Dear Snow,
We will be placing 1000 Metric Tons 1121 Grade Basmati Rice - Golden Sella Pesticides Free Rice Order with a Firm in Karnal Haryana India.
We will release this order after our discussions with the Banking Group in Europe that is actively willing to distribute our Fractional Asset Tokens.
Price is finalized for $1,089/Tons FOB Mundra Port Gujarat India
Delivery in 5 Kilo Bags
Minimum Grain Length 8.40 mm
This is the finest quality Pesticides Free Rice....
The Indian firm is requesting that we place this order before the end of Indian Financial Year which is March 31, 2024. And given that our cash flows are getting readied and we are meeting the group in this month, we do plan releasing the order this Month, before the month ends. If any delays, for sure before the 10th of April.
One important point that we are investigating is the ratio of rice we should use internally for our food carts business and externally as subscription base selling.
Our Final Cost including distribution is around $6.65 / 10 LB and we plan selling it for $1 per LB -- Prevailing market rate in US at all stores is $12.80 to $15.00 and as regular consumption, our price is expected to make a huge difference. Selling at $1.00 per LB we gain 3.35/6.65 as our Gross Margin => 50.38%. But, if we consume internally on food carts introducing eatable rice for $1.00 per Bowl of 200 grams $1.50 per 300g, cost of sourcing rice is just $0.147 per 66.67g of uncooked rice. Assuming a final cost of $0.333 per 200g of cooked rice & $0.50 per 300g, we have a clear margin of 200% if we use the rice internally. Plus if the same rice is used for selling the most popular Biryani Rice Bowl, margins are even better. Not just the pricing advantage, even inventory turnover is at least twice a day if its food carts vs weekly 10 LB consumption pattern, if sold subscription based. Also the inventory consumption if through food carts will shoot northward 10 times...to serve 1 Million meals on a daily basis. Over a period our goal is to make people simply stop cooking rice....
1 Million meals will consume 100 T of rice daily and this means 10 days to cycle 1,000 Tons Inventory with 200% value addition each time we circulate meals on a daily basis vs 50% we get on direct rice selling as weekly subscription to consume the same 1,000 tons inventory.
This said, we do have to sell some rice at least to the consumers -- probably we use 75;25 mix to optimize financial compounding and stabilize our brand in the minds of people.
Will further update by this month end, Snow!
