Important points that should be taken into considerations while selecting the commodity for export are:
Points
1. The Exporter’s manufacturing capacity, if he is a manufacturer of a particular commodity.
2. The availability of commodity from other manufacturers when the exporters desire to act as a merchant exporter.
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3. The demand for the commodity in the importing country.
4. The Government of India’s Policy and Regulations in respect of export of various commodities.
5. The Foreign Government’s Policy and Regulations in respect of import of various commodities.
6. Total profitability of such commodities considering cash incentives available, if any.
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7. The import replenishment available, if any.
8. Quota fixation, if any, in respect of such commodities in both the countries.
9. Knowledge and experience of similar exporters in respect of the export of such commodities in various countries.
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The product to be exported has to be carefully selected. For proper selection of a product, it is necessary to study the trends of export of different items from India. The selected product must be in demand in the countries where it is to be exported.
It should be possible to procure or manufacture the selected products at most economic cost, so that it can be competitively priced. It should also be available in sufficient quantity and it should be possible to supply it repeatedly and regularly.
Besides, while selecting the product, it has to be ensured that the exporter is conversant with Government Policy and Regulations in respect of the product selected for export.
The import regulations in respect of such commodities by the importing countries should also be known. It would be preferable if the exporter has previous knowledge and experience of the commodities selected for export.