A REPORT

ON

RICE EXPORTS FROM

INDIA

SUBMITTED TO:

SUBMITTED BY:

PROF. NAVDEEP KAUR

GAURAV LOCHAB
ROLL NO: 11
MBA IB

Rice Exports from India

Page 0

ABSTRACT
In India, agriculture is the main occupation. About 58 per cent of the population
depends upon agriculture. It is the backbone of the Indian economy. In
agriculture, rice is one of the most important food crops of India. It feeds more
than 50 per cent of the worlds population. Rice is continues to play vital role in
the national exports. India is one of the important countries in the world in export
of rice. Indian rice exports are reached first place in the world markets. This study
has analysed the trends and variability of rice export, assess the prospects of rice
export and the various problems/constraints of rice export from India to various
countries in the world. The study based on secondary data. The time series data
on export of rice from India for the period 2001-02 to 2013-14.This paper
indicates that there is good market for some Indian rice varieties, especially
basmati rice in the world market. Pakistani basmati, as a sole competitor of India,
does not have the unique aroma and taste as the Indian varieties. During 2012-13
the foreign earning from basmati rice has increased considerably. Despite
considerable area being under rice cultivation in the country, the share of India in
world rice export is very low which can be attributed to the fact that the average
productivity of rice in the country is low and even in some rice producing states,
the productivity is 40 to 50 per cent lower than the national average, in spite of
having good potential capacity. The reasons of low productivity of rice in the
country may be due to use of less quantity of chemical fertilizers, pesticides, more
area under traditional varieties and more dependence on rain. If we want to
increase our exports share in the world rice market, the production growth rate
should be adequate surplus in the country. This requires careful analysis of low
productivity of rice in the country. Besides, more important, the critical analysis is
necessary to enquire into the constraints involved in rice export from India.

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Table of Contents
1. INTRODUCTION............................................................................................. 3
2. OBJECTIVES ................................................................................................... 5
3. METHODOLOGY .............................................................................................. 5
RICE PRODUCTION & EXPORT SCENARIO ......................................................... 6
BASMATI RICE ............................................................................................... 7
NON-BASMATI RICE ...................................................................................... 8
4. STATISTICS .................................................................................................... 9
COUNTRY-WISE EXPORT OF RICE FROM INDIA TO OTHER COUNTRIES IN THE
WORLD .......................................................................................................... 17
BASMATI RICE ............................................................................................. 18
NON-BASMATI RICE .................................................................................... 20
5. PROSPECTS OF RICE EXPORT FROM INDIA................................................... 24
BASMATI RICE ................................................................................................ 24
NON-BASMATI RICE ....................................................................................... 26
DISPUTE OF BRAND BASMATI: ....................................................................... 26
6. APEDA: ....................................................................................................... 28
7. AIREA .......................................................................................................... 29
8. PROBLEMS/ CONSTRAINTS OF RICE EXPORT FROM INDIA........................... 30
9. SUGGESTIONS FOR INCREASE RICE EXPORT ................................................ 32
10.

CONCLUSION ........................................................................................... 34

11. REFERENCES ............................................................................................... 35

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1. INTRODUCTION
In India, agriculture is the main occupation. About 58 per cent of the population
depends upon agriculture. It is the backbone of the Indian economy and is the
oldest and largest occupation of India. It is the centre around which the entire
economy revolves. Agriculture is still one of the priority sectors of the States
economy, particularly rural economy, notwithstanding its diminishing share in the
State domestic product. Several policies and programmes are being planned and
implemented by government from time to time to improve productivity. Besides
improved techniques for the development of agriculture and higher agriculture
production, timely and sufficient rainfall and weather conditions are also crucial
factors. During the study years (2001-02 to 2013-14), the total cropped area has
increased due to sufficient rainfall.
In agriculture rice is one of the most important food crop of India and 2nd in
throughout the world. It feeds more than50 per cent of the worlds population. It
is the staple food of most of the people of South-East Asia. Asia accounts for
about 90 per cent and 91 per cent of worlds rice area and production
respectively. Among the rice growing countries, India having the largest area
under rice in the world and in case of production it is next to China. However,
productivity of India is much lower than that of Egypt, Japan, China, and Vietnam,
USA and Indonesia and also the average productivity of the world. It contributes
42 per cent of total food grains production and 45 per cent of the total cereal
production in the country. One third worlds paddy cultivation area, ie.,
83million hectares in India. It is grown in almost all the states of India but is
mostly concentrated in the river valleys, deltas and low lying coastal areas of
north eastern and southern India. The rice producing states are Assam, west
Bengal, Bihar, Madhya Pradesh, Tamil Nadu, Kerala, Karnataka, Maharashtra,
Gujarat, Uttar Pradesh and Jammu and Kashmir, which together contribute over
95 per cent of the crop. Of these, west Bengal, Orissa, Andhra Pradesh, Tamil
Nadu and Bihar are the major cultivators.

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Rice is continues to play vital role in the national exports. The percentage share of
rice in total national export was 1.01 per cent during 2010-11. The percentage
share of agriculture export in total national export was 10.47, whereas the
percentage share of rice export in total agriculture export was 9.64 per cent
during 2010-11. Thus, rice export contributes nearly 10 per cent of total
agriculture export from the country.
ice is also an important cereal food crops in South East Asia. Thailand, Vietnam,
Myanmar, China and Japan are the important countries besides India growing
rice. Among the exporting countries Thailand, Vietnam, India and Pakistan are the
important countries exporting rice in sizeable quantity. India ranks first in the
export of rice in the world followed by Vietnam and Thailand. However, India is
largest rice exporter in the world during 2012 -13. China and Indonesia are likely
to boost their import of rice, which will facilitate to India to increase its rice
export. Besides, the Govt. of India has also fixed high target of export of rice from
India including broken rice. The Govt. of India has also fixed the export price of
rice quite competitive in the international market. These measures are expected
to contribute in boosting the export of rice from India.
The Govt. has also created four zones in addition to earlier 28 zones to boost the
export of agriculture products from the country, these new zones are

Apple zone in Himachal Pradesh

Mango zones in Andhra Pradesh
Flower zone in Tamil Nadu
Basmati rice export zone in Punjab.

With the creation of these four new zones the exports of agriculture products
from the country have risen to 32 zones, which will cover the export of various
agriculture products in the country. Therefore, the special emphasis is being laid
down to strengthen these zones for increasing agricultural products including
export of basmati rice from India. The basmati export zone has been set up in
Punjab to tap the potential of basmati rice to increase its export in the
international market. In fact Indian basmati rice is well recognized in the
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international markets because of its quality. Keeping in view the export potential
of basmati rice, the Govt. of India has launched aggressive export promotion
policy to further develop the basmati rice by adoption of improved production
technology including improved high yielding new seeds. The scheme for export of
basmati zone will cover Gurdaspur, Amritsar, Kapurthala, Jalandhar, Hoshiarpur
and Nawanshahar districts of Punjab.
The estimated outlay of the scheme is Rs.23.3 crore, in which the centre's share
would be Rs.11.85 crore, the share of State Govt. of Punjab would be Rs.1.85
crore. Balance amount Rs.9.6 crore will be met from private entrepreneurs. The
aim of this programme is to increase export of basmati rice in particular and
overall export of rice in general.
2. OBJECTIVES
1) To study the trends and variability of rice export from India.
2) To assess the prospects of rice export from India
3) To know the various problems/constraints of rice export from India to various
countries in the world.
4) To suggest suitable strategies to increase export of rice from India.
3. METHODOLOGY
The study is based on secondary data. The data is collected from various sources
such as Directorate General of Commercial Intelligence and Statistics, Ministry of
Commerce and industry, Govt. of India, Directorate of Rice Development, Patna,
Ministry of Agriculture, Govt. of India, Department of Agriculture, Govt. of India,
Economic Survey of India, and also Books, Magazine, Journals, Articles, Papers,
Internet, etc. The time series data on export of rice from India for the period
2001-02 to 2013-14 were obtained from various publications of the government
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of India. The secondary data were analysed with suitable statistical techniques
like ratio, average and simple growth rate.
RICE PRODUCTION & EXPORT SCENARIO

India is one of the important countries in the world in export of rice. India's
exports are expected yet to go up further during future financial years. The data
given below shows the rice (total) estimates of India and world in 2015-16. Now
Indian rice exports are reached first place in the world markets. The below table
no. shows that year wise rice (basmati and non-basmati) export from India to
various countries in the world during the years 2001-02 to 2013-14.
Table : Export of Basmati and Non-Basmati Rice during 2001-02 to 2013-14

Source: 1. Agricultural Statistics at a glance, 2013.

2. DGCIS Annual Export, 2013. 3. APEDA
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BASMATI RICE

India is exporting Basmati Rice to various countries in the world. A total quantity
of 667.07 thousand tonnes of basmati rice was exported to different countries
from India during 2001-02. However, the export increased to
3757.38thousandtonnes during 2013-14, registering an increase 463.27 per cent
during the last 13years. The export increased during 2012-13 to 2013-14 and a
total quantity from 3459.92to 3757.38thousand tonnes. The basmati rice
registering increase of 8.60 per cent over the export. The export of basmati rice
from 2004-05 to 2007-08 was almost static with slight increase or decrease over
the years. The export earnings from basmati rice decreased during 2006-07 over
the previous year. Thus, export earnings decreased by 8.22 per cent during 200607 as compared to 2005-06. During 2001-02 export earnings from the export of
basmati rice was Rs. 1842.77crores, which increased significantly to
Rs.29300.12crores during 2013-14, registering an increase of 1490.00per cent
over 2001-02.

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NON-BASMATI RICE

India is also exporting 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 Govt. policy. The export of non-basmati rice from
India during 2001-02 was 1541.49 thousand tonnes, the export rose to 5286.08
thousand tonnes during 2007-08 and it came down to 1006.81thousandtonnes
during 2010-11 in the last ten years. The increase in export of non-basmati rice
during 2013-14 was 7018.58thousandtonnes. The export declined from 2001-02
to 2013-14 and decrease was 355.31 per cent.

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During 2001-02, export earnings from the export of non-basmati rice was Rs
1331.37crores and it increased to Rs.7410.03 crores during 2007-08 registering
the increase of 456.57 per cent over the year 2001-02. The export earnings during
2009-10 and 2010-11 were Rs. 365.3 crores and Rs. 231.29 crores respectively.
The earning of non-basmati rice was the lowest during the year 2010-11 in last
ten years. During 2013-14, export earning of non-basmati rice was Rs.
17493.16crores the registering the increase the earning of 1213.92 per cent over
the year 2001-02.
India has exported total Rice (Basmati and Non-Basmati rice) to various countries
in the world. A total quantity of rice 10775.95thousandtonnes was exported to
different countries from India and export earnings from the export of total rice
(Basmati and Non-Basmati) wereRs.46793.28crores during 2013-14.
Thailand was the worlds leading exporter of basmati and non-basmati rice for
decades. However, due to farmers support price policy locally called pledging
price, Thai importers have fallen during 2012. It is estimated that Thailand due to
this change in policy has lost 50 per cent of its customers During 2012, it is
estimated that India exported 10 million tonnes of rice both basmati and nonbasmati rice which is the largest in the world Vietnam 7.2 million tonnes and
Thailand 6.5 million tonnes.

4. STATISTICS
There are some statistics which is also very important for analyinsing the export
pattern of rice from India to the world because export depends upon the
international price, demand and the production (expected) so all these aspects
are covered in this section of the report it includes the world and indias expected
production for current year as well as the price fluctuation etc.

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1. Rice Estimates for India (Crop Year: October 2015- September 2016)

Source: Department of Food & Public Distribution (DoF&PD), Department of Commerce (DoC), Directorate of
Economics & Statistics (D&ES), Department of Agriculture & Cooperation (DAC).
o *: The figure of export and import is for October-February, 2016.
o **: 2nd Advance estimates released for 2015-16 on 15.02.2016
o ***: FCI stocks ending in February, 2016 are 19.42 million Tons against 15.23 million Tons in corresponding
period last year.
o #: estimates in the beginning of the year. $: estimates at the end of the year.
o $ During 2015-16 Export of non-basmati and basmati rice has been assumed to be 8.0 million tones and 4 million
tons respectively.
o Availability: opening stock in central pool plus production plus Imports; Total Availability for Domestic
Consumption: Availability minus (total export plus ending stock in central pool).
o For preparing estimate for 2015-16, production has been taken as per 2nd advance estimates released for 2015-16
released on 15.02.2016, export, import & ending stock as estimated by Department of Food and Public Distribution.

2. Rice Estimates for World

Global rice production in 2015-16 is forecast, a marginal fall from previous

your, the projected trade is maintained at same level (42 million tons). The
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consumption likely to increase by 1%, the global carry over stock at end of
2015-16 is anticipated to decrease by 16%.

3. Indias Rice Production and Area under Cultivation

Indias rice production has increased at CAGR of 1.46 percent during 200506 and 2015-16
Area under rice cultivation has not increased substantially during 2004-05
and 2014-15.

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4. Global Production

China was the leading rice producer followed by India, Indonesia and
Bangladesh in 2014-15.
5. Major Exporting and Importing Countries of Rice in the world

India was the largest exporter of rice in 2014-15 followed by Thailand and
Vietnam.
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 Saudi Arabia was the leading importer in 2014-15 followed by Iran and
China.
6. Indias Major Export Destinations for Basmati as well as Non-basmati Rice

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 In 2014-15, Saudi Arab was the leading importing country for Basmati rice
from India followed by Iran and Iraq.
Unit cost of basmati rice has decreased in 2014-15 over the previous year
except Kuwait, USA and Oman.

In 2014-15, Bangladesh, Sri Lanka and, Senegal and were amongst

Indias top three importing countries for non-basmati.
In 2014-15, Bangladesh imports substantially from India. It may be due
to decrease in the unit price to Rs. 21 thousand per Tons from Rs.24
thousand per Tons.
7. Indias Trade Flow for Rice during 2009-10 to 2014-15

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 India exported substantial quantity of both Basmati as well as Non-basmati

rice to the world, and import in the same categories were insignificant
during 2009-10 and 2015-16 (up to February, 2016).
8. Domestic and International Price Movement for Long White Rice 25%
Broken

The prices of long white rice (25% Broken) of Thailand and Vietnam were
slightly higher than India in March, 2016.

9. Minimum Support Price (MSP) for Rice (Paddy) during 2011-12 to 2015-16

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 MSP for both quality of Paddy (see table 4) has increased during 2010-11 to
2015-16. This figure has increased by 30 percent in the last 5 years.
10.Rice arrivals in Major Domestic Mandis

The figure for rice arrivals in major mandis shows that Raichur and Burdwan
were leading in March, 2016.
11.Future Prices for Rice

Futures prices for rice are expected to decrease over the previous year as
shown in Table 7
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12.Trade Policy
12.1 Export Policy: Export of rice (except seed quality and other rice in husk) is
free, subject to condition circulated by DGFT. *
12.2 Import Policy: Import of seeds is restricted. Whereas, import of rice for
human consumption is permitted through State Trading Enterprises.

The export of rice of seed quality and other rice in husk (paddy) has been
placed from Free to Restricted category vide DGFTs notification no.
23/2015-20 dated 7th October2015.

COUNTRY-WISE EXPORT OF RICE FROM INDIA TO OTHER COUNTRIES IN THE

WORLD

Rice is exported from India to many countries in the world. In fact, India is facing
stiff competition in the international markets for the export of rice. India is the
worlds largest rice exporting country. Thailand is another large exporter of rice,
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but currently the demand for Thailand rice has steeply declined in the
international market due to which India is likely to the worlds largest exporter of
rice.
India, Thailand and U.S.A. are the only countries making parboiled rice and
exporting it. India Thailand and Vietnam are also exporting 100 per cent broken
rice. Data in respect of parboiled and broken rice exports separately from India
are not available. Hence, export of rice from India has been divided in to two
categories i.e., basmati rice and non-basmati rice and the same are discussed in
this paper.
BASMATI RICE

The leading aromatic fine quality rice in world trade popularly known as Basmati
rice is fetching good export price in the international markets for its three district
quality features viz.-pleasant aroma, superfine grains and extreme grain
elongation. About two third of basmati rice produced in India is exported. Basmati
rice is exported to various countries in the world from India. The exports of
basmati rice during 2011-12 to 2013-14 are discussed below:During 2011-12 U.A.E was the major importer of basmati rice from India followed
by Saudi Arabia, Iran, Kuwait and Iraq and percentage shares of these countries of
total exports from India were 22.93%, 22.69%, 19.35%,6.29%and
4.78%respectively. Thus, more than 76 per cent quantity of basmati rice was
exported to UAE, Saudi Arabia, Iran, Kuwait and Iraq during 2011-12 and
remaining quantity was exported to other countries in the world. A total quantity
of 31, 78,174.42mts of basmati rice was exported from India during 2011-12.
During 2012 -2013, these five countries remained as major basmati rice importers
from India and their percentage shares of total quantity of basmati rice exported
from India was 6.78per cent, 19.69 per cent, 31.28 per cent, 4.72 per cent and
5.90 per cent respectively. The export to Saudi Arabia, Kuwait and U.A.E declined
during 2012-2013 as compared to previous year. In fact, the export to Iran and
Iraq increased as compared to 2011-12. The percentage share of five countries
comprising of Saudi Arabia, Kuwait, U.A.E, Iran and Iraq were 68.37 per cent of
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total quantity of basmati rice exported from India during 2012-13 as against 76.04
per cent during 2011-12. The export of basmati rice almost remained the same as
it was during 2011-12 with slight fluctuation. A total quantity of 34, 59, 898.92mts
of basmati rice was exported from India during 2012-13, which was 8.86 per cent
higher than the export of previous year.
The export of basmati rice to Iran increased to 14, 40,654.37mts during 2013-14
as against 10, 82,216.47mts in the previous year. The percentage share of Iran of
total quantity of basmati rice exported from India during 2013-14 was 38.34 per
cent as against 31.27 per cent in the previous year. Infact, total quantity exported
to Iran increased during 2013-14, but the percentage share of Iran of total
quantity exported from India increased due to decrease in the percentage share
of other importing countries. Other major importing countries of basmati rice
from India were U.A.E, Saudi Arabia, Kuwait and Iraq during 2013-14.
The export to Saudi Arabia during 2013-14 was 8,26,289.81mts, which was 21.29
per cent higher than previous year and the percentage share of Saudi Arabia of
total quantity of basmati rice exported from India during 2013-14 was 21.99 per
cent as against 19.69 per cent in the previous year. Similarly the export to Iraq
and Kuwait also increased from 2, 04,261.89mts and 1, 63,317.07mts during
2012-13 to 2, 19,634.00mts and 1, 75,444.79mts during 2013-14 respectively.
However, the export to U.A.E. declined to 1, 49,041.96mts during 2013-14 as
against 2, 34,679.47mts during previous year. A total quantity of 37,
57,271.44mts of basmati rice was exported from India during 2013-14, which was
8.59 per cent higher than the export of previous year. Country-wise export of
basmati rice from India during 2011-12 to 2013-14 is given in Table no 2.
Table 2: Country-wise Export of Basmati Rice during 2009-10 to 2016-17

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

Rs. Crore

Rs. Crore

Rs. Crore

Rs. Crore

Rs. Crore

Rs. Crore

Rs. Crore

2016-17
(April August)
Rs.
Crore

Iran

2053.09

2033.96

2843.21

6463.5

10975.71

6758.97

3723.93

2349.31

Saudi Arab

3295.47

3132.94

3380.88

3659.08

6717.06

7260.78

5493.85

1784.5

U Arab Emts

3095.12

2839.76

3432.79

1311.2

1185.96

1929.97

3110.7

1232.84

CountryName

Rice Exports from India

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Iraq

35.9

165.31

672.87

1076.67

1599.72

1587.39

2227.08

866.97

1030.14

1091.64

1362.92

1059.68

1513.06

1533.23

1376.7

386.44

195.89

351.77

629.46

849.98

785.75

900.13

932.84

296.81

153.5

250.32

503.88

561.69

870.31

805.4

861.68

293.25

295.48

296.78

402.91

878.19

1107.79

1201

731.28

250.42

Oman

31.65

36.36

94.33

244.36

355.46

422.29

610.22

227.62

Qatar

32.97

45.72

94.47

403.77

262.21

1138.38

163.26

164.83

Turkey

9.95

37.91

94.1

16.45

85.55

148.51

200.08

153.44

Netherland

23.64

106.89

172.49

288.89

299.02

364.76

249.88

105.68

Canada

61.37

100.54

174.02

170.81

231.55

229.66

251.04

95.78

Belgium

12.94

44.9

116.12

264.73

241.77

222.14

219.11

94.81

Jordan

49.9

113.79

242.46

441.37

624.09

457.67

191.42

94.38

Baharain Is

18.09

32.58

76.33

119.31

179.19

186.78

168.5

80.52

Israel

10.43

24.85

55.41

75.76

124.41

152.01

166.99

77.58

40

73.02

122.93

160.04

217.96

234.25

192.06

77.31

Australia

32.01

55.31

101.21

145.39

206.58

254.22

228.49

75.79

Italy

14.76

60.72

107.96

194.84

284.92

217.97

181.53

60.92

1.65

41.45

71.43

90.35

127.03

110.49

106.38

51.48

Germany

18.65

27.12

96.28

86.97

83.36

118.8

98.36

42.59

Malaysia

0.4

5.01

12.68

39.52

53.05

94.69

95.64

41.05

South Africa

12.9

19.27

45.48

63.49

94.79

85.65

79.35

32.18

Lebanon

1.94

4.44

13.57

23.54

48.92

57.27

52.31

29.05

361.73

362.27

529.42

719.8

1016.6

1126.29

1001.6

402.69

Kuwait
UK
USA
Yemen Republc

Mauritius

France

others

Total 10,889.57 11,354.63 15,449.61 19,409.38 29,291.82 27,598.70 22,714.28 9,368.24

NON-BASMATI RICE

The export of non-basmati rice from India was on its peak during 2007-08 and a
total quantity of 6469.44thousandtonnes was exported to different countries in
the world. Again the export crossed to 2488.3 thousand tonnes during 2008-09,
but during subsequent years, the export of non-basmati rice again came down
significantly due to various reasons. The export of non-basmati rice during 201112 to 2013-14 are discussed below During 2011-12 Benin, Bangladesh, Senegal, South Africa and Liberia were the
major importers of non-basmati rice from India. In fact, more than 8 per cent of
total export of non-basmati rice from India was exported to Senegal alone during
2011-12. A total quantity of 3, 33,929.00mts of non-basmati rice was exported to
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Senegal during 2011-12, which was 8.35 per cent of total quantity exported from
India during the same year. Next major country was Cote D Ivoirefor import of
non-basmati rice from India. A total quantity of 2, 13,720.00mts of non-basmati
rice was exported to Benin during 2011-12, which was 5.35 per cent of total
quantity exported from India during the same year. The export to United Arab
Emirates was 2, 07,470.76mts of non-basmati rice, which was 5.19 per cent of
total quantity of non-basmati rice exported from India during 2011-12.
Similarly, the export of non-basmati rice to South Africa was 1, 92,120.97 mts.
which was 4.81 per cent of total quantity of non-basmati rice exported from India
during 2011-12. The export to Bangladesh and Nepal were 1, 44,703.47mts and 1,
40,864.16mts of non-basmati rice during 2011-12, which were 3.62 per cent and
3.52 per cent of total quantity exported from India during the same year
respectively. The export to other countries was considerably less as compared to
quantity exported to the countries discussed above. A total quantity of 39,
97,719.58mts of non-basmati rice was exported from India to various countries in
the world during 2011-12.
Senegal remained major importer of non-basmati rice from India during 2012-13
also but total export of non-basmati rice to Senegal increased to 155.96 per cent
during 2012-13 as compared to previous year. A total quantity of 8, 54,741.01mts.
of non-basmati rice was exported to Senegal during 2012-13 as against 3,
33,929.00 mts. exported during 2011-12. The percentage share of Senegal of total
quantity of non-basmati rice exported from India during 2012-13 was 12.78
percent as against 8.35 percent in the previous year.
Next to Senegal, Cote D Ivoire was the major country, which imported nonbasmati rice from India during 2012-13. A quantity of 5, 96,843.86mts. of nonbasmati rice was exported from India to Cote D Ivoire during 2012-13 as against 2,
82,326.85mts during previous year, which was 111.40 per cent higher. The
percentage share of Cote D Ivoire of total quantity of non-basmati rice exported
from India during 2012-13 was 8.92 per cent as against 7.06 percent during the
previous year.

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The exports to Benin, South Africa, Nepal, Guinea and UAE were 5,76,544.80mts,
4,30,702.04mts, 3,96,586.72mts2,81,845.00mts and2,62,071.85mts of nonbasmati rice during 2012-13, which were 8.62 per cent, 6.44 per cent, 5.93 per
cent, 4.21 per cent and 3.92 per cent of total quantity exported from India during
the same year, considerably less as compared to the countries discuss above. A
total quantity of 66,87,990.85mts of non-basmati rice was exported from India to
various countries in the world during 2012-13, which was 67.30 per cent more as
compared to 39,97,719.58mts exported during the previous year.
The major quantity of non-basmati rice was exported to Benin during 2013-14 as
it was during the previous year. A total quantity of non-basmati rice exported to
Benin during 2013-14 was 102.34 per cent more as compared to previous year
but the percentage share of Benin of total quantity of non-basmati rice exported
from India during 2013-14 was 16.35 per cent, which was more as against 8.62
per cent during the previous year. A total quantity of 71, 33,183.37mts of nonbasmati rice was exported from India to Benin during 2013-14 as against 66,
87,990.85mts exported during the previous year.
Other major countries that imported non-basmati rice from India during 2013-14
were Senegal, Bangladesh, Nepal, South Africa, Liberia and Cote D Ivoire. Total
quantity exported to these countries during 2013-14 where 6, 51,983.32mts, 6,
51,640.60mts, 4, 04,127.29mts, 3, 94,304.61mts, 3, 23,390.38mts and 2,
61,503.70mts respectively and their percentage share in total quantity of nonbasmati rice exported from India during the same year were 9.14 per cent, 9.13
per cent 5.67 per cent, 5.53 per cent, 4.53 per cent, and 3.66 per cent
respectively. A total quantity of 71,33,183.37 mts. of non-basmati rice was
exported from India to various countries in the world during 2013-14, which was
6.66 per cent more as compared to 66,87,990.85mts. exported during previous
year. Country wise exports of non-basmati rice during 2011-12 to 2013-14 are
given in Table no 3.

Rice Exports from India

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Table 3: Country-wise Export of Non -Basmati Rice during 2009-10 to 2016-17

2016-17
(April August)

200910
Rs.
Crore

2010-11
Rs.
Crore

2011-12
Rs.
Crore

2012-13

2013-14

2014-15

Rs. Crore

Rs. Crore

Rs. Crore

Benin

6.22

3.13

452.75

1302.45

2945.56

1506.86

1411.12

1083.26

Guinea

1.36

28.81

576.57

535.84

935.83

866.95

639.67

Senegal

589.34

1463.43

1185.92

1380.52

1593.37

618.93

Nepal

30.99

42.13

210.22

578.61

728.87

1315.51

1137.85

456.53

U Arab Emts

42.01

5.11

499.03

760.15

708.91

767.03

747.78

395.64

Cote D' Ivoire

8.56

3.31

556.36

1175.89

598.89

601.09

1000.3

373.99

Iraq

4.79

150.83

44.66

74.97

154.31

177.41

351.5

165.95

137.22

295.76

494.44

605.27

340.23

2.33

40.67

407.97

926.5

970.64

803.27

570.64

324.8

Turkey

4.81

27.83

476.7

616.5

361.03

294.96

Liberia

59.37

334.28

767.77

618.09

480.63

257.8

0.35

0.98

50.58

115.57

171.28

272.17

308.47

156.25

Saudi Arab

51.11

5.18

279.86

434.95

524.49

649.39

506.68

137.63

Egypt A Rp

0.2

448.74

71.34

33.94

29.76

72.35

125.41

1.69

112.14

104.83

153.67

101.19

110.89

113.9

0.23

1.02

49.11

92.92

145.16

228.9

248.9

112.11

8.2

3.8

176.91

356.03

388.3

525.83

358.26

110.1

Russia

0.12

21.74

141.23

135.01

196.72

159.79

89.26

Madagascar

2.94

64.7

205.61

560.18

155.06

129.58

83.76

USA

18.37

2.24

72.22

85.35

135.45

143.19

217.71

82.2

Niger

4.57

37.68

181.28

92.22

140.21

79.83

Ethiopia

0.01

16.18

42.42

137.17

136.05

158.8

63.68

Algeria

21.78

129.99

87.77

116.22

107.45

62.59

0.13

10.84

271.98

83.36

1551.33

2682.86

617.43

59.43

13.84

49.75

77.01

82.01

72.93

59.23

0.02

10.88

546.5

313.02

240.16

174.19

68.5

57.83

187.38

100.28

3382.81

4857.24

3983.21

5556.75

2855.57

864.15

231.27 8,659.10 14,448.88

17,795.24

20,335.96

15,085.87

7,394.67

CountryName

Somalia
South Africa

Djibouti

Ghana
Qatar
Singapore

Bangladesh Pr
Sudan
Indonesia
others

Total
Source: DGCIS

365.31

Rice Exports from India

2015-16

Rs. Crore Rs. Crore

Page 23

5. PROSPECTS OF RICE EXPORT FROM INDIA

India is facing stiff competition in the International markets from Thailand,
Vietnam, U.S.A. and Pakistan. There was a considerable growth in the export of
rice from India during the recent past, particularly in the case of non-basmati rice.
There are several factors responsible for this growth. In fact exports depend not
only on our ability to sell, but also on the willingness of importers to buy.
Sometimes major markets/importers used to cut down their import due to their
internal economic problems or good crop harvest and trade also cut down
inventories and people reduce spending. All these measures reduce imports
during that particular year. The prospects of export of basmati and non-basmati
rice from India are discussed herewith:
BASMATI RICE

Awareness about basmati rice is spreading among different strata of the society in
the country and abroad. Basmati rice is possessing unique grain, cooking, eating
and digestive qualities. Hence, majority of people in the country and abroad have
developed liking for basmati rice. Because of its superfine quality, basmati rice is
most preferred and also meant for high premium value in the national and
international markets. Thus, basmati rice is also stated to be 'Pearl' of rice.
There are other sources of aromatic short grain varieties with similar starch
content characteristics, grown different states of the country. Katarni rice is
grown in Bihar, Randhunipagal and Bhadshahbhog are grown in West Bengal,
each one of these varieties is fetching higher price in the local markets. These
varieties are having localized preference and their demand preference could not
spread widely elsewhere. Even some of these possess more aroma than the
typical basmati varieties. In fact, the harmonious combination of various factors
deciding the appearance, taste, keeping quality texture of cooked rice etc and
makes the particular varieties unique/popular in the domestic and international
markets.
As mentioned above basmati rice is the most sought after rice in the domestic
and international markets and it also fetches high premium. Commercially Taraori
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Basmati, Basmati-370 and Basmati Type-3 are very popular. All these three
varieties are similar in starch characteristics but based on grain dimensions
Taraori Basmati is preferred much over Basamati-370. Similarly Basamati-370 is
preferred more over Basmati Type-3. Pusa Basmati-1 has been well accepted by
the trade and there are good prospects for export. In fact, Pusa Basmati-1 is at
present most profitable variety in rice, in spite of being highly susceptible to
major insects, pests and diseases. Under proper crop management condition
farmers can get 4-6 tonnes paddy yield per hectare. This variety is much favored
by the farmers, traders and consumers. During cooking it has got linear
expansion. It is also easily digestible. Hence, this variety is much preferred by the
consumers in India and abroad.
With the every coming year, domestic as well as international demand for
basmati rice is increasing. If desired aroma in basmati rice along with other quality
characteristics is maintained, these measures may help to boost the export of
basmati rice from India.

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NON-BASMATI RICE

Non-basmati rice exports have also 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. The export of non-basmati rice was on its peak
during 1995-96 it came down during 1998-99 due to many reasons. Sometime,
export is also affected if good harvest is there in the importing countries, they
reduce their import accordingly. If rice exporters made their sincere efforts with
Govt. supporting export policy, non-basmati rice export is expected to increase in
future.
DISPUTE OF BRAND BASMATI:

BETWEEN INDIA AND U.S.:In late 1997, an American company RiceTec Inc, was
granted a patent by the US patent office to call the aromatic rice grown outside
India 'Basmati'. RiceTec Inc, had been trying to enter the international Basmati
market with brands like 'Kasmati' and 'Texmati' described as Basmati-type rice
with minimal success. However, with the Basmati patent rights, RiceTec will now
be able to not only call its aromatic rice Basmati within the US, but also label it
Basmati for its exports. This has grave repercussions for India and Pakistan
because not only will India lose out on the 45,000 tonne US import market, which
forms 10 percent of the total Basmati exports, but also its position in crucial
markets like the European Union, the United Kingdom, Middle East and West
Asia. In addition, the patent on Basmati is believed to be a violation of the
fundamental fact that the long grain aromatic rice grown only in Punjab, Haryana,
and Uttar Pradesh is called Basmati. According to sources from the Indian
Newspaper, Economic Times, "Patenting Basmati in the US is like snatching away
our history and culture."
The president of the Associated Chambers of Commerce (ASSOCHAM) said
Basmati rice is traditionally grown in India and Pakistan and granting patent to it
violated the Geographical Indications act under the TRIPS. The TRIPS clause
defines Geographical indication as "a good originating in the territory of a
member, or a region or locality in that territory, where a given quality, reputation,
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or other characteristic of the good is essentially attributable to its geographical

origin." As a result, it is safe to say Basmati rice is as exclusively associated with
India and Pakistan as Champagne is to France and Scotch Whiskey is to Scotland.
Indians argue that just as the US cannot label their wine as champagne, they
should not be able to label their rice Basmati. If the patent is not revoked in the
US because unlike the Turmeric case, rice growers lack documentation of their
traditional skills and knowledge, then India as have been urged by many activist in
the field should take the case to the WTO for an authoritative ruling based on the
violation of TRIPS.
WITHIN INDIA (GI dispute): The Agricultural and Processed Food Products Export
Development Authority (Apeda) has been working to get basmati GI certification
for states in the Indo-Gangetic Plains in the Himalayan foothills, which include
Punjab, Haryana, western Uttar Pradesh, parts of Jammu and Kashmir and
Uttarakhand. But the heart of the dispute is MP staking claim for inclusion of 13
of its districts from Morena, Bhind, Sheopur, Gwalior, Datia, Shivpuri and Guna
in the north to Vidisha, Raisen, Sehore, Hoshangabad, Narsinghpur and Jabalpur
in the central-south in the Geographical Indication (GI) area officially
demarcated for basmati cultivation which is srongly opposed by north indian
states and the case is under trial in Madras high court.

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6. APEDA:
The Agricultural and Processed Food Products Export Development Authority
(APEDA) was established by the Government of India under the Agricultural and
Processed Food Products Export Development Authority Act passed by the
Parliament in December, 1985. The Act (2 of 1986) came into effect from 13th
February, 1986 by a notification issued in the Gazette of India: Extraordinary:
Part-II [Sec. 3(ii): 13.2.1986). The Authority replaced the Processed Food Export
Promotion Council (PFEPC).
ASSIGNED FUNCTIONS
In accordance with the Agricultural and Processed Food Products Export
Development Authority Act, 1985, (2 of 1986) the following functions have been
assigned to the Authority.
Development of industries relating to the scheduled products for export by
way of providing financial assistance or otherwise for undertaking surveys
and feasibility studies, participation in enquiry capital through joint
ventures and other reliefs and subsidy schemes;
Registration of persons as exporters of the scheduled products on payment
of such fees as may be prescribed;
Fixing of standards and specifications for the scheduled products for the
purpose of exports;
Carrying out inspection of meat and meat products in slaughter houses,
processing plants, storage premises, conveyances or other places where
such products are kept or handled for the purpose of ensuring the quality
of such products;
Improving of packaging of the Scheduled products;
Improving of marketing of the Scheduled products outside India;
Promotion of export oriented production and development of the
Scheduled products;
Collection of statistics from the owners of factories or establishments
engaged in the production, processing, packaging, marketing or export of
the scheduled products or from such other persons as may be prescribed
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on any matter relating to the scheduled products and publication of the

statistics so collected or of any portions thereof or extracts therefrom;
Training in various aspects of the industries connected with the scheduled
products; Such other matters as may be prescribed.
ROLE IN RICE EXPORTS:
A worldwide watch agency has been appointed since 1996 to monitor the
trade mark registers worldwide for any third party attempt for registration
of the name basmati.

APEDA had applied to GI Registry in Chennai in November 2008 for

registration of Basmati Rice as a GI.

APEDA has established Basmati Export Development Foundation (BEDF) for

quality testing and DNA profiling of Basmati Rice.
A Demonstration and Training Farm has been set up under BEDF over an
area of about 10 acres for training the farmers in Good Practices for
cultivation of Basmati Rice and Seed Production.
7. AIREA
The All India Rice Exporters Association (AIREA) is the Apex body of Indian Rice
Exporters worldwide. Established in 1989, AIREA is recognized by the Government
of India and works closely with the Ministry of Commerce, Ministry of Agriculture
and APEDA.AIREA's prime mission is to influence India rice export policy and as
such interacts with the Indian central and state government, foreign governments
and academic research institutions. AIREA is consulted by the Indian Government
on all policy decisions in the field of agriculture, rice cultivation and export.
AIREA is an association of rice exporters with the prime mission of influencing
export policy of rice. In addition, it projects and promotes rice in the international
market as well as interacts with all Government agencies, Institutions, directly or
indirectly related to the Rice Industry.
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All India Rice Exporters Association (AIREA) is the only recognized apex body of
Indian rice exporters worldwide. The organization is consulted not only by the
Indian Government but foreign buyers and foreign trade associations as well.
Member of AIREA include multinationals and public sector undertakings in
addition to major rice exporters. It is an indirect channel to promote and enhance
Indian rice business across the world market, thereby facilitating the growth of
Indian rice exporting industry.
AIREA makes efforts in promoting rice in the international market, through
various meetings, summits, conferences and events such as the food fairs across
the world. AIREA also organizes frequent seminars on business opportunities in
rice exports and other similar topics. The association has been successfully making
a name for Indian rice worldwide.
8. PROBLEMS/ CONSTRAINTS OF RICE EXPORT 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 are discussed below: 1) As per the state Govt. policy, various taxes are imposed on rice exports, such as
the states are imposing Purchase Tax (on indirect export), Market Fees, Rural
Development Fund, Administrative Charges etc. These taxes are rendering the
pricing of rice internationally in competitive. Thus, Indian rice becomes costlier in
the international market as compared to other competing countries in the world
and Indian rice exports get setback many times. In fact, in Pakistan rice meant for
exports specially the branded ones, duties are extremely low or duty free.
2) There is lack of proper infrastructural facilities. Many times exporters, when
they carry their stock to sea port and if the stock is not loaded due to some
reason or the other, exporters do not find godown or proper place to store their
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stocks properly and safely at sea port, exporters have to face lot of difficulties,
besides, it adds additional expenditure to the exporters.
3) Due to increase in the cost of inputs used for paddy cultivation the production
cost goes up and the Minimum Support Price (MSP) for paddy is enhanced every
year by the govt. of India to safeguard the interest of the growers. When paddy is
converted to rice, it becomes costlier and thus makes it internationally
uncompetitive.
4) 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.
5) The major rice producing nations have decreased the price to capture the
international markets but Indian rice prices are inelastic due to relatively high cost
of production and become uncompetitive in the international markets. Much of
basmati rice export prospects have been lost in the recent part to other
competing countries like Pakistan etc because of high prices.
6) Rice mills have not been fully modernized to ensure high milling recovery and
reduce the percentage of broken rice. The conventional rice mills are having
Rubber Roll Sheller in which percentage of broken rice is more than the modern
rice mills that are having under Runner Sheller. Hence, head rice obtained from
milling of conventional mills becomes costly due to recovery of higher percentage
of broken rice. Therefore, conventional mills are required to be modernized to get
recovery of higher percentage of head rice suitable for export.
7) Lack of proper arrangements for production of sufficient quantity of quality
seeds needed for cultivation of rice for export purposes.
8) 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.
In fact, trade segment believes that Indian rice can face the global competition if
subsidy is provided.
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9) In these days basmati rice is facing aroma problem, because intensity of aroma
in traditional basmati varieties is not so high as it used to be. In fact, basmati
varieties are highly prone to lodging and lodging affects the natural grain
development. In such situation both aroma and linear kernel elongation are
affected.
10) 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.
11) In absence of genetically pure seed of basmati varieties, in majority of basmati
rice fields, 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. In fact, at the
time of rice processing the grain size can be taken care of, but it is a waste.
However, using good quality seed the loss can be converted into profit.

9. SUGGESTIONS FOR INCREASE RICE EXPORT

Rice export constitutes a considerable share in the national exports. India is major
exporters during 2012-13 and its influence on the global rice trade will be
significant. Keeping in view the importance of rice in the national export items,
concerted efforts are required to be made to further promote the export of rice.
There is a good scope for India to take advantage of the new trade opportunities
for promoting the export of rice. This can be achieved if production is made as per
the requirements of international markets by increased investment in Research
and Development coupled with export friendly trade policies.
The following are few of the measures suggested to increase the export of rice in
future:

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1) Breeding programme may be initiated to develop high yielding export quality

rice (Basmati, Non-Basmati, Long Grain Rice, etc.) to enable the exporters to
sustain their export in future.
2) Survey may be conducted to identify export quality belts/zones for production
of rice to meet the requirement of exports.
3) Extension activities may be strengthened to educate the cultivators for
production of quality rice to match the standards of international markets.
4) Low cost production technology may be developed to bring down the cost of
production to enable the exporters to compete with competing countries in the
international markets.
5) Proper arrangements may be made for procurement and processing of rice
export purpose as per the requirement of international markets.
6) Proper arrangements may be made for production of pure quality seeds and
making them available to the farmers at subsidized rates.
7) In case of basmati varieties, crop should not be allowed to lodge and there
should be proper water management in the field. If these are not attended
properly, such situation may affect both aroma and linear kernel elongation.
8) Post-harvest operation is also very important. After harvesting, if produce is
allowed to remain at higher moisture level for a longer period, it will impair the
intensity of aroma.

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10.

CONCLUSION

The declining share of Indias agricultural export in world export trade may be
attributed to the stagnant output, low yield rates, non-competitiveness in the
world market and lack of knowledge on harvesting and post harvesting
technology. India still depends on her traditional export crops. The analysis
indicates that there is good market for some Indian rice varieties, especially
basmati rice in the world market. Pakistani basmati, as a sole competitor of India,
does not have the unique aroma and taste as the Indian varieties. During 2012-13
the foreign earning from basmati rice has increased considerably. Despite
considerable area being under rice cultivation in the country, the share of India in
world rice export is very low which can be attributed to the fact that the average
productivity of rice in the country is low and even in some rice producing states,
the productivity is forty to fifty per cent lower than the national average, in spite
of having good potential capacity. The reasons of low productivity of rice in the
country may be due to use of less quantity of chemical fertilizers, more area
under traditional varieties and more dependence on rain. If we desire to increase
our exports share in the world rice market, the production growth rate should be
adequate surplus in the country. This requires careful analysis of low productivity
of rice in the country. Besides, more important, the critical analysis is needed to
enquire into the constraints involved in rice export from India.

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11.

REFERENCES

*1+ Misra and Puri (2012) Indian Economy, Himalaya Publishing House, Mumbai.
*2+ Datta and Sundaram (2011). Indian Economy, S. Chand and Company
Limited, New Delhi.
[3] Government of India (2013).Agricultural Statistics at a glance.
[4] Director General of Commercial Intelligence and Statistics (DGCIS) (2013).
Annual Export, Ministry of Commerce, Kolkata.
[5] Government of India (2013).Economic Survey of India.
[6] Dr. Gurusharan Singh Kainth (1996), Export Potential of Indian Agriculture,
Regency Publications, New Delhi.
[7] www. Directorate of Rice Development, Patna, Bihar.
[8] www. APEDA Agri Exchange.
[9] www.Food and Agricultural Organisation (FAO).
[10] www. All India Rice Exporters' Association.
[11] www. Ministry of Agriculture, Government of India.
[12] www. India stat.com

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