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Export Scenario of Rice


Export Scenario of Rice

Basmati-Rice-Farming.jpg


Farming, a profession of hope; a profession which fills the empty stomachs of the human population;
a profession which largely contributes to a country's GDP especially India;
a profession which brings the significant foreign exchange to a nation through it's import and export.

Rice is a crop which is considered as a symbol of prosperity and wealth in our motherland, India. Rice is also one of the major constituent of most of world's population diet, especially of Asians. Rice is the agricultural commodity with the third-highest worldwide production, after sugarcane and maize and India ranks 2nd in production of rice. This leads to opportunity to export worldwide and now india is leading exporter of rice to global markets. In 2018 India had exports worth $7.4 billion contributing to 30.1%of total world rice export followed by Thailand and Vietnam having share 22.7% and 9% respectively in world market. During year 2015-16 it nearly exported basmati 40.45lakh MT and 63.66lakh MT non-basmati rice worth Rs 22718.44 and 15129.09 crores respectively.
India is located in South Asia and is one among the leading producers of rice.
Recently India is the leading exporter of rice -it exports in the north eastern region i.e. to China Japan Korea etc.
The rice export has been increased to Japan from 391.06qt worth Rs 3.37 crores in year 2016-17 to 414.33qt worth Rs 4.18crores in year 2019-20.
While Honkong  imported 1057.84 qt rice worth 8.2 cores in 2016-17 while in year 2019-20 it reduced to 723qt worth Rs 641crore, Taiwan imported  81.7qtl worth
 Rs.68 crores in 2016-17 reduced to 73.52qtl worth .76crores.

To help this booming export, the government of India set up additional 4 zones except the existing 28 zones which also include the basmati export zone in Punjab. The basmati export zone has also been set up in Punjab. It was set up with the basic aim to explore the trade of rice in foreign markets which is best known for its excellent quality.
Export potential of the quality basmati rice, the Indian government took the require measure to increase the exported quantity through the use of better and improved technology along with high yielding variety seeds.  
This has yielded a good result and has led the export of basmati and non basmati rice to increase from 4045822.29 million MT worth million $3478 in 2016 to 4056758.62 million MT worth  million $4169.48 in 2017-18.
The Indian state Haryana is the top basmati rice exporting State, with a compound annual growth rate  of 3 per cent between FY16-19, worth $2.41 billion in FY19 alone.
Gujarat stands second after with shipments of $1.10 billion in FY19 alone. However, Gujarat has posted an impressive CAGR of 47 per cent over FY16-19, also the current trend shows that states like Delhi, West Bengal and Andhra Pradesh are also matching up the pace of export in rice.

But unfortunately, Rice exports  from  India is set to fall a hefty 18-20 per cent this fiscal year because of weak demand from West Asian countries. Geopolitical issues and financial restrictions imposed on Iran lead to reduction in export numbers and hence, Government intervention with new and improved policies is expected to save the golden foreign exchange that the Indian basmati brings us.

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