Indian Rice Output May Decline Due to Rainfall Deficiency
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India’s Rice output was 129.7 million tons in the 2021-22 year (July-June). But, Rice output may decline this year due to a fall in the cereal area sown during the ongoing Kharif season (second crop). Paddy sowing in the current Kharif season has been 13% less till August 5 due to rainfall deficiency in the staple grain’s leading producer states.
India’s Rice production in the 2022-23 crop year could decline to 128.5 million tons mainly because of deficiency in monsoon rains, especially in the eastern regions, the United States Department of Agriculture stated. The Department also projected India’s domestic Rice consumption at 108.4 million tons for 2022-23.
According to the Agricultural Ministry, Paddy acreage was 27.43 million hectares as of August 5, against 31.41 million hectares a year earlier. West Bengal, the top producer of paddy, Jharkhand, Bihar, Chhattisgarh, Uttar Pradesh, Madhya Pradesh, Odisha, and Telangana, have reported a fall in acreage. The major Rice-producing states of the country include West Bengal, Uttar Pradesh, Punjab, Tamil Nadu, Andhra Pradesh, Bihar, Chhattisgarh, Odisha, Assam, and Haryana.
While western Uttar Pradesh had a rainfall deficiency of 36% on August 8, in eastern UP, rains were 43% below average. Bihar and Jharkhand reported a rainfall deficiency of 38% and 45%, respectively, while Gangetic West Bengal witnessed 46% fewer rains, according to data from the Indian Meteorological Department.
Indian Rice Exports
India exported 21.2 million tons of Rice in the 2021-22 fiscal year. Out of 21 million tons of Rice shipment in 2021-22, India exported more than 17 million tons of Non-Basmati Rice, and the rest of the volume was aromatic and long grain Basmati Rice.
Regarding volumes, Bangladesh, China, Benin, and Nepal are four major export destinations for Rice.
According to the Directorate General of Commercial Intelligence and Statistics, India exported Non-Basmati Rice equivalent to USD 6,115 million in the 2021-22 fiscal year. India exported Rice to more than 150 countries worldwide in 2021-22. The sales value of 76 countries of them was over a million US dollars. As per AgFlow data, India exported 7.4 million tons of Rice in Jan-Aug of 2022.
The West African country of Benin is one of the major importers of Non-Basmati Rice from India. Apart from this, Nepal, Bangladesh, China, Togo, Senegal, Guinea, Vietnam, Djibouti, Madagascar, Cameroon, Somalia, Malaysia, Liberia, and the United Arab Emirates are fans of Indian Rice. In 2020-21, India shipped Non-Basmati Rice to Timor-Leste, Puerto Rico, Brazil, Papua New Guinea, Zimbabwe, Burundi, Eswatini, Myanmar, and Nicaragua. Many of them were first-time importers.
India has exported Basmati Rice to 125 countries worldwide, including China, Pakistan, America, and Gulf countries. The profit margin of the Basmati Rice export business in India is pretty good. So, farmers are showing enthusiasm towards the cultivation of Basmati Rice because of getting a reasonable price.
The Government of India has allowed only a few states like Uttar Pradesh, Uttarakhand, Punjab, Haryana, Jammu, and Kashmir to sow Basmati paddy. Basmati Rice can be exported abroad only if certified through Basmati Export Development Establishment. The area under cultivation of Basmati paddy is also increasing continuously in the country. From April 1, 2020, to March 31, 2021, 4.6 million tons of Basmati Rice worth Rs 30 thousand crores has been exported abroad from India.
India is considering whether to restrict exports of 100% Broken Rice. The potential export curbs could lift Rice prices globally because India accounts for more than 40% of the world’s Rice shipments. It may impact a few African countries that import 100% Broken Rice for human consumption, though this variety is mainly for feed use.
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