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Introduction Rice is one of the important cereal food crop of India.

Rice contributes about 43% of totalfood grain production and 46% of total cereal production in the country. It continues to play vitalrole in the national exports. The percentage share of rice in total national export was 4.5% during1998-99. The percentage share of agriculture export in total national export was 18.25, whereasthe percentage share of rice export in total agriculture export was 24.62 during 1998-99. Thus,rice export contributes nearly 25% of total agriculture export from the country. Rice is also an important cereal food crops in South East Asia. Thailand, Vietnam,Mynammar, China and Japan are the important countries besides India growing rice. Among theexporting countries Thailand, Vietnam, India and Pakistan are the important countries exportingrice in sizeable quantity. Thailand ranks first in the export of rice in the world followed byVietnam and India. However, India is likely set to be second largest rice exporter in the worldduring the current financial year. 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 fixedhigh target of export of rice from India including broken rice. The Govt. of India has also fixedthe export price of rice quite competitive in the international market. These measures areexpected 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 export of agriculture products from thecountry have risen to 32 zones, which will cover the export of various agriculture products in thecountry. 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 exportzone has been set up in Punjab to tap the potential of basmati rice to increase its export in theinternational market. In fact Indian basmati rice is well recognized in the international markets because of its quality. Keeping in view the export potential of basmati rice, the Govt. of India haslaunched 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 beRs.11.85 crore, the share of State Govt. of Punjab would be Rs.1.85 crore. Balance amountRs.9.6 crore will be met from private entrepreneurs. The aim of this programme is to increaseexport of basmati rice in particular and overall export of rice in general.

Basmati rice backgroung Rice export from India constitutes the major share of Basmati rice. Nearly two-third of Basmati rice produced in India is exported. Basmati rice is the leading aromatic fine quality riceof the world trade and it fetches good export price in the international markets. Infact, Basmatirice is a gift from "Mother Nature" to the Indian sub-continent and grows in the Indo-Gangatic plains only.The meaning of Basmati can be derived from "bas" which means aroma and "mati"meaning sense. Thus the word Basmati implies 'ingrained aroma'. So it is the aroma that gives basmati its novel characteristics unmatched by any other rice grain anywhere else in the world.Many scented varieties of rice have been cultivated in the Indian sub- continent from timeimmemorial but basmati distinguishes itself from all other aromatic rice due to its uniquearomatic characteristics coupled with silky texture of its long grain. The great Punjabi poet VarisShah has described basmati-scented rice in his poem of Heer and Ranjha in 1766. The other poetssuch as Mushkin and Sukhdas have also traced back to Abul-4 Fazl Allami's Ain-e-Akbari aboutscented grain.Thus, it is quite evident that basmati rice perhaps from its very accurence has been recipeentertainer of the Royal Society. Now, it is still considered "dream of the masses" and "charm of the classes".The supremacy of basmati rice can not superceded by any other scented variety because of its unique characteristics viz superfine kernels, exquisite aroma, sweet taste, silky texture,delicate curvature and linear kernel elongation with least breadth and swelling on cooking.Because of its quality characteristics, basmati rice is fetching higher price in the internationalmarket. Hence, basmati rice can be equated with "champagne" among wines and 'scotch' amongwhiskies. During pre-partition times, basmati rice was grown in India only but after partition, its heritage is

shared between India and Pakistan. Presently, major growing states of basmati rice in India areHaryana, Punjab, Western U. P. and Uttranchal.Basmati rice being novel product is characterized by its unique grain size, aroma andcooking qualities. Being high value product, it has got good export demand. Hence, the exporthas been very high and exports have been steadily growing. The export of basmati rice during1991-92 was 2.66 lakh mts, a quantum jump of 96.6% at 5.23 lakh mts in 1996-97. During theyear 2000-01, basmati rice export touched an all time high record figure of 8.52 lakh mts(provisional) showing on increase of 62.9% over 1996-97. During 2001-02 basmati rice exportwas 6.66 lakh mts. (Provisional) showing downwards trend compared to previous year's export of 8.52 lakh mts (provisional), but the export of non-basmati rice registered an increase of 124.6%during 2001-02 over 2000-01. Global Scenario (A) Basmati Rice Gulf region remains the major markets for Indian basmati rice and inside Gulf, SaudiArabia accounts for the major chunk of basmati imports from India. Pakistan is the solecompetitor for India in the international market for basmati rice. During 1998-99, 1999-2000 and2000-01, total quantities of basmati rice exports from India were 5.98 lakh mts., 6.38 lakh mts.and 8.52 lakh mts. in which the percentage share of Asia was 85.69%, 82.12% and 73.38%respectively. The percentage share of Asia has decreased for basmati rice, during 1998-99, 1999-2000 and 2000-01 but the export to Europe has increased in linear order from 11.41% in 1998-99to 14.37% in 1999-2000 and 20.46% during 2000-01 respectively.The export to North America has also

increased in the same order from 1.39% during1998-99 to 5.28% during 2000-01. However the export to other countries remains constant withslight fluctuation from year to year. India's major markets for basmati rice exports have beenSaudi Arabia, Australia, Austria, Belgium, Bahrain, France, Germany, U.K., Denmark, U.S.A.,Canada, Belgium , Kuwait, Italy, Oman, Yemen, Netherlands, Jordan, Indonesia etc. Infact, SaudiArabia traditionally has been the largest market for Indian basmati rice.The export of Basmati rice from India's during 1998-99 to 2000-01 to different continentsis given in Table 1. (B) Non-Basmati Rice Major destinations for India's non-basmati rice exports are Bangladesh, Australia, Bahrain,Ethiopia, Djibouti, France, Germany, U.K., Hong Kong, Korea, Sri-Lanka, Maldives, Mauritius,Malaysia, Nigeria, Ivory coast, Indonesia, Nepal, Oman, Qatar, Russia, South Africa, SaudiArabia, Somalia, Singapore, U.A.E. Y.A.R., etc. Competing countries in the international marketsfor India for the exports of non-basmati rice are Thailand, Vietnam, Burma, China, U.S.A. andPakistan. Major quantity of non-basmati rice is exported to Asia continent. During 1996-97, 1997-98, 1998-99 and 1999-2000 a total quantity of 9.59 lakh mts., 9.28lakh mts., 28.75 lakh mts. and 7.08 lakh mts. were exported to Asia continent which were48.20%, 51.66%, 65.86% and 56.28% of total export of non-basmati rice from India to Asia,respectively. There was a fluctuation in the export of non-basmati rice from India to Asia during1996-97 to 1999-2000.After Asia, non-basmati rice is exported from India to Africa continent. During 199697,1997-98, 1998-99 and 1999-2000 a total quantity of non-basmati rice exports from India toAfrica were 5.39 lakh mts, 5.59 lakh mts, 10.67 lakh mts and 3.24 lakh mts, in which the percentage share of Africa continent was 27.09%, 31.14%, 24.44% and 25.73% respectively of total export of non-basmati rice from India. Next to Africa continent, Europe continent has been importing non-basmati rice from Indiaduring 1996-97, 1997-98, 1998-99 and 1999-2000. The exports of non-basmati rice from India toother continents are very meagre. The exports to Europe continent during the last few years werean average more than 1.5 lakh mts per year except 1996-97. During 1996-97 total export of non- basmati rice to Europe was 3.38 lakh mts.Export of non-basmati rice from India during 1996-97 to 1999-2000 to different continentsis given in Table 2. (C) Parboiled Rice Indian is exporting parboiled rice to Middle East and African countries, as these countries prefer parboiled rice. RICE EXPORT EARNINGS Basmati Rice As already mentioned, India is exporting Basmati Rice to various countries in the world. Atotal quantity of 2.66 lakh mts basmati rice was exported to different countries from India during1991-92. However, the export increased to 8.52 lakh mts during 2000-01, registering an increaseof 220% during the last nine years period. The export declined during 2001-02 and a totalquantity of 6.66 lakh mts basmati rice was exported registering a decrease of 21.8 per cent

over the export of 2000-01. The export of basmati rice from 1996-97 to 1999-2000 was almost staticwith slight increase over the years.
During 1991-92 export earning from the export of basmati rice was 499.18 crores, whichincreased to 2165.96 crores during 2000-01 registering an increase of 333.90 per cent over 1991- 92 export earnings. The export earnings from basmati rice decreased during 2001-02, over previous year. Thus, export earnings decreased by 15.09 per cent during 2001-02 as compared to2000-01.

Non-Basmati Rice India is also exporting substantial quantity of non-basmati rice to various countries in theworld. However, the export of non-basmati rice has been fluctuating year to year due to weather conditions affecting the production of non-basmati rice in the importing countries. The export of non-basmati rice from India during 1991-92 was 4.12 lakh mts, the export rose to 45.41 lakh mtsduring 1995-96 and it come down to 15.32 lakh mts. during 2001-02. The increase in export of non-basmati rice from 1991-92 to 1995-96 was quite considerable and registering in 10 foldsincrease. The export again declined during subsequent years. Decrease in export during 2001-02was 66.26 per cent. Over all increase in export of non-basmati rice during the last 10 years periodi.e. from 1991-92 to 2001-02 was about 3 folds. During 1991-92, export earning from the export of non-basmati rice was Rs. 256.41 crores,and it increased to Rs. 3,717.41 crores during 1995-96, which was more than 13 folds increaseduring the past four years period i.e., from 1991-92 to 1995-96. During 2001-02, the exportearnings from non-basmati rice was recorded to Rs. 1,324.36 crores, it was 64.37 percent less ascompared to 1995-96 export earnings. However, the export earnings from non-basmati riceincreased more than 4 folds during 2001-02 as compared to 1991-92.

Total Rice
During 1991-92, a total quantity of 6.78 lakh mts of rice (Basmati + Non-Basmati ) wasexported from India to different countries in the world. The export of total rice increased duringsubsequent years and the export during 1995-96 rose to 49.14 lakh mts., which was more than sixfold increase in export as compared to 1991-92 export of total rice from India. There wasfluctuation in the export of total rice after 1995-96 and a total quantity of 21.98 lakh mts. of ricewas exported during 2001-02, which was less by 55.3 per cent as compared to 1995-96 export.Infact, there was 224.19 per cent over all increase in the export of rice from India during 2001-02as compared to the export of 1991-92.Export earnings from the export of total rice from India during 1991-92 was Rs. 755.59crores and it increased to Rs. 4,568.08 crores during 199596, which was more than five foldsincrease. During subsequent years after 1995-96, the export earnings from total rice export fromIndia registered fluctuating trends and it was Rs. 3,163.44 crores during 2001-02, which was less by 30.7 per cent as compared to 1995-96 export value. However, the export value increased morethan three folds during 2001-02 over 1991-92 to 200102. Exports of Basmati and Non-Basmatirice from India over 1991-92 export value during 199192 to 2001-02 are given in Table-3.

ROLE OF RICE IN THE EXPORT EARNINGS Basmati Rice Rice plays an important role in the export earnings of the country. Among the agricultural products, Basmati rice is one of the commodity, which is exported to many countries in the worldand contributing considerable share in the export earnings of total agricultural products. Exportearnings realized from the export of basmati rice during the last nine years i.e., from 1993-94 to2001-02 are discussed hereunder.Export value realized from the export of Basmati rice during 1993-94 was Rs. 1,061.26crores and it declined during the subsequent two years. During 1996-97, export earnings fromBasmati rice was Rs. 1,247.64 crores, which increased during subsequent years and it wasrecorded Rs. 1,876.91 crores during 1998-99 and again declined during 1999-2000 and reachedmaximum to Rs. 2,165.96 crores during 2000-01, but again decreased to Rs. 1,839.08 croresduring 2001-02. Thus, there was a considerable fluctuation in the export earnings of basmati riceduring the last nine years, i.e., 1993-94 to 200102.The percentage share of export value of Basmati rice in the National Export earnings was1.52 per cent during 1993-94 and it witnessed decreasing trends during subsequent yearscontinuously. During 2001-02, the percentage share of basmati rice in the National Exportearnings was recorded 0.89 per cent.The percentage share of export value of Basmati rice in Agricultural Export earnings was8.43 per cent during 1993-94 and it decreased to 4.17 per cent during 199596. During 1996-97,it was recorded to 5.16 per cent and subsequent years the share of export value of basmati riceshowed increasing trends and it was maximum of 7.56 per cent during 2000-01 but againdecreased to 6.24 per cent during 2001-02.The percentage share of export value of basmati rice in the Food Grains export earningswas 76.10 per cent during 1993-94 and it decreased to 16.73 per cent during 1995-96. The percentage share of basmati rice again increased to 30.80 per cent and 45.01 per cent duringsubsequent years of 1996-97 and 1997-98 respectively. However, it again decreased to 28.81 per cent during 1998-99 but from 1999-2000 to 2000-01 it witnessed again increasing trends i.e.,50.07 per cent and 55.21 per cent respectively. The percentage share of export value of basmatirice decreased to 36.96 per cent during 2001-02. It is evident from the above analysis that theexport value of basmati rice fluctuated from year to year during 1993-94 to 2001-02, which hasaffected its percentage share in total food grains export earnings.The export of basmati rice during 1993-94 to 2001-02 constituted major share in the totalrice export from India. The percentage share of export value of basmati rice in the total riceexport earnings was 82.47 per cent during 1993-94. However, the percentage share of exportvalue of basmati rice in the total rice export earnings declined during the subsequent years up to2001-02 as compared to 1993-94.
During 1995-96, the percentage share of export value of basmati rice was recorded 18.62 per cent, which was the lowest during the past nine years period.The percentage share of export value of basmati rice showed increasing trend during 1996-97 and1997-98 as compared to previous year but during 1998-99, its percentage share declined to 29.88 per cent as compared to 50.00 per cent during previous year. The percentage share of export value of basmati rice of total rice export earnings registeredincreasing trend during the subsequent three years as compared to 1998-99 and it was recorded56.95 per cent, 73.59 per cent and 58.14 per cent during 1999-2000, 2000-01 and 200102respectively. It is evident from the above discussion that the export of basmati rice from

Indiafluctuated during the past nine years, which has affected its percentage share in total rice exportearnings during the same period.

Non-Basmati Rice Non-Basmati rice is next to Basmati rice, which is exported from India to many countriesin the world. The export value of non-basmati rice also contributes considerable share in theexport earnings of total agricultural products. Export earnings realized from the non-basmati riceduring 1993-94 to 2001-02 are discussed below.Export value realized from the export of non-basmati rice during 1993-94 was Rs. 225.46crores and it increased during the subsequent years up to 2001-02. During 1994-95 the exportvalue of non-basmati rice was Rs. 340.47 crores and it increased to Rs. 3,717.41 crores during1995-96 but it decreased to Rs. 1,924.72 crores and Rs. 1,685.38 crores during 1996-97 and1997-98. However, the export earnings from the export of non-basmati rice during 1998-99 againincreased to Rs. 4,403.85 crores, which was an all time high and again declined to Rs. 1,345.58crores, Rs. 777.26 crores and Rs. 1,324.36 crores during 1999-2000, 2000-01 and 2001-02respectively.The percentage share of export value of non-basmati rice in the National Export earningswas 0.32 per cent during 1993-94, which slightly increased to 0.41 per cent during following year and further increased to 3.50 per cent during 1995-96. During the subsequent years, the percentage share of export value of non-basmati rice in the National Export earnings againdeclined to 1.62 per cent and 1.30 per cent in the year 1996-97 and 1997-98 and during the year 1998-99, it again increased to 3.15 per cent. During the subsequent three years, it again decreasedto 0.85 per cent, 0.39 per cent and 0.64 per cent in the year 1999-2000, 2000-01 and 2001-02respectively.The percentage share of the export value of non-basmati rice in the Agricultural Exportearnings was 1.79 per cent during 1993-94 and it increased to 2.57 per cent during 1994-95.During 1995-96, the percentage share of the export value of non-basmati rice in the AgriculturalExport earnings increased to 18.22 per cent and decreased to 7.97 per cent and 6.78 per centduring the subsequent two years of 1996-97 and 1997-98. However, the percentage share againincreased to 17.26 per cent during 1998-99 and decreased to 5.32 per cent, 2.71 per cent and 4.49 per cent during 1999-2000, 2000-01 and 200102 respectively as compared to 1998-99. The percentage share of export value of non-basmati rice in the Food Grains Exportearnings was 16.18 per cent during 1993-94 and it increased to 24.91 per cent and 73.12 per centin the following years of 1994-95 and 1995-96. The percentage share of export value of non- basmati rice in the Food Grains Export earnings decreased to 47.51 per cent and 45.00 per centduring the next two years of 1996-97 and 1997-98 and it again increased to 67.61 per cent in theyear 1998-99. The percentage share of export value of non-basmati rice in the Food GrainsExport earnings decreased to 37.85 per cent, 19.81 per cent and 26.62 per cent during the year 1999-2000, 2000-01 and 2001-02 as compared to 1998-99.The percentage share of export value of non-basmati rice in the total rice export earningswas 17.52 per cent during 1993-94 and it increased to 28.24 per cent and 81.37 per cent duringthe following two years of 1994-95 and 1995-96. This percentage share decreased to 60.67 per cent and 50.00 per cent during the subsequent two years of 1996-97 and 1997-98. The percentageshare of export value of nonbasmati rice in the total rice export earnings increased to 70.12 per cent in the year 1998-99 over two previous years and it again decreased to 43.05 per cent, 26.41 per cent and 41.86 per cent during the subsequent three years of 1999-2000, 2000-01 and 2001-02 respectively. It can be seen from the fore going analysis that the export of non- basmati hasalso fluctuated during 1993-

94 to 2001-02 like basmati rice. The fluctuation was mainly due torise and fall in demand of the importing countries.

Total Rice
As already mentioned that rice is an important commodity under agricultural productsexported from India to various countries in the world and it earns annually considerable amountof foreign exchange for the nation. During 1993-94 an amount of Rs. 1,286.72 crores wasrealized from the export of rice. The same amount increased to Rs. 4,568.08 crores during 1995-96 and it was recorded Rs. 6,280.76 crores during 1998-99, an all time high export earnings fromrice. During subsequent years the export earnings declined and it was recorded Rs. 3,163.44crores during 2001-02.The percentage share of export value of rice (including basmati & non- basmati) in the National Export earnings was 1.84 per cent during 1993-94 and it increased to 4.30 per centduring 1995-96 but declined during the two subsequent years and again went up to 4.49 per centduring 1998-99. During the subsequent years its percentage share declined to 1.96 per cent, 1.46 per cent and 1.52 per cent during 1999-2000, 2000-01 and 2001-02 respectively.The percentage share of export value of rice in Agricultural Export earnings was 10.22 per cent during 1993-94 and it increased to 22.40 per cent during 1995-96 but it declined during thetwo subsequent years and again went up to 24.62 per cent during 1998-99. During the subsequentyears its percentage share declined to 12.35 per cent, 10.27 per cent and 10.73 per cent during1999-2000, 2000-01 and 2001-02 respectively.
The percentage share of export value of rice in the Food Grain Export earnings was 92.27 per cent during 1993-94 and it declined to 90.02 per cent during 1997-98 and again went up to 96.42 per cent during 1998-99. However, during the subsequent years its percentage sharecontinuously declined to 87.92 per cent, 75.02 per cent and 63.58 per cent during 1999-2000,2000-01 and 2001-02 respectively. Percentage share of basmati and non-basmati rice exports inTotal National Export, Total Agricultural Exports and Food Grains Export during 1993-94 to2001-02 are given in Table-4.

COUNTRY-WISE EXPORT OF RICE FROM INDIA Rice is exported from India to many countries in the world. Infact, India is facing stiff competition in the international markets for the export of rice. Thailand is the world's largest riceexporting country. Vietnam is another large exporter of rice, but currently the demand for Vietnamese rice has steeply declined in the international market due to which India is likely to become world's second largest exporter of rice.Thailand, India and U.S.A. are the only countries making parboiled rice and exporting it.Thailand, Vietnam and India are also exporting 100% broken rice. Data in respect of parboiledand broken rice exports separately from India are not available. Hence, export of rice from Indiahas been divided in to two category i.e., basmati rice and non-basmati rice and the same arediscussed in this chapter. Basmati Rice The leading aromatic fine quality rices in world trade popularly known as Basmati rice isfetching 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 fromIndia. The exports of basmati rice during 1998-99 to 2000-2001 are discussed below :-During 1998-99 Saudi Arabia was the major importer of basmati rice from India followed by U.K., Kuwait and U.A.E. and percentage shares of these countries of total exports from Indiawere 74.11%, 7.66%, 5.25% and 3.34% respectively. Thus, more than 90 per cent quantity of basmati rice was

exported to Saudi Arabia, U.K., Kuwait and UAE during 1998-99 andremaining quantity was exported to other countries in the world. A total quantity of 5,97,756 mtsof basmati rice was exported from India during 1998-99.During 1999-2000, these four countries remained as major basmati rice importers fromIndia and their percentage shares of total quantity of basmati rice exported from India was 62.14 per cent, 8.32 per cent, 7.42 per cent and 5.06 per cent respectively. The export to Saudi Arabiadeclined during 1999-2000 as compared to previous year. Infact, the export to U.K., Kuwait,UAE and U.S.A. increased as compared to 1998-99. The percentage share of four countriescomprising of Saudi Arab, U.K., Kuwait and U.A.E. were 82.94 per cent of total quantity of basmati rice exported from India during 1999-2000 as against 90.36 per cent during 1998-99. Theexport of basmati rice almost remained the same as it was during 1998-99 with slight fluctuation. A total quantity of 6,38,380 mts of basmati rice was exported from India during 19992000,which was 6.80 per cent higher than the export of previous year.The export of basmati rice to Saudi Arabia increased to 4,78,124 mts during 2000-01 asagainst 3,96,676 mts in the previous year. The percentage share of Saudi Arabia of total quantityof basmati rice exported from India during 2000-01 was 56.14 per cent as against 62.14 per centin the previous year. Infact, total quantity exported to Saudi Arabia increased during 2000-01, butthe percentage share of Saudi Arab of total quantity exported from India decreased due toincrease in the percentage share of other importing countries. Other major importing countries of basmati rice from India were U.K., U.A.E., Kuwait and U.S.A. during 2000-01.The export to U.K. during 2000-01 was 1,11,984 mts, which was 110.96 per cent higher than previous year and the percentage share of U.K. of total quantity of basmati rice exportedfrom India during 2000-01 was 13.15 per cent as against 8.32 per cent in the previous year.Similarly the export to Kuwait and U.S.A. also increased from 47,338 mts and 16,036 mts during1999-2000 to 82,800 mts and 35,840 mts during 2000-01 respectively. However, the export toU.A.E. declined to 30,151 mts during 200001 as against 32,297 mts during previous year. A totalquantity of 8,51,722 mts of basmati rice was exported from India during 2000-01, which was33.42 per cent higher than the export of previous year. Country-wise export of basmati rice fromIndia during 1998-99 to 2000-01 is given in Table.5. Non-Basmati Rice The export of non-basmati rice from India was on its peak during 1995-96 and a totalquantity of 45.41 lakh mts was exported to different countries in the world. Again the exportcrossed to 43.66 lakh mts during 1998-99, but during subsequent years, the export of non-basmatirice again came down significantly due to various reasons. The export of non-basmati rice during1998-99 to 2000-01 are discussed below -During 1998-99, Bangladesh, Ivory cost, Nigeria, Russia, Saudi Arabia, Somalia and SouthAfrica were the major importers of non-basmati rice from India. Infact, more than fifty per centof total export of non-basmati rice from India was exported to Bangladesh alone during 1998-99.A total quantity of 23,31,689 mts of non-basmati rice was exported to Bangladesh during 1998-99, which was 53.41 per cent of total quantity exported from India during the same year. Nextmajor country was South Africa for import of non-basmati rice from India. A total quantity of 5,25,013 mts of non-basmati rice was exported to South Africa during 1998-99, which was 12.03 per cent of total quantity exported from India during the same year. The export to Ivory cost was1,61,817 mts of non-basmati rice, which was 3.71 per cent of total quantity of non-basmati riceexported from India during 1998-99.Similarly, the export of non-basmati rice to Somalia was 1,40,064 mts., which was 3.21 per cent of total

quantity of non-basmati rice exported from India during 1998-99. The export toRussia and Saudi Arabia were 1,21,828 mts and 1,26,036 mts of non-basmati rice during 1998-99, which were 2.79 per cent and 2.89 per cent of total quantity exported from India during the same year respectively. The export to other countries was considerably less as compared toquantity exported to the countries discussed above. A total quantity of 43,65,888 mts of non- basmati rice was exported from India to various countries in the world during 1998-99.Bangladesh remained major importer of non-basmati rice from India during 1999-2000also but total export of nonbasmati rice to Bangladesh declined to 84.98 per cent during 1999-2000 as compared to previous year. A total quantity of 3,50,088 mts. of non-basmati rice wasexported to Bangladesh during 1999-2000 as against 2331689 mts. exported during 1998-99. The percentage share of Bangladesh of total quantity of non-basmati rice exported from India during1999-2000 was 27.83 percent as against 53.41 percent in the previous year. Next to Bangladesh, Saudi Arabia was the major country, which imported non-basmati ricefrom India during 1999-2000. A quantity of 1,64,288 mts. of non-basmati rice was exported fromIndia to Saudi Arabia during 1999-2000 as against 1,26,036 mts during previous year, which was30.35 per cent higher. The percentage share of Saudi Arabia of total quantity of non-basmati riceexported from India during 1999-2000 was 13.06 per cent as against 2.89 percent during the previous year.The exports to Nigeria, Russia, Sri Lanka and South Africa were 1,09,046 mts, 1,50,590mts, 62,401 mts and 1,40,334 mts of non-basmati rice during 1999-2000, which ware 8.67 per cent, 11.97 per cent, 4.96 per cent and 11.16 per cent of total quantity exported from India duringthe same year, considerably less as compared to the countries discuss above. A total quantity of 12,57,790 mts of non-basmati rice was exported from India to various countries in the worldduring 1999-2000, which was 71.19 per cent less as compared to 43,65,888 mts exported duringthe previous year.The major quantity of non-basmati rice was exported to Bangladesh during 2000-01 as itwas during the previous year. A total quantity of non-basmati rice exported to Bangladesh during2000-01 was 9.26 per cent less as compared to previous year but the percentage share of Bangladesh of total quantity of non-basmati rice exported from India during 2000-01 was 46.56 per cent, which was more as against 27.83 per cent during the previous year. A total quantity of 3,17,663 mts of non-basmati rice was exported from India to Bangladesh during 2000-01 asagainst 3,50,088 mts exported during the previous year.Other major countries that imported non-basmati rice from India during 2000-01 were Nepal, Saudi Arabia, Singapore, South Africa, U.A.E. and Yemen Republic. Total quantityexported to these countries during 2000-01 where 20,183 mts, 1,53,841 mts, 17,410 mts, 57,768mts, 26,647 mts and 14,913 mts respectively and their percentage share in total quantity of non- basmati rice exported from India during the same year were 2.96 per cent, 22.55 per cent 2.55 per cent, 8.47 per cent, 3.91 per cent and 2.19 per cent respectively. A total quantity of 6,82,270 mts.of non-basmati rice was exported from India to various countries in the world during 2000-01,which was 45.76 per cent less as compared to 12,57,790 mts. exported during previous year.Country wise exports of nonbasmati rice during 1998-99 to 2000-01 are given in Table- 6. AVERAGE EXPORT PRICE Data on exact export price of rice is not readily available in this Directorate. However, theaverage export price per quintal of rice has been worked out year wise for the basmati and non- basmati rice separately. For the purpose of calculation, total quantity of rice exported and itsvalue realized in rupees have been taken separately for basmati and non-basmati rice and then thevalue of export divided by the quantity of rice exported to arrive at the average export price

of rice per quintal year wise for basmati & non-basmati. Average export price thus worked out has been discussed in this chapter. Average export price of basmati and non-basmati rice during 1992-93 to 2001-02 are given in Table-7. Basmati Rice It is seen from the average export price data given in Table-7 that the export price of Basmati Rice has fluctuated significantly year after year. During 1992-93, average export price of basmati rice was Rs. 2,465 per quintal, which declined continuously year after year up to 1996-97as compared to 1992-93. Average export price for basmati rice has been worked out to Rs. 2,013 per quintal during 1993-94 and the same has decreased to Rs. 1,957 per quintal during 1994-95.Average export price again increased to Rs. 2,297 per quintal during 1995-96 over previous year price and increasing trend in average export price continued up to 1998-99.During 1996-97, average export price has been worked out to Rs. 2,385 per quintal, whichincreased to Rs. 2,841 and Rs. 3,140 per quintal during 1997-98 and 1998-99 respectively.However, average export price of Basmati rice declined during the following three years ascompared to 1998-99 average export price. During 1999-2000, average export price was workedto Rs. 2,789 per quintal, which came down to Rs. 2,543 per quintal during 2000-01 and it againwent up to Rs. 2,762 per quintal during 2001-02.The reason for fluctuation in average export price of Basmati rice is attributed to differentquality and quantity of rice exported to different countries during different years. A particular country may import one year a particular quality/grade of rice and the same country may importanother quality/grade of rice during next or subsequent years. Thus, different quality and quantityof rice exported to different countries at different export price rate may probably be the reason for fluctuation of average export price of Basmati rice. Non-Basmati Rice Average export price data given in Table-7 reveals that in case of Non-Basmati Rice,almost same trend of fluctuation in average export price is seen as in case of Basmati Rice.During 199293, average export price was worked out to Rs. 684 per quintal for Non-BasmatiRice, which declined to Rs. 399 per quintal during 1993-94. However, average export priceincreased to Rs. 759 per quintal during 1994-95 over previous year and increasing trend inaverage export price continued up to 2000-01 as compared to 1994-95. Average export price was worked to Rs. 819 per quintal during 1995-96, which increasedto Rs. 968 per quintal during 1996-97 and slightly decreased to Rs. 939 per quintal during 1997-98 over previous year. During 1998-99, average export price increased to Rs. 1,009 per quintalover previous year and continued to increase in linear order to Rs. 1,070 per quintal and Rs.1,139 per quintal during subsequent two years of 1999-2000 and 2000-01. There was a sharpdeclined in average export price to Rs. 864 per quintal during 2001-02 over previous five years.The reason for fluctuation in average export price of non- basmati rice could be the same asdiscussed above in the case of Basmati Rice. PROBLEMS OF RICE EXPORT FROM INDIA India is facing stiff competition in the world markets for export of rice. Besides, there aremany 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 longway to sustain the exports. Some of the major problems are discussed in this chapter below:

-1.As per the state Govt. policy, various taxes are imposed on rice exports, such as the statesare imposing Purchase Tax (on indirect export), Market Fees, Rural Development Fund,Administrative Charges etc. These taxes are rendering the pricing of rice internationally incompetitive. Thus, Indian rice becomes costlier in the international market as compared toother competing countries in the world and Indian rice exports get setback many times.Infact, in Pakistan rice meant for exports specially the branded ones, duties are extremelylow or duty free.2.There is lack of proper infrastructural facilitie s. Many times exporters, when they carrytheir 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 stocks properly and safely atsea port, exporters have to face lot of difficulties, besides, it adds additional expenditureto the exporters.3.Due to increase in the cost of inputs used for paddy cultivation the production cost goesup and the Minimum Support Price (MSP) for paddy is enhanced every year by thegovt. 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, whichreduces 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 comparedto Indian rice.5.The major rice producing nations have decreased the price to capture the internationalmarkets but Indian rice prices are inelastic due to relatively high cost of production and becomes 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 inwhich 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 becomescostly due to recovery of higher percentage of broken rice. Therefore, conventional millsare required to be modernized to get recovery of higher percentage of head rice suitablefor 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 o ther exporting countrieslike Thailand, Vietnam and Pakistan because the cost of production in these competingcountries is low as compared to the cost of production in India. Infact, trade segment believes that Indian rice can face the global competition if subsidy is provided.9.In these days basmati rice is facing aroma problem, because intensity of aroma intraditional basmati varieties is not so high as it used to be. Infact, basmati varieties arehighly prone to lodging and lodging affects the natural grain development. In suchsituation both aroma and linear kernel elongation are affected.10.Post harvest handling of produce is another important aspect. Generally, farmers areharvesting 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

themajor reasons for poor quality of basmati rice. Infact, at the time of rice processing thegrain size can be taken care of, but it is a waste. However, using good quality seed theloss can be converted into profit. PROSPECTS OF RICE EXPORT FROM INDIA As mentioned in the previous chapter that rice is exported from India to many countries inthe world. 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 therecent past, particularly in the case of non-basmati rice. There are several factors responsible for this growth. Infact exports depend not only on our ability to sell, but also on the willingness of importers to buy. Some times 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 peoplereduce 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 thecountry and abroad. Basmati rice is possessing unique grain, cooking, eating and digestivequalities. Hence, majority of people in the country and abroad have developed liking for basmatirice. 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 contentcharacteristics, grown different states of the country.Katarnirice is grown in Bihar,RandhunipagalandBhadshahbhogare grown in West Bengal, each one of these varieties is fetching higher price in the local markets. These varieties are having localized preference andtheir demand preference could not spread widely elsewhere. Even some of these are possessingmore aroma than the typical basmati varieties. Infact, the harmonious combination of variousfactors 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 andinternational markets and it also fetches high premium. Commercially Taraori Basmati, Basmati-370 and Basmati Type-3 are very popular. All these three varieties are similar in starchcharacteristics 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 beenwell accepted by the trade and there is good prospects for export. Infact, Pusa Basmati-1 is at present most profitable variety in rice, in spite of being highly susceptible to major insects, pestsand diseases. Under proper crop management condition farmers can get 4-6 tonnes paddy yield per hectare. This variety is much favoured by the farmers, traders and consumers. During cookingit has got linear expansion. It is also easily digestible. Hence, this variety is much preferred by theconsumers in India and abroad.With the every coming year, domestic as well as international demand for basmati rice isincreasing. If desired aroma in basmati rice along with other quality characteristics aremaintained, these measures may help to boost the export of basmati rice from India .

Non-Basmati Rice Non-basmati rice exports have also suffered much due to the competition from exportingcountries like Thailand, Vietnam and Pakistan because of their low cost of production. In therecent past export of non-basmati rice was fluctuating year after year due to various reasons. Theexport of non-basmati rice was on its peak during 1995-96 it came down during 1998-99 due tomany reasons. Sometime, export is also affected if good harvest is there in the importingcountries, they reduce their import accordingly. If rice exporters made their sincere efforts withGovt. supporting export policy, non-basmati rice export is expected to increase in future. EXPORT PROMOTION POLICY India is facing stiff competition in the world markets for the export of rice. Thailand,Vietnam and Pakistan are the competitors for India in the export of rice. Thailand is occupyingfirst position in the international markets due to its better quality and low price. Vietnam was theworld's second largest exporter of rice but currently the demand for Vietnamese rice has steeplydeclined in the international markets. Therefore, Indian rice exports are set to reach second placeafter Thailand, edging out Vietnam as per report of Food & Agricultural Organisation ( FAO ).There is also good scope for India to take advantage of the new trade policy for sustainingthe export of rice. This can be achieved if production is made keeping in view the demand of international markets by increased investment in Research and Development coupled withrealistic export policy. The following export policies may be taken in to account to sustain theexport of rice in future:1.Production of quality seeds and ensuring its availability to farmers at subsidized rates.2.Low cost production technology may be developed to reduce the cost of production andmaking Indian rice more competitive in the international markets.3.Survey may be conducted to identify contiguous zones for cultivation of export qualityrice.4.Quality of rice may be maintained keeping in view the requirements of the internationalmarkets.5.Breeding programme may be initiated to develop high yielding export quality rice both for basmati and non-basmati rice to enable the exporters to compete in the world'smarkets.6.Production, procurement and processing of basmati rice may be organized in a systematic manner for maintaining its quality for export purposes.7.Conventional rice mills may be modernized to ensure high milling recovery of head riceand effective availability of by- products for better and profitable utilization both for industrial and feed purposes.8.Intelligence wing may be set up to keep watch over the requirement of various rice importing countries so that Research & Development may be strengthened accordingly to produce quality rice for export purposes.9.Export friendly trade policies may be a dopted with improvement of infrastructurefacilities for promoting export.10.Sufficient export facilities may be made available to the exporters at Sea Port.

SUGGESTIONS FOR SUSTAINING RICE EXPORT Rice export constitutes a considerable share in the national exports. India is likely to bemajor exporters next to Thailand during 2003 and its influence on the global rice trade will besignificant. Keeping in view the importance of rice in the national export items, concerted effortsare required to be made to further promote the export of rice. There is a good scope for India totake advantage of the new trade opportunities for promoting the export of rice. This can beachieved if production is made as per the requirements of international markets by increasedinvestment in Research and Development coupled with export friendly trade policies.The following are few of the measures suggested to sustain the export of rice in future: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 tomeet 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 productionto enable the exporters to compete with competing countries in the international markets.

96.42 per cent during 1998-99. However, during the subsequent years its percentage sharecontinuously declined to 87.92 per cent, 75.02 per cent and 63.58 per cent during 1999-2000,2000-01 and 2001-02 respectively. Percentage share of basmati and non-basmati rice exports inTotal National Export, Total Agricultural Exports and Food Grains Export during 1993-94 to2001-02 are given in Table-4. COUNTRY-WISE EXPORT OF RICE FROM INDIA Rice is exported from India to many countries in the world. Infact, India is facing stiff competition in the international markets for the export of rice. Thailand is the world's largest riceexporting country. Vietnam is another large exporter of rice, but currently the demand for Vietnamese rice has steeply declined in the international market due to which India is likely to become world's second largest exporter of rice.Thailand, India and U.S.A. are the only countries making parboiled rice and exporting it.Thailand, Vietnam and India are also exporting 100% broken rice. Data in respect of parboiledand broken rice exports separately from India are not available. Hence, export of rice from Indiahas been divided in to two category i.e., basmati rice and non-basmati rice and the same arediscussed in this chapter. Basmati Rice The leading aromatic fine quality rices in world trade popularly known as Basmati rice isfetching 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 fromIndia. The exports of basmati

rice during 1998-99 to 2000-2001 are discussed below :-During 1998-99 Saudi Arabia was the major importer of basmati rice from India followed by U.K., Kuwait and U.A.E. and percentage shares of these countries of total exports from Indiawere 74.11%, 7.66%, 5.25% and 3.34% respectively. Thus, more than 90 per cent quantity of basmati rice was exported to Saudi Arabia, U.K., Kuwait and UAE during 199899 andremaining quantity was exported to other countries in the world. A total quantity of 5,97,756 mtsof basmati rice was exported from India during 1998-99.During 1999-2000, these four countries remained as major basmati rice importers fromIndia and their percentage shares of total quantity of basmati rice exported from India was 62.14 per cent, 8.32 per cent, 7.42 per cent and 5.06 per cent respectively. The export to Saudi Arabiadeclined during 1999-2000 as compared to previous year. Infact, the export to U.K., Kuwait,UAE and U.S.A. increased as compared to 1998-99. The percentage share of four countriescomprising of Saudi Arab, U.K., Kuwait and U.A.E. were 82.94 per cent of total quantity of basmati rice exported from India during 1999-2000 as against 90.36 per cent during 1998-99. Theexport of basmati rice almost remained the same as it was during 1998-99 with slight fluctuation.

A total quantity of 6,38,380 mts of basmati rice was exported from India during 1999-2000,which was 6.80 per cent higher than the export of previous year.The export of basmati rice to Saudi Arabia increased to 4,78,124 mts during 2000-01 asagainst 3,96,676 mts in the previous year. The percentage share of Saudi Arabia of total quantityof basmati rice exported from India during 2000-01 was 56.14 per cent as against 62.14 per centin the previous year. Infact, total quantity exported to Saudi Arabia increased during 2000-01, butthe percentage share of Saudi Arab of total quantity exported from India decreased due toincrease in the percentage share of other importing countries. Other major importing countries of basmati rice from India were U.K., U.A.E., Kuwait and U.S.A. during 2000-01.The export to U.K. during 2000-01 was 1,11,984 mts, which was 110.96 per cent higher than previous year and the percentage share of U.K. of total quantity of basmati rice exportedfrom India during 2000-01 was 13.15 per cent as against 8.32 per cent in the previous year.Similarly the export to Kuwait and U.S.A. also increased from 47,338 mts and 16,036 mts during1999-2000 to 82,800 mts and 35,840 mts during 200001 respectively. However, the export toU.A.E. declined to 30,151 mts during 2000-01 as against 32,297 mts during previous year. A totalquantity of 8,51,722 mts of basmati rice was exported from India during 2000-01, which was33.42 per cent higher than the export of previous year. Country-wise export of basmati rice fromIndia during 1998-99 to 2000-01 is given in Table.5. Non-Basmati Rice The export of non-basmati rice from India was on its peak during 1995-96 and a totalquantity of 45.41 lakh mts was exported to different countries in the world. Again the exportcrossed to 43.66 lakh mts during 1998-99, but during subsequent years, the export of non-basmatirice again came down significantly due to various reasons. The export of non-basmati rice during1998-99 to 2000-01 are discussed below -During 1998-99, Bangladesh, Ivory cost, Nigeria, Russia, Saudi Arabia, Somalia and SouthAfrica were the major importers of non-basmati rice from India. Infact, more than fifty per centof total export of non-basmati rice from India was exported to Bangladesh alone during 1998-99.A total quantity of 23,31,689 mts of non-basmati rice was exported to Bangladesh during 1998-99, which was 53.41 per cent of total quantity exported from India during the same year. Nextmajor country was South Africa for import of non-basmati rice from India. A total quantity of 5,25,013 mts of non-basmati rice was exported to South Africa during 1998-99, which was 12.03 per cent of total quantity exported from India during the same year. The export to Ivory cost was1,61,817 mts of non-basmati rice, which was 3.71 per cent of total quantity of non-basmati riceexported from India during 1998-99.Similarly, the export of nonbasmati rice to Somalia was 1,40,064 mts., which was 3.21 per cent of total quantity of non-basmati rice exported from India during 1998-99. The export toRussia and Saudi Arabia were 1,21,828 mts and 1,26,036 mts of non-basmati rice during 1998-99, which were 2.79 per cent and 2.89 per cent of total quantity exported from India during the

same year respectively. The export to other countries was considerably less as compared toquantity exported to the countries discussed above. A total quantity of 43,65,888 mts of non- basmati rice was exported from India to various countries in the world during 1998-99.Bangladesh remained major importer of non-basmati rice from India during 1999-2000also but total export of non-basmati rice to Bangladesh declined to 84.98 per cent during 1999-2000 as compared to previous year. A total quantity of 3,50,088 mts. of non-basmati rice wasexported to Bangladesh during 1999-2000 as against 2331689 mts. exported during 1998-99. The percentage share of Bangladesh of total quantity of non-basmati rice exported from India during1999-2000 was 27.83 percent as against 53.41 percent in the previous year. Next to Bangladesh, Saudi Arabia was the major country, which imported non-basmati ricefrom India during 1999-2000. A quantity of 1,64,288 mts. of non-basmati rice was exported fromIndia to Saudi Arabia during 1999-2000 as against 1,26,036 mts during previous year, which was30.35 per cent higher. The percentage share of Saudi Arabia of total quantity of non-basmati riceexported from India during 1999-2000 was 13.06 per cent as against 2.89 percent during the previous year.The exports to Nigeria, Russia, Sri Lanka and South Africa were 1,09,046 mts, 1,50,590mts, 62,401 mts and 1,40,334 mts of nonbasmati rice during 1999-2000, which ware 8.67 per cent, 11.97 per cent, 4.96 per cent and 11.16 per cent of total quantity exported from India duringthe same year, considerably less as compared to the countries discuss above. A total quantity of 12,57,790 mts of non-basmati rice was exported from India to various countries in the worldduring 1999-2000, which was 71.19 per cent less as compared to 43,65,888 mts exported duringthe previous year.The major quantity of non-basmati rice was exported to Bangladesh during 2000-01 as itwas during the previous year. A total quantity of non-basmati rice exported to Bangladesh during2000-01 was 9.26 per cent less as compared to previous year but the percentage share of Bangladesh of total quantity of non-basmati rice exported from India during 2000-01 was 46.56 per cent, which was more as against 27.83 per cent during the previous year. A total quantity of 3,17,663 mts of non-basmati rice was exported from India to Bangladesh during 2000-01 asagainst 3,50,088 mts exported during the previous year.Other major countries that imported non-basmati rice from India during 2000-01 were Nepal, Saudi Arabia, Singapore, South Africa, U.A.E. and Yemen Republic. Total quantityexported to these countries during 2000-01 where 20,183 mts, 1,53,841 mts, 17,410 mts, 57,768mts, 26,647 mts and 14,913 mts respectively and their percentage share in total quantity of nonbasmati rice exported from India during the same year were 2.96 per cent, 22.55 per cent 2.55 per cent, 8.47 per cent, 3.91 per cent and 2.19 per cent respectively. A total quantity of 6,82,270 mts.of nonbasmati rice was exported from India to various countries in the world during 2000-01,which was 45.76 per cent less as compared to 12,57,790 mts. exported during previous year.Country wise exports of nonbasmati rice during 1998-99 to 2000-01 are given in Table- 6. AVERAGE EXPORT PRICE

Data on exact export price of rice is not readily available in this Directorate. However, theaverage export price per quintal of rice has been worked out year wise for the basmati and non- basmati rice separately. For the purpose of calculation, total quantity of rice exported and itsvalue realized in rupees have been taken separately for basmati and non-basmati rice and then thevalue of export divided by the quantity of rice exported to arrive at the average export price of rice per quintal year wise for basmati & non-basmati. Average export price thus worked out has been discussed in this chapter. Average export price of basmati and non-basmati rice during 1992-93 to 2001-02 are given in Table-7. Basmati Rice It is seen from the average export price data given in Table-7 that the export price of Basmati Rice has fluctuated significantly year after year. During 1992-93, average export price of basmati rice was Rs. 2,465 per quintal, which declined continuously year after year up to 1996-97as compared to 1992-93. Average export price for basmati rice has been worked out to Rs. 2,013 per quintal during 1993-94 and the same has decreased to Rs. 1,957 per quintal during 1994-95.Average export price again increased to

Rs. 2,297 per quintal during 1995-96 over previous year price and increasing trend in average export price continued up to 1998-99.During 1996-97, average export price has been worked out to Rs. 2,385 per quintal, whichincreased to Rs. 2,841 and Rs. 3,140 per quintal during 1997-98 and 1998-99 respectively.However, average export price of Basmati rice declined during the following three years ascompared to 1998-99 average export price. During 1999-2000, average export price was workedto Rs. 2,789 per quintal, which came down to Rs. 2,543 per quintal during 2000-01 and it againwent up to Rs. 2,762 per quintal during 2001-02.The reason for fluctuation in average export price of Basmati rice is attributed to differentquality and quantity of rice exported to different countries during different years. A particular country may import one year a particular quality/grade of rice and the same country may importanother quality/grade of rice during next or subsequent years. Thus, different quality and quantityof rice exported to different countries at different export price rate may probably be the reason for fluctuation of average export price of Basmati rice. Non-Basmati Rice Average export price data given in Table-7 reveals that in case of Non-Basmati Rice,almost same trend of fluctuation in average export price is seen as in case of Basmati Rice.During 1992-93, average export price was worked out to Rs. 684 per quintal for Non-BasmatiRice, which declined to Rs. 399 per quintal during 1993-94. However, average export priceincreased to Rs. 759 per quintal during 1994-95 over previous year and increasing trend inaverage export price continued up to 2000-01 as compared to 199495.

Average export price was worked to Rs. 819 per quintal during 1995-96, which increasedto Rs. 968 per quintal during 1996-97 and slightly decreased to Rs. 939 per quintal during 1997-98 over previous year. During 1998-99, average export price increased to Rs. 1,009 per quintalover previous year and continued to increase in linear order to Rs. 1,070 per quintal and Rs.1,139 per quintal during subsequent two years of 1999-2000 and 2000-01. There was a sharpdeclined in average export price to Rs. 864 per quintal during 2001-02 over previous five years.The reason for fluctuation in average export price of nonbasmati rice could be the same asdiscussed above in the case of Basmati Rice. PROBLEMS OF RICE EXPORT FROM INDIA India is facing stiff competition in the world markets for export of rice. Besides, there aremany 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 longway to sustain the exports. Some of the major problems are discussed in this chapter 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 incompetitive. Thus, Indian rice becomes costlier in the international market as compared toother competing countries in the world and Indian rice exports get setback many times.Infact, in Pakistan rice meant for exports specially the branded ones, duties are extremelylow or duty free.2.There is lack of proper infrastructural facilities. Many times exporters, when they carrytheir 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 stocks properly and safely atsea port, exporters have to face lot of difficulties, besides, it adds additional expenditureto 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 thegovt. 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, whichreduces 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 comparedto Indian rice.5.The major rice producing nations have decreased the price to capture the

internationalmarkets but Indian rice prices are inelastic due to relatively high cost of production and becomes 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 inwhich 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 becomescostly due to recovery of higher percentage of broken rice. Therefore, conventional millsare required to be modernized to get recovery of higher percentage of head rice suitablefor 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 countrieslike Thailand, Vietnam and Pakistan because the cost of production in these competingcountries is low as compared to the cost of production in India. Infact, trade segment believes that Indian rice can face the global competition if subsidy is provided.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. Infact, basmati varieties arehighly prone to lodging and lodging affects the natural grain development. In suchsituation both aroma and linear kernel elongation are affected.10.Post harvest handling of produce is another important aspect. Generally, farmers areharvesting 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 themajor reasons for poor quality of basmati rice. Infact, at the time of rice processing thegrain size can be taken care of, but it is a waste. However, using good quality seed theloss can be converted into profit. PROSPECTS OF RICE EXPORT FROM INDIA As mentioned in the previous chapter that rice is exported from India to many countries inthe world. 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 therecent past, particularly in the case of non-basmati rice. There are several factors responsible for this growth. Infact exports depend not only on our ability to sell, but also on the willingness of importers to buy. Some times 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 peoplereduce 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 thecountry and abroad. Basmati rice is possessing unique grain, cooking, eating and digestivequalities. Hence, majority of people in the country and abroad have developed liking for basmatirice. 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.