Rice Exports Witnessed Demand and Price Hike
Rice Exports are alleged to increase as Bangladesh is to import prior to its general scheduled months of September-October due to shortage of staples caused by Russia-Ukrainian war. Rice witnessed price hike both nationally and internationally by 20% in Uttar Pradesh, West Bengal and Bihar causing a 10% increase in other states as well.
Despite the pandemic's logistical challenges and strong global demand, India continues to expand its rice export footprint in the African, Asian, and European Union markets, resulting in the world's second-largest rice trade share. In FY22, India exported rice to over 150 nations around the world. Iran, Bangladesh, and Saudi Arabia were the top three major importers of Indian rice, with a massive 232 percent year-on-year increase in exports to Bangladesh.
SIGNIFICANCE OF THE MASSIVE PRODUCTION
Rice is a valuable product that is exported to a variety of countries. India exports both basmati and non-basmati rice to other countries.
Basmati is primarily farmed in J&K, Himachal Pradesh, Punjab, Haryana, Uttarakhand, Western Uttar Pradesh, and Delhi in, India. Saudi Arabia, Iran, the United Arab Emirates, Iraq, Kuwait, the United Kingdom, the United States of America, Yemen, Oman, and Canada are the top Basmati rice export destinations worldwide.
EXPORTS STRATEGIES
According to the Commerce Ministry, India's focus on improving the value chain, which includes key stakeholders, as well as attempts to seek new opportunities in nations or markets for rice exports, has resulted in a tremendous increase in rice exports in recent years. Over time, rice traders may export more worldwide, resulting in higher rewards for farmers.
Despite the logistical hurdles created by the COVID19 pandemic, India continues to increase its rice export footprint in Africa, Asia, and the European Union, resulting in India having the most outstanding share of world rice commerce. India's rice exports grew as a result of strong worldwide demand.
In the last few years, India's focus on building port handling facilities, developing a value chain including critical stakeholders, and exploring new opportunities in nations or markets for rice exports has resulted in a massive increase in rice exports.
IMPORTANT STATS
India, besides China, is the world's second-largest rice producer. According to DGCIS data, India exported USD 2015 million in non-basmati rice in 2019-20, rising to USD 4799 million in 2020-21 and USD 6115 million in 2021-22. The record exports will let rice producers reduce their stockpiles, which will help farmers since the rising demand for Indian rice will likely boost their profits. The massive increase in agri-exports is also considered evidence of the government's intention to enhance agricultural and processed food exports to increase farmers' income.
From April 21 to February 22, India's rice exports increased by 12% yearly to US$ 8.64 billion. A 25% increase in volume vs. a negative 10% increase in average price shows that Indian rice exports are becoming more competitive by increasing market supply rather than price volatility, which is excellent news.
Rice production is expected to reach a record 107.04 million tonnes this season, according to the ministry of agriculture's first advance estimate for the Kharif crop (July 2021-June 2022).