Sprouted Onion and Payment Deduction – Case Study

A well-known company in Pune, Brahma EXIM working in the agriculture exports, has been received an order of onion from Dubai.

The export Manager has processed that order and they have supplied two containers successfully to Dubai as per the customer requirements and received payment as per the due date.

A good relationship between buyer and seller has been established. The result of that Kaushal is receiving continuous orders from the Dubai Company.

In the month of March, they have sent two containers to Dubai on the term of CIF. Containers have been reached to Jabel Ali port. After custom clearance customer has taken the goods to the factory.

The surprised customer updated Kaushal that, when they have opened the packages, they found sprouted onions and many onions have not outer peel.

Very disappointed, the customer has updated to Brahma about the deduction of payments and they have deducted 10-15 % payment from the invoice.

The terms and conditions of shipment is as below –

Total Quantity – 60 MT (2 Reefer Container)

Size – 55+

Type – Dry Indian Onion

Packaging – 20kg Mesh Bag

Incoterm – CIF, Jabel Ali Dubai

Findings –

·      The quality of the goods was not so good

·      Onion may not be dried properly

·      Container temperature not maintained properly

·      Delayed in clearance

·      Buyers are fraud

Actual Problem –

·      Some lot of onions are wet and the container is Refer. A combination of that leads to the sprouting of onion.

·      Onion Peels are removed due to Improper Handlings.

Solutions –

·      Before shipment of Agriculture goods, must do grading and sort properly

·      Onion must be dried properly

·      The temperature of Refer container should be maintained properly

·      Check the quality of the goods as per the requirement.

·      Take care handling of the goods to avoid further damages