Trends in area, production, productivity and export of rice from India

Transcription

1 Internationl Research Journal of Agricultural Economics and Statistics Volume 3 Issue 1 March, Research Paper Trends in area, production, productivity and export of rice from India PARESH V. JOSHI, MILIND B. BHUJBAL AND SARITA B. BELANEKAR See end of the paper for authors affiliations Correspondence to : PARESH V. JOSHI Department of Agricultural Economics, College of Agriculture Business Management,Narayangaon, PUNE (M.S.) INDIA Paper History : Received : ; Revised : ; Accepted: ABSTRACT : Rice cultivation is the principal activity and source of income for millions of households around the globe, and several countries of Asia and Africa are highly dependent on rice as a source of foreign exchange earnings and government revenue. Worldwide, India stands first in rice area and second in rice production, after China. Within the country, rice occupies one-quarter of the total cropped area. Rice is one of the important cereal food crops of India. It continues to play a vital role in the national food grain supply. India must concentrate on export of rice especially Basmati rice from country, since rice export constitutes considerable share in the national exports. Though India is the second largest producer of rice in the world after China, India is facing stiff competition in the world markets for the export of rice. The export of Basmati rice was highest in the year which was recorded as thousand tones which value was Rs. Crore. The export of non- Basmati rice was reported to be highest in the year i.e thousand tones. KEY WORDS : Rice, Basmati rice, Non-Basmati rice, Export HOW TO CITE THIS PAPER : Joshi, Paresh V., Bhujbal, Milind B. and Belanekar, Sarita B. (2012). Trends in area, production, productivity and export of rice from India, Internat. Res. J. agric. Eco. & Stat., 3 (1): INTRODUCTION Rice cultivation is the principal activity and source of income for millions of households around the globe and several countries of Asia and Africa are highly dependent on rice as a source of foreign exchange earnings and government revenue. Production is geographically concentrated in Western and Eastern Asia. Asia is the biggest rice producer, accounting for 90 per cent of the world s production and consumption of rice. China and India, which account for more than one-third of global population supply over half of the world s rice. Brazil is the most important non-asian producer, followed by the United States. Italy ranks first in Europe. The world s major rice-producing countries - including the two most populous nations, China and India - have emphasized the importance of continuing to develop new rice varieties to guarantee Asia s food security and support the region s economic development. MATERIALS AND METHODS The emphasis of this study was on reviewing the trend in area, production, productivity and export of rice from India. Therefore, the study is based on the secondary data i.e. published data in the form of various reports published by the Department of Agriculture and Cooperation, Ministry of Agriculture, India. The other requisite data were also collected from the various publications and websites of APEDA, DGCI and S etc. and Devarajah and Nataraju (2010). RESULTS AND DATA ANALYSIS The results of the present study as well as relevant discussions have been presented under following sub heads: World rice production : According to the Food and Agriculture Organization (FAO) of the U.N., 80 per cent of the world rice production comes from 7 countries. The figures in Table 1 show

2 PARESH V. JOSHI, MILIND B. BHUJBAL AND SARITA B. BELANEKAR the worldwide rice production and area by countries. Worldwide, India stands first in rice area and second in rice production, after China. It contributes per cent of global rice production (Table 1, Fig. 1). There has been a major decline in world rice production since late 2007 due to many reasons including climatic conditions in many top rice producing countries. Area, production, yield of rice in India : Within the country, rice occupies one-quarter of the total cropped area. Rice is one of the important cereal food crops of India. Rice contributes about 43 per cent of total food grain production and 46 per cent of total cereal production in the country. It continues to play a vital role in the national food grain supply (Table 2). Area, production and yield of rice in India during the last decade are given in the Table 2. The area under rice cultivation was highest during the year i.e million hectares. It was increased by 1.63 million hectares than previous year. It showed the decline trend in i.e million hectares. The production of rice was highest in the year i.e million tones than previous year. The production was decline in the next year with million tones. The yield of rice was highest in the year , it was reported 2202 kg/ha. Afterwards, it showed the decline trend with 2178 kg/ha and 2130 kg/ha in the year and , respectively. Table 1: Worldwide rice production and area Production 000 tonnes, Area 000 hectares,yield: kg/ha Sr. No. Country Production Share in world production(%) Area Yield 1. China India Indonesia Bangladesh Viet Nam Myanmar Thailand Philippines Brazil Japan World Source : Agriculture Statistics at a Glance, 2010 Myanmar, 4.45 Phililippines, 2.45 Thailand, 4.45 Brazil, 1.77 Japan, 16.1 China, Viet nam, 5.65 Bangladesh, 6.85 Indonesia, 8.8 India, Fig.1: Percentage share of major countries in world rice production 100 Internat. Res. J. agric. Eco.& Stat. 3(1)March, 2012:

3 TRENDS IN AREA, PRODUCTION, PRODUCTIVITY & EXPORT OF RICE FROM INDIA West Bengal, Andhra Pradesh, Uttar Pradesh, Punjab, Orissa, Bihar are the major states in area and production of rice in India (Table 3). Uttar Pradesh occupies 6.03 million hectares area followed by West Bengal (5.94 mha), Orissa (4.45mha) and Andhra Pradesh (4.39mha) which is 13.25, 13.03, 9.78 and 9.63 per cent to total area under cultivation in India during the year The production was highest in West Bengal i.e million tones which was per cent to all India rice production. The yield of rice per hectare was highest in Punjab i.e 4022 kg/ha followed by Andhra Pradesh (3246 kg/ha). Basmati rice production in India : Basmati Rice, a variety of long grain rice with a fine texture, is the world s best rice that one can use for cooking and the leading aromatic fine quality rice in the world trade. Basmati rice means the queen of fragrance or the perfumed one. This type of rice has been grown in the foothills of the Himalayas for thousands of years. In India, Basmati rice is characterized by extra long, superfine slender grains having a length to breadth ratio of more than 3.5, sweet taste, soft texture, delicate curvature and an extra elongation with least breadth-wise Table 2 : Area, production and uield of rice in India from to Area: Million hectares, Production: Million tones, Yield: kg/ha Years Area Production Yield Source: Agricultural Statistics at a glance, Table 3: Area, production and yield of rice during in major producing states Area - Million hectares, Production - Million tonnes, Yield - kg./ha State Area % to all - India Production % to all - India Yield West Bengal Andhra Pradesh Uttar Pradesh Punjab Orissa Bihar Tamil Nadu Chattisgarh Assam Karnataka Jharkhand Haryana Maharashtra Madhya Pradesh Gujarat Kerala All India Source : Agricultural Statistics at a glance Internat. Res. J. agric. Eco. & Stat. 3(1) March, 2012:

4 PARESH V. JOSHI, MILIND B. BHUJBAL AND SARITA B. BELANEKAR swelling on cooking. This is non sticky rice. This highly aromatic rice is India s gift to the whole world. Basmati rice production in India stood at estimated 4.5 million tonnes for the year showing the increase of 50 per cent from its output of 3 million tonnes. The country accounts for nearly 70 per cent of the world Basmati rice production. Nearly two third of Basmati rice produced in India is exported. Haryana, Punjab, Uttarakhand, Delhi, Western Uttar Pradesh and J&K has the Basmati growing areas. India mainly produces Basmati 386, Pusa Basmati-1, Pusa Basmati 1121, Basmati 217, Ranbir Basmati, Karnal Local/ Taraori Basmati, Basmati 370, Type-3 (Dehradooni Basmati), Punjab Basmati-1, Haryana Basmati- 1, Kasturi and Mahi Sugandha varieties of Basmati rice. Export of rice from India : India s total national export, agricultural export and rice export from India is given in Table 4. The total national export was increasing over the years it was highest in the year reported to Rs. Crore. During the same year the Agricultural export was highest i.e Rs. Crore than the previous year ( Rs. Crore). The rice export in India showed the fluctuating trend and it was highest in the year i.e Rs. Crore. It was decreased to Rs. Crore in and continuously decreased to Rs. Crore in The percentage share of rice export in total national export and total agricultural exports during to is given in the Table 5. The percentage share of rice export to the nation s total agricultural export was highest in the year (16.83 %) than the previous year (10.64%). It was reduced to per cent during the next year, The percentage share of rice export in total national export was 1.33 per cent in it was consistent with the previous year and the share in agricultural export was per cent which is less than previous year i.e per cent. Table 4 : Rice export from India vis-à-vis country s total and agricultural exports from to (Value in Rupees Crore) Years Total national export Agricultural export Rice export Source : DGCI and S, Ministry of Commerce, GOI 102 Table 5 : Percentage share of agriculture export and rice export to total national export from to Percentage share of agriculture Percentage share of rice export to Percentage share of rice export to Years export to total export agricultural export total export Source : DGCI and S, Ministry of Commerce, GOI) Internat. Res. J. agric. Eco.& Stat. 3(1)March, 2012:

5 TRENDS IN AREA, PRODUCTION, PRODUCTIVITY & EXPORT OF RICE FROM INDIA Export of Basmati and non-basmati rice : The export of Basmati rice and non-basmati rice from India to different major countries in the past is given Table 6. The export of Basmati rice was highest in the year which was recorded as thousand tones which value was Rs. Crore. The export of Non-Basmati rice was reported to be highest in the year i.e thousand tonnes which was greater than previous year ( thousand tonnes), it was reduced to and thousand tones in the year and , respectively. Looking at the export reports of early 2010, India s Basmati rice exports this year seems to hit a record 3 million MT levels in spite of subsidy withdrawal by Saudi Arabia, setbacks to exports in Iran and the Dubai financial crisis. According to the reports, in January 2010, Basmati rice export contracts during the first 9 months of fiscal year crossed the 23 lakh MT, stating per cent growth over the same period a year ago, on the back of high demand for the Pusa 1121 variety and lower benchmark price. The export of Basmati rice to major countries from India during the period to is given in Table 7. Gulf region remains the major market for Indian Basmati rice and inside Gulf, Saudi Arabia accounts for the major chunk of Basmati imports from India. Pakistan is the sole competitor for India in the international market for Basmati rice. During , and total quantities of Basmati rice exported from India were, , and thousand tonnes, in which the percentage share of Saudi Arabia was 45.93, and per cent, respectively. The percentage share of Saudi Arabia has decreased for Basmati rice during the above period, but the export to UAE has increased in linear order from per cent in to per cent in and per cent in , respectively. The export to Iran has also increased in the same order from 0.37 per cent in to per cent in and per cent in However, the export to other Table 6 : Export of Basmati and non Basmati rice from India during to (Quantity: 000 tonnes) (Value : Rs. Crore) Year Basmati rice Non Basmati rice Total rice Quantity Value Quantity Value Quantity Value Source : Agricultural Statistics at a glance, Table 7 : Export of Basmati rice to major countries from India Value in Rs.Crore quantity in 000 tonnes Country Qty Value Qty Value Qty Value Saudi Arabia (45.93) (33.69) (31.75) United Arab Emirates (16.31) (29.30) (30.54) Iran 4.43 (0.37) (10.98) (18.07) Kuwait (9.35) (7.16) (6.91) Yemen Republc (4.22) (2.02) (3.06) United Kingdom (6.03) (4.01) (1.83) United States (3.03) (2.54) (1.28) Unspecified 0.15 (0.01) (0.24) (0.90) Canada (1.14) (1.14) (0.45) Nepal 3.08 (0.26) (0.009) (0.06) Total 11, , (Figures in the parenthesis indicates per cent to total) Source: agriexchange.apeda.gov.in/indexp/reportlist.aspx Internat. Res. J. agric. Eco. & Stat. 3(1) March, 2012:

6 PARESH V. JOSHI, MILIND B. BHUJBAL AND SARITA B. BELANEKAR countries remained constant with slight fluctuation year to year. India s major markets for Basmati rice exports have been Saudi Arabia, Austarlia, Austria, Belgium, Baharin, France, Germany, U.K., Denmark, U.S.A., Canada, Belgium, Kuwait, Italy, Oman, Yemen, Netherlands, Jordan, Indonesia etc. in fact, Saudi Arabia traditionally has been the largest market for Indian Basmati rice. India is also exporting a substantial quantity of non- Basmati rice to various countries in the world. However, the export of non-basmati rice has been fluctuating year to year due to we0ather conditions affecting the production of non- Basmati rice. The export of non-basmati rice from India was on its peak during and a total quantity of lakh metric tons was exported to different countries in the world. Again the export crossed to lakh metric tons during , but during subsequent years, the export of non-basmati rice again came down significantly due to various reasons. Export of non-basmati rice from India during to to different major countries is given in Table 8. The major destinations for India s non-basmati rice exports are Bangaladesh, Australia, Baharin, Ethiopia, Djibouti, France, Germany, U.K., Hong Kong, Korea, Sri-Lanka, Maldives, Mauritius, Malaysia, Nigeria, Ivory-cost, Indonesia, Nepal, Oman, Qtar, Russia, South Afrika, Saudi Arabia, Somalia, Singapore, U.A.E., Y.A.R., etc. The competing countries in the international markets for India for the exports of non-basmati rice are Thailand, Vietnam, Myanmar, China, U.S.A. and Pakistan. The export of non-basmati rice was decreased over the years from thousand tones in to thousand tones in the year Among the major countries of importing non-basmati rice Maldives imported thousand tones non-basmati rice during the year which was highest export of India among the different countries which contributd to per cent to total export, followed by Nepal and Srilanka which contributed per cent and 12,84 per cent to total export of non-basmati rice from India, respectively during the same year. Non-Basmati rice exports have suffered much due to the competition from exporting countries like Thailand, Vietnam and Pakistan because of their low cost of production. In the recent past, export of non-basmati rice was fluctuating year after year due to various reasons. Sometimes export is also affected if good harvest is there in the importing countries, they reduce their import accordingly. If rice exporters make their sincere efforts with Government supporting export policy, non-basmati rice export is expected to increase in future. Problems in export of rice from India : India is facing stiff competition in the world markets for export of rice. Besides, there are many domestic problems for rice exporters. If these internal problems are relaxed to the extent possible, the exporters may find easy way to boost rice export and such measures will go a long way to sustain the exports. Some of the major problems : Indian rice is costlier in the international market as compared to other competing countries in the world because of imposing of various taxes on rice exports, such as Purchase Tax (on indirect export), Market Fees, Rural Development Fund, Administrative charges etc. as per the state Govt. policy. In Pakistan rice meant for exports specially the branded ones, duties are extremely low or duty free. Lack of proper infrastructural facilities. The production cost goes up due to increase in the cost of inputs used for paddy cultivation. That is why when paddy is converted to rice, it becomes costlier Table 8: Export of n on-basmati rice to major countries from India Value in Rs. Crore quantity in 000 tonnes Country Qty Value Qty Value Qty Value 104 Saudi Arabia (4.19) (0.07) (10.66) Maldives (0.33) (1.70) (16.23) United Arab Emirates (5.90) (2.28) (8.46) Malaysia 6.86 (0.12) (0.004) (5.41) Nepal (4.38) (2.59) (14.89) Sri Lanka (1.72) (1.86) (12.84) United Sates (0.91) (0.04) (3.55) Philippines 1.72 (0.03) (0.31) (1.00) Iran (0.21) (0.19) (1.51) Vietnam Sacial Republic 3.54 (0.06) (0.05) (0.75) 8.79 Total (Figures in the parenthesis indicates per cent to total) Source : Internat. Res. J. agric. Eco.& Stat. 3(1)March, 2012:

7 TRENDS IN AREA, PRODUCTION, PRODUCTIVITY & EXPORT OF RICE FROM INDIA making it internationally uncompetitive. Rice production meant for export purpose is having subsidy in other countries, which reduces the cost of production and thereby reducing the cost of rice. Therefore, the export price of rice of such countries is more competitive in the international markets compared to Indian rice. Indian rice prices are inelastic due to relatively high cost of production whereas the major rice producing nations have decreased the price to capture the international markets. Rice mills have not been fully modernized to ensure high milling recovery and reduce the percentage of broken rice. Lack of proper arrangements for production of sufficient quantity of quality seeds needed for cultivation of rice for export purposes. The export is also suffering much due to the competition from other exporting countries like Thailand, Vietnam and Pakistan because the cost of production in these competing countries is low as compared to the cost of production in India. Indian Basmati rice is facing aroma problem, because intensity of aroma in traditional Basmati varieties is not so high as it used to be. Post harvest handling of produce is another important aspect. Generally, farmers are harvesting the crop at different moisture levels and keeping the produce at higher moisture level for a longer period will impair the intensity of aroma. In absence of genetically pure seed of Basmati varieties, a variation in plant height, grain size and maturity of the crop is found. This is one of the major reasons for poor quality of Basmati rice. Measures to improve the export of rice from India : India must concentrate on export of rice especially Basmati rice from country, since rice export constitutes considerable share in the national exports. Though India is the second largest producer of rice in the world after China, India is facing stiff competition in the world markets for the export of rice. Thailand is occupying first position in the international markets due to its better quality and low price. Vietnam has emerged as the world s second largest exporter of rice. Thailand, Vietnam and Pakistan have emerged as the competitors for India in the export of rice. But, there is immense scope for India to take advantage of the new trade opportunities that sustain the export of rice and processed products of rice. This can be achieved only if increase in production made possible by increased investment in R and D coupled with realistic policy incentives adopted by the government. The following are some of the measures suggested to sustain the export of rice : Production of quality seeds and ensuring its availability to farmers at subsidized rates. Acceleration of breeding efforts in the development of high-yielding export-quality rices. The development of new products and processing techniques. Survey may be conducted to identify contiguous zones for cultivation of export quality rice. Maintaining quality standards that match those of international markets. Identification of varieties for rice-based products. Production, procurement and processing of Basmati rice may be organized in a systematic manner for maintaining its quality for export purposes. Research and Development to produce quality rice may be strengthened. Export friendly trade policies. Improvement of port facilities. Modernization of rice mills to ensure high milling recovery and effective availability of by-products for full utilization. Setting up of a board/council to promote the export of rice and rice-based products. Corporate Farming. Authors affiliations: MILIND B. BHUJBAL, Department of Agricultural Economics, College of Agriculture Business Management, Narayangaon, PUNE (M.S.) INDIA SARITA B. BELANEKAR, Department of Horticulture, Krishi Vigyan Kendra, SINDHUDURG (M.S.) INDIA LITERATURE CITE Agricultural Statistics at a Glance (2010). Directorate of Economics and Statistics, Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India, NEW DELHI (India). Annual Report Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India, NEW DELHI, India. March Devarajah, M.K. and Nataraju, M.S. (2010). Trends in export of rice from India. J. Maharashtra Agric. Univ., 35(1): WEBLIOGRAPHY * * * * * * * * Internat. Res. J. agric. Eco. & Stat. 3(1) March, 2012: