Approximately 25,000-30,000 containers are lying at ports due to Customs disputes, etc., and basmati rice exports have been severely harmed because 80% is shipped in containers. Farmers’ concerns about insufficient rainfall and low Minimum Support Prices (MSP) procurement coverage have resulted in paddy households selling less of their produce in agricultural produce marketing committee (APMC) yards.
According to Infomerics Valuation and Rating Pvt Ltd, a SEBI-registered and RBI-accredited financial services credit rating company, the volume of rice sold through APMCs has decreased from 17% (2013) to 2.7% (2019) as a result of poor participation of private traders, low infrastructure, unawareness, and other factors.
The report ‘Rice Industry – Emerging Contours,’ which was released on Thursday, is also upbeat about the future of India’s rice industry. It emphasizes the importance of a comprehensive rice strategy that focuses on new systems, technologies, and rice seed varieties. It lists the government initiatives aimed at bringing about structural changes in the sector as well as efficient ways to reduce the sector’s reliance on the whims of the monsoon.
Despite some significant regional differences, generic factors such as government support for rice production, favorable monsoons, an increase in the number of rice processing companies, and increased exports have all benefited the Indian rice industry.
According to the report, rice production has increased in both the Kharif and rabi seasons over the years. Between 2013-14 and 2020-21, total output increased by about 15%.
Both basmati and non-basmati Rice accounts for a sizable portion (more than four-fifths) of the country’s total cereal export basket. Telangana, Tamil Nadu, and Andhra Pradesh account for more than 80% of the total paddy cultivation area, which increased from 30 lakh hectares in FY20 to 35 lakh hectares in FY21.