: broadcast media are state- controlled; state-run TV operates 4 networks.
  • 25. • Oil accounts for more than 95% of exports and 70% of government revenue • Saudi Arabia officially has about 260 billion barrels of oil reserves • Comprises about one-fifth of the world's proven total petroleum reserves. • Saudi Arabia is the 19th largest exporter and the 20th largest import market in the world.
  • 26. • Exports • $359.9 billion • Exports - commodities • petroleum and petroleum products 90% • Exports - partners • Japan 13.9%, China 13.7%, US 13.4%, South Korea 10.2%, India 7.2%, Singapore 4.9% (2011)
  • 27. • Imports $117.4 billion (2011 est.) $97.43 billion (2010 est.) • Imports - commodities machinery and equipment, foodstuffs, chemicals, motor vehicles, textiles • Imports - partners China 12.8%, US 11.9%, Germany 7.1%, South Korea 6%, Japan 5.6%, India 5.3%, Italy 4.1% (2011)
  • 30. • Water is scarce in Saudi Arabia • Foodstuffs like vegetable and fruits are found in less quantity in Saudi Arabia • Significant changes have been made regarding irrigation, but there are still many efforts that Saudi Arabia must overcome before they will be self- sufficient
  • 31. • Vegetable an fruits producing Saudi industries are protected by the imposition of 20% import duties on certain commodities. • Tariff rates vary from 0 – 4%. • Items produced in the Kingdom are assessed at an import tariff of 20%.
  • 32. • India with its wide variability of climate and soil produces a large range of horticultural crops such as fruits and vegetables. • India is the second largest producer of fruits and vegetables in the world. • Horticultural crops occupy about seven per cent of the gross cropped area of the country, constituting about 25 per cent of the gross value of • agricultural output. The per capita consumption of FRUITS in the rural areas has increased from 2.71 kgs per month in 1993-94 to 4.04 kgs per month in 2009-10. • The corresponding figures for urban areas were 2.91 kgs and 4.12 kgs per month.
  • 33. Country/Year 2008/09 2009/10 2010/11 U.A.E 81.83 (19.32) 92.86 (19.40) 87.35 (18.56) Saudi Arabia 57.61 (13.60) 66.38 (13.87) 61.47(13.06) Netherlands 64.16 (15.15) 67.42 (14.09) 60.59 (12.88) Bangladesh 45.26 (10.68) 39.53 (8.26) 44.34 (9.42) U.K. 31.36 (7.40) 39.01(8.15) 33.63 (7.15) Others* 143.40 (33.85) 173.41 (36.23) 183.17 (38.93) Total 423.62 (100.00) 478.61(100.00) 470.55 (100.00)
  • 34. Small quantities Frequent purchases Quick mix Lot of importance to flavour Health conscious
  • 36. • India’s Export of vegetable and fresh fruits • production of fruit and vegetables by India: 14% of world wide production • India's export of fruit and vegetables: 1 % of world's fruit/veg exports • India’s Export of Agriculture & related product in 2007-08 was 6.8 Bil USD • India’s Fresh fruits and Vegetable export in 2007-08 was 518 Mil USD
  • 37. 1. Export share of the focused product has gone up by considerably 2. Scientific, Planned and organized farming came into larger existence as per demand and supply position in International & Local Markets. 3. Farmers living standard improved considerably as getting directly monitory benefits 4. Production level quality and traceability improved. 5. 9 to 10 month of production has been possible as export and local demand has developed. 6. Very important is saving valuable time at various levels of export. 7. Increase of Employment opportunities in rural areas.
  • 38. • There are three primary marketing regions in the Kingdom: • Western.(the city of Jeddah as the main commercial center) • Central.(Riyadh) • Eastern.(Eastern province cities)
  • 39. • Many companies import vegetable or goods for their own use or for direct sales to end-users, making the location and number of retail outlets an important factor. • INDIAN exporters might find it beneficial to appoint different agents or distributors for different regions. • Multiple agencies or distributors might also be assigned to handle diverse vegetable and fruits market. • Although there is no requirement for exclusive distributorships, Saudi Ministry of Commerce policy is that all such arrangements be exclusive with respect to either geographic region or product.
  • 41. There are very good prospects for companies who want to export their vegetable and fruits to the Saudi Arabian market. However, there are certain marketing procedures and sales techniques which have to be observed in order to develop and sustain business relationships over a long period of time • The Saudi market should be constantly reviewed for product adaptation and change. • Exporters should ensure regular supplies as per specifications, at the specified time and place already agreed upon and at the stipulated prices. • Any subsequent and sudden price changes, even pertaining to after-sales services, should be avoided.
  • 42. • Exporters' contacts with importers in Saudi Arabia should be direct and regular. • Complete product lines, rather than single products, should be introduced into the Saudi market whenever possible in order to benefit from greater demand stimulation and cost reductions. • Exporters are required to check with Saudi importers or directly with the Saudi Arabian Food Standards Organization.
  • 43. • The exchange rate of the riyals has been fixed at 14 rupee to since 1986. Reasonable interest rates have greatly facilitated market penetration in vegetables and fruits market. • Consequently, Saudi importers expect INDIAN producers to have a more stable pricing policy than their foreign competitors. • Products are usually imported on a CIF basis, and mark-ups depend largely on what the vendor feels that the market will bear.
  • 44. • No standard formula exists for determining mark-up rates. For the INDIAN supplier, some give-and-take is expected in preliminary negotiations • The asking price is often reduced, to entice the client and because of the Saudi interest in bargaining and personal exchange. • Financing has become a leading consideration in purchasing, especially for investment Vegetables and repeat orders. • As leveraged transactions are becoming the norm, Saudis have come to understand that an attractive financial package can be more desirable than a low up-front price.