Rice (Oryza sativa) is a plant of the grass family which feeds more than half of the world's human

population. Rice
cultivation is well suited to poor countries because - though it is very labor-intensive to cultivate - with plenty of
water for irrigation it can be grown practically anywhere, even on steep hillsides. Rice is the world's third largest
crop, behind maize and wheat.

VARIETIES OF RICE

There are about 40,000 varieties of rice. Some types of Specialty Rice are:

 Basmati Rice
 Kalijira Rice
 Para Rice
 Rissotto
 Lousiana Rice
 Red Rice
 Black Rice
 Carolina Rice
 Jasmine Rice
 Arboria Rice
 Della Rice
 Texamati
 Wehani

Indian rice varieties include

 long-grained Basmati (grown in the North)

 medium-grained Patna
 short-grained Masoori

India in World Rice Industry

India produces about 80 million tonnes of rice annually.

Country 1999 2000 2001 2002 2003

Thailand 6,679 6,549 7,521 7,500 7,500
India 2,752 1,449 1,936 4,500 4,000
Vietnam 4,555 3,370 3,528 2,800 3,500
United States 2,644 2,847 2,541 2,950 2,950
China 2,708 2,951 1,847 1,500 2,250
Burma 57 159 670 1,500 1,500
Pakistan 1,838 2,026 2,417 1,250 800
Uruguay 681 642 806 650 650
Australia 667 617 618 400 500
Egypt 320 500 705 500 500
EU 348 308 275 275 325
Argentina 674 332 363 350 300
Guyana 252 167 175 150 175
Others 766 929 1,051 624 614
World Total 24,941 22,846 24,453 24,949 25,564

Units : Thousand metric tons

Factors Influencing Rice Markets

 Enterprise capacities :Management capacity, organization of export trade, linkages and market presence

 Transport and storage :Transport conditions and cost are particularly sensitive factors for ACP exports,
especially for the numerous land-locked and island countries. Organizing logistics is a core competency for
most exporters from ACP countries.

 Government policies : Exchange rates, Fiscal policies, Export incentives and export promotion

All-India Area, Production And Yield Of Rice

State-Wise Area, Production And Yield Of Rice (1997-98)

State Area % of Production % of Total Yield % Coverage under

(M.hects Total (M.tonnes) Production (Kgs/Hect Irrigation(1995-96)
) Area )
1 2 3 4 5 6 12
ANDHRA 3.5 8.1 8.51 10.3 2431 94.8
PRADESH
ASSAM 2.49 5.7 3.38 4.1 1359 33.8
BIHAR 4.98 11.5 6.77 8.2 1362 40.2
GUJARAT 0.67 1.5 1.04 1.3 1550 55.6
HARYANA 0.91 2.1 2.55 3.1 2797 99.4
JAMMU & 0.28 0.6 0.55 0.7 1992 91.2
KASHMIR
KARNATAKA 1.38 3.2 3.33 4 2419 66.8
KERALA 0.4 0.9 0.66 0.8 1636 49.9
MADHYA 5.4 12.4 4.49 5.5 831 23.7
PRADESH
MAHARASHTRA 1.48 3.4 2.39 2.9 1621 26.3
ORISSA 4.5 10.4 6.2 7.5 1380 35.5
PUNJAB 2.28 5.3 7.9 9.6 3465 99.1
TAMIL NADU 2.36 5.4 7.05 8.6 2987 92
UTTAR 5.66 13 12.17 14.8 2148 62.3
PRADESH
WEST BENGAL 5.9 13.6 13.24 16.1 2243 27.2
OTHERS 1.23 2.8 2.07 2.5 . .
ALL-INDIA 43.42 100 82.3 100 1895 50.1

India is the world's second largest rice producer, followed by China. The production of rice in India has shown an
increasing trend which is evident from the Table given below:

YEAR PRODUCTION (in million tonnes)

1950-51 20.58

1960-61 34.58

1970-71 42.22

1980-81 53.63

1990-91 74.29

1997-98 82.54

1998-99 86.08

1999-00 89.68

2000-01 84.98

2001-02 93.08

The demand for rice in India is projected at 128 million tonnes for the year 2012 and will require a production
level of 3,000 kg/hectare significantly greater than the present average yield of 1,930 kg/hectare. Government of
India is targeting to achieve production of 129 million tonnes of rice by 2011-12 with the growth rate of 3.7%
along with other foodgrains.

Statewise Production of Rice in India Production (in million tonnes)

State 2000-01 1999-00

Uttar Pradesh 42.32 45.65

Punjab 25.32 25.20

Andhra Pradesh 14.53 13.70

West Bengal 13.83 14.92

Haryana 13.25 13.06

Bihar 12.06 14.39

Karnataka 10.95 9.86

Maharashtra 10.08 12.70

Rajasthan 10.04 10.68

Madhya Pradesh 8.93 21.27

Tamil Nadu 8.90 8.97

Orissa 4.98 5.62

Assam 4.17 4.04

Gujarat 3.68 4.05

Chhatisgarh 3.65 -

Jharkhand 2.01 -

Uttaranchal 1.73 -

Others 5.49 2.71

India Area, Production And Yield Of Rice

Year Area Production Yield % CoverageIrrigation

(M.hects) (M.tonnes) (kgs/hect)
1949-50 30.52 23.54 771 32.3
1950-51 30.81 20.58 668 31.7
1951-52 29.83 21.3 714 31.7
1952-53 29.97 22.9 764 32.3
1953-54 31.29 28.21 902 33.6
1954-55 30.77 25.22 820 34.4
1955-56 31.52 27.56 874 34.9
1956-57 32.28 29.04 900 35.4
1957-58 32.3 25.53 790 36.4
1958-59 33.17 30.85 930 36.3
1959-60 33.82 31.68 937 35.8
1960-61 34.13 34.58 1013 36.8
1961-62 34.69 35.66 1028 37.5
1962-63 35.69 33.21 931 37.4
1963-64 35.81 37 1033 37.1
1964-65 36.46 39.31 1078 37.3
1965-66 35.47 30.59 862 36.5
1966-67 35.25 30.44 863 37.9
1967-68 36.44 37.61 1032 38.6
1968-69 36.97 39.76 1076 38.4
1969-70 37.68 40.43 1073 38.2
1970-71 37.59 42.22 1123 38.4
1971-72 37.76 43.07 1141 37.2
1972-73 36.69 39.24 1070 39.1
1973-74 38.29 44.05 1151 38.4
1974-75 37.89 39.58 1045 38.8
1975-76 39.48 48.74 1235 38.7
1976-77 38.51 41.92 1088 38.4
1977-78 40.28 52.67 1308 40.2
1978-79 40.48 53.77 1328 41.6
1979-80 39.42 42.33 1074 42.8
1980-81 40.15 53.63 1336 40.7
1981-82 40.71 53.25 1308 41.5
1982-83 38.26 47.12 1231 42
1983-84 41.24 60.1 1457 42.7
1984-85 41.16 58.34 1417 43.7
1985-86 41.14 63.83 1552 42.9
1986-87 41.17 60.56 1471 44.1
1987-88 38.81 56.86 1465 43.6
1988-89 41.73 70.49 1689 45.8
1989-90 42.17 73.57 1745 46.1
1990-91 42.69 74.29 1740 45.5
1991-92 42.65 74.68 1751 47.3
1992-93 41.78 72.86 1744 48
1993-94 42.54 80.3 1888 48.6
1994-95 42.81 81.81 1911 49.8
1995-96 42.84 76.98 1797 50.1
1996-97 43.43 81.74 1882 .
1997-98 43.42 82.3 1895 .

World Rice Supply and Disposition

  1997-98 1998-99 1999-00 2000-01 2001-02 2001-00 1997-01

Beg.Stocks - (Million Tonnes) 115.6 122.5 128.8 142.92 137.58 -3.7 129.48
Production 386.8 394 408.4 395.63 395.71   396.11
TOTALSUPPLY 502.4 516.5 537.2 538.55 533.29 -1 525.59
TOTALUSAGE 379.9 387.8 398.52 400.97 405.86 1.2 394.61
ENDINGSTOCKS 122.5 128.8 142.92 137.58 127.44 -7.4 131.85
Stocks/Use% 32.2 33.2 35.9 34.3 31.4 -8.5 33.4
Trade 18.85 27.67 24.93 22.87 22.26 -2.7 23.32

 Rice is the second largest produced cereal in the world.

 At the beginning of the 1990s, annual production was around 350 million tons.
 By the end of the century it had reached 410 million tons.
 World production totaled 395 million tons of milled rice in 2003.
 In 2002 it was 387 million tons.

Production is geographically concentrated in Western and Easter Asia with more than 90 percent of world output.
China and India, which account for more than one-third of global population (52,3% over the 1999-2003 period),
supply over half of the world's rice. Brazil is the most important non-Asian producer, followed by the United
States. Italy ranks first in Europe.

World production has shown a significant and very steady growth, almost exclusively due to increasing production
in Western and Eastern Asia.
According to the Food and Agriculture Organization (FAO) of the U.N., 80% of the world rice production comes
from 7 countries. However, if we talk about world rice production 2009-2010, the figures below show the
worldwide rice production by countries- in fact, the top ten countries of world counted for their rice production.

Country Rice Production

China Mt: 166,417,000 (32.7%)

India Mt: 132,013,000 (26.0%)

Indonesia Mt: 52,078,832 (10.2%)

Bangladesh Mt: 38,060,000 (7.5%)

Vietnam Mt: 34,518,600 (6.8%)

Thailand Mt: 27,000,000 (5.3%)

Myanmar Mt: 24,640,000 (4.8%)

Philippines Mt: 14,031,000 (2.8%)

Brazil Mt: 10,198,900 (2.0%)

Japan Mt: 9,740,000 (1.9%)

There has been a major decline in world rice production since late 2007 due to many reasons including climatic
conditions in many top rice producing countries as well as policy decisions regarding rice export by the
governments of countries with considerable rice production.

Reasons for Low World Rice Production in 2009

Global rice prices started increasing in November 2009 after months of steadily declining since reaching an all
time high in May 2008. Problems related to rice supply in two major rice producing countries- India and the
Philippines- have been the primary reason for low world production of rice and the reversal of price trend.

Rice Martket
In September-October 2009, the Philippines got hit by two major typhoons causing damage to rice crops on
ground. Approximately one million tons of rice in storage also got damaged. India too saw the worst drought since
1972 that reduced its 2009 Kharif (wet-season) crop by at least 15 million tons from a total of 85 million tons in
the previous kharif season. There were also major floods in southern states of India Andhra Pradesh and
Karnataka. Andhra Pradesh, one of the major rice production state of India was affected first by drought and then
by flood. Thus, rice cultivation in India saw a real setback in 2009. As a result of low rice production in the two
major rice producing countries of world, the Philippines and India were in the market to purchase rice than to sell
rice.
International trade

International rice trade is estimated between 25 and 27 million tons per year, which corresponds to only 5-6
percent of world production. It makes the international rice market one of the smallest in the world compared to
other grain markets such as wheat (113 million tons) and corn (80 million tons).

Besides the traditional main exporters (Thailand, Vietnam, India and Pakistan), a relatively important but still
limited part of rice traded worldwide comes from developed countries in Mediterranean Europe and the United
States. There are two major forces behind this: new food habits in developed countries and new market niches in
developing countries.

Export and import of Rice and its policies

The chart below denotes the importance of rice production and international trading in the major exporting and
importing countries, as well as their trading policies.

Exporting Share of paddy rice Share of world Trading policies

countries world production, exports, every type
average from 1995 à of rice, average from
2002 1995 à 2001.
Thailand 4,2 % 26% Subsidy to exportsDomestic price support
through governmental purchases and buffer
stocks/seasonal storage
Vietnam 5% 15% Minimum export price fixed by the
governmentMinimum domestic price
India 22% 10% Production support. Purchases above the
minimum price. Exports tax or incentive,
depending on the rice volume available in
domestic market.
United- 1,5% 11% Cf. US rice policy
States

Importing Share of paddy rice world Share of world imports, Customs Tariff, Trading
countries production, average from every type of rice, average NPF, average 1999 policies
1998 à 2002 from 1998 à 2002.
Indonesia 8,5% 13,5% 0 0 0  
 European 0,4% 3,5% (échanges intra UE 7,7 N.A. N.A. Cf. scheme
Union exclus) 7,7% (échanges
intra UE inclus)
Brazil 1,7% 3,4% 8,7 13 14  
Bangladesh 3,4% 4,5% 0 0 0  
Japan 2,2% 2% 0 0 0 Cf. Japan
rice policy
China 32% 1% 114 114 114  

Calculation of Average Export Price:

Total quantity of rice exported and its value realized in rupees have been taken separately for basmati and non-basmati rice and then the
value 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.

We give below a yearwise representation of average export price of basmati rice and non-basmati rice in India :

Basmati Rice Non-basmati Rice

Year
Rs. Per Quintal Rs. Per Quintal
1992-1993 2,465.00 684.00
1993-1994 2,103.00 399.00
1994-1995 1,957.00 759.00
1995-1996 2,279.00 819.00
1996-1997 2,385.00 968.00
1997-1998 2,841.00 939.00
1998-1999 3,140.00 1,009.00
1999-2000 2,789.00 1,070.00
2000-2001 2,543.00 1,139.00
2001-2002 2,762.00 864.00

It is seen from the above table that export price of basmati and non- basmati rice has fluctuated significantly year after year. The reason for
fluctuation in average export price of rice is attributed to different quantity and quanlity of rice exported to different countries during different
years. A particular country may import a particular quality/grade of rice in one year and the same country may import another quality/grade
of rice during next or subsequent years. Thus, different quality and quantity of rice exported to different countries at different export price
rate may probably be the reason for fluctuation of average export price of rice in India.

The export earnings from the export of total rice (Basmati and other than Basmati) during 1998-99 accounted for 4.38%
of total national export earnings. The total earnings from Basmati Rice during 1998-99 was 1.33% of total national
export earnings. Similarly, export earnings from agricultural exports during 1998-99 was 17.81% of total national export
earnings. The percentage share of rice exports to the total agricultural exports during was 24.58% in which the share of
Basmati Rice was 7.5%. This is more clearly shown in the following Table.

Export Earnings

Item Year 1998-99

Total National Exports 1,41,603.53 Rs. crores
 Total Agricultural Exports 25,224.63 Rs. crores
Total Exports of Rice 6,200.80 Rs. crores
Total Exports of Basmati Rice 1,886.25 Rs. crores
Percentage share of Basmati to the Total Rice Exports 32.42%
Percentage share of Rice Exports to Total Agricultural Exports 24.58 %
Basmati Rice, the leading aromatic fine quality rice in world trade, fetches good export price in international market for
its three distinct quality feature: pleasant aroma, super fine grains and extreme grain elongation. Nearly two third of
Basmati Rice produced in India is exported. India accounts for about 70 percent of the world's basmati production.
Each year, India produces nearly 2.25 lakh tonnes of rice. Almost 1.25 lakh tonne is consumed by India’s residents.
The rest is left for exports.

Countries where Basmati Rice is exported:

 Saudi Arabia  Russia

 UAE  Singapore

 European Union countries  Iran

 USA  Kuwait

 Canada  Behrain

 UK  Spain

 Germany  Italy

 Australia  France

 Austria  Denmark

 Norway

According to a latest report by APEDA, till February 2006, basmati export had already crossed one million
tonne mark and stood at 11.4 lakh tonne, which has been valued at Rs 2,775 crore.

Year wise Export of Basmati Rice:

  Export of Basmati rice

Year Quantity ('000 tonnes) Value (Rs. in Crores)
1996-1997 523.16 1,247.64
1997-1998 593.32 1,685.62
1998-1999 600.60 1,866.25
2000-2001 ** 2142.00
2002-2003 710.29 **
2005-till Feb 2006 1140.00 2775.00
India is also exporting a substantial quantity of non-basmati rice to various countries in the world. However, the export
of non-basmati rice has been fluctuating year to year due to weather conditions affecting the production of non-basmati
rice. The export of non-basmati rice from India was on its peak during 1995-96 and a total quantity of 45.41 lakh metric
tons was exported to different countries in the world. Again the export crossed to 43.66 lakh metric tons during 1998-
99, but during subsequent years, the export of non-basmati rice again came down significantly due to various reasons.
Countries where Non-Basmati Rice is exported

 Bangladesh  Malaysia

 Australia  Nigeria

 Bahrain  Indonesia

 Ethiopia  Nepal

 France  Qatar

 Germany  Russia

 U.K.  South Africa

 Hong Kong  Saudi Arabia

 Korea  Somalia

 Sri-Lanka  Singapore

 Maldives  U.A.E. etc.

 Mauritius

Year wise Export of Non-Basmati Rice from India

Export of Non-Basmati Rice

Years Quantity ('000 tonnes) Value (Rs. in Crores)
1993-1994 565.19 225.46
1994-1995 448.50 340.47
1995-1996 4,540.70 3,717.41
1996-1997 1,989.04 1,924.72
1997-1998 1,795.74 1,685.37
1998-1999 4,340.18 4,334.55

Rice is an important commodity under agricultural products exported from India to various countries in the world and it
earns annually considerable amount of foreign exchange for the nation.

During 1993-94 an amount of Rs. 1,286.72 crores was realized 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 from rice. During subsequent years the export earnings declined and it was recorded Rs. 3,163.44 crores
during 2001-02.

Year Export Earnings from Total Rice (Basmati+Non-Basmati) (in Rs. crores)
1991-92 755.59
1993-94 1,286.72
1995-96 4,568.08
1998-99 6,280.76
2001-02 3,163.44
As is seen from the Table above, there was more than five-fold increase in export earnings from the export of total rice
from India during 1991-92 and 1995-96, During subsequent years after 1995-96, the export earnings from total rice
export from India 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 more than three folds during
2001-02 over 1991-92 to 2001-02.

Problems 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 :

 Indian rice is costlier in the international market as compared to

other competing countries in the world because of imposing of
various taxes on rice exports, such as Purchase Tax (on indirect
export), Market Fees, Rural Development Fund, Administrative
Charges etc. as per the state Govt. policy. In Pakistan rice meant
for exports specially the branded ones, duties are extremely low or
duty free

 Lack of proper infrastructural facilities

 The Minimum Support Price (MSP) for paddy is enhanced every

year by the govt. of India

 The production cost goes up due to increase in the cost of inputs

used for paddy cultivation. That is why when paddy is converted to
rice, it becomes costlier making it internationally uncompetitive

 Rice production meant for export purpose is having subsidy in

other countries, which reduces the cost of production and thereby
reducing the cost of rice. Therefore, the export price of rice of such
countries is more competitive in the international markets
compared to Indian rice

 Indian rice prices are inelastic due to relatively high cost of

production whereas the major rice producing nations have
decreased the price to capture the international markets

 Rice mills have not been fully modernized to ensure high milling
recovery and reduce the percentage of broken rice

 Lack of proper arrangements for production of sufficient quantity of

quality seeds needed for cultivation of rice for export purposes

 The export is also suffering much due to the competition from other
exporting countries like Thailand, Vietnam and Pakistan because
the cost of production in these competing countries is low as
compared to the cost of production in India
  Indian Basmati rice is facing aroma problem, because intensity of
aroma in traditional basmati varieties is not so high as it used to be

 Post harvest handling of produce is another important aspect.

Generally, farmers are harvesting the crop at different moisture
levels and keeping the produce at higher moisture level for a longer
period will impair the intensity of aroma

 In absence of genetically pure seed of basmati varieties, a variation

in plant height, grain size and maturity of the crop is found. This is
one of the major reasons for poor quality of basmati rice

Factors that affect Rice Prices are as follows:

 Weather: Role of weather in rice production is immense.

Temperature, rainfall and soil moisture are the important
parameters that determine the crop condition. Further, natural
calamities can also affect crops. Markets keep watch of these
developments.

 Minimum Support Price: Changes in the minimum support prices

(MSP) by the government also have immense impact on the price
of rice.

 Government policies: Exchange rates, Fiscal policies, Export

incentives and export promotion also influence price.

 Substitute Product: Availability of substitute products at cheaper

rate may lead to weakness in demand. This situation happens
especially when the main products price tends to become higher.

 Consumption: Rice consumption depends on two factors -

population and income. Lets take for example Asia. Rice is the
staple food of Asia. Low-income groups consume more rice
according to the per capita income increase. But as the income
increases, there arrives a point when the consumption starts to dip.
Income growth and reduction in population result in a low
consumption of rice.

 Seasonal cycles: Seasonal cycles are present in rice cultivation.

Price tends to be lower as harvesting progresses and produce
starts coming into the market. At the time of sowing and before
harvesting price tends to rise in view of tight supply situation.

 Demand: Import demands as well as domestic demand.

 Breakthrough in the technology may increase the productivity and

would lead to more supply. This may bring some softness in the
price.

Development of Hybrid Rice in India

During the last few years, hybrid rice technology in the tropics has entered the commercialization phase in India,
Vietnam, the Philippines, Bangladesh, and Indonesia. Research to develop hybrid rice was initiated in India way back
in 1970s but with no success. It was only in the year 1989, the research programme was accelerated and intensified
and within a period of 5 years, half a dozen rice hybrid rice varieties were developed from public and private sectors in
India. By the end of 2001, a total of 19 hybrid rice varieties were released.

However, farmer adoption of hybrid rice has been much slower than expected because of several constraints.
Improving grain and cooking quality characteristics of hybrids, incorporating resistance to some major pests and
diseases, increasing average seed yields on a large scale to reduce seed costs are the research priorities. Policy
interventions by the government for increased support, aggressive popularization of hybrids, and assured procurement
of hybrid rice at a minimum support price are needed. If these problems can be solved, hybrid rice could be cultivated
on 3-4 million hectares in India during the next decade to partially sustain food security. The government has intended
to popularize hybrids on a priority basis during the tenth five-year plan period (2002-07).

Steps to Develop Hybrid Rice

 Use new seeds every season and follow recommended seeding

rate

 Raise healthy seedlings

 Prepare the land early and properly

 Transplant seedlings then replant empty hills

 Apply the right kind and amount of fertilizer at the right time

 Maintain the right amount of water

 Manage the pests

 Harvest on time

The following strategies may be adopted to increase the productivity of rice in various states:

 Emphasis may be given on a cropping system approach rather

than a single crop development approach..
 Propagation of location specific crop production technologies in
different agro-climatic zones.
 Replacement of low potential/pest susceptible old varieties by new
high yielding varieties with promising yield potential.
 To encourage cultivation of hybrid rice through demonstrations and
making seed available to the farmers.
 Motivating the farmers to provide life saving irrigation to the crop
wherever possible during long dry spells.
 Improving soil fertility.

 Emphasis on balanced use of plant nutrients along with the

popularization of integrated plant management system.
 Use of bio-fertilizer.
  Popularization of line sowing in upland rice areas through suitable
seeding devices establishment of desired level of plant population,
easy in weed control and the application of other management
techniques.
 Encouraging the use of machines as well as bullock drawn and
hand operated implements.
 Effective control of pests and diseases by emphasizing the need
based application of pesticides.
 More emphasis on the adoption of non-monetary inputs like timely
sowing, maintaining optimum plant population, timely irrigation,
efficient use of fertilizers, plant protection measures and timely
harvesting of crop etc.

 August 17, 2010-

 Basmati Rice Export
 Basmati rice is among India’s best recognized exports
worldwide. As such, Basmati rice in India enjoys a
coveted place among all industries of India. However, this
basmati rice industry also experiences ups and downs in
a major way. Here we discuss the status of Basmati rice
export in 2009 and 2010 in India for a clearer picture.
 Basmati Rice Export in India – Report 2009
 Bamati rice industry witnessed certain major happenings
in the year 2009. The beginning of 2009 saw Indian
Basmati manufacturers, traders and exporters looking for
new export destinations with their focus on China. Export
of Basmati rice saw saw a revival of demand from west
Asian countries, specially Iran. Iran as well as Iraq
became hot export destinations for Indian basmati rice
exporters for various reasons like Iranians imported large
quantities of parboiled Pusa 1121 and with its own
farming in doldrums, Iran was increasingly dependent on
the world market to supply it long grain aromatic rice.

Saudi rice industry had controlled international basmati

rice market for about a decade now but with Iranians
coming in the forefront, its advancement was checked
which was a good news for Indian basmati rice exporters.
Iran made quick payments and displayed a good buying
capacity that was detrimental to Saudi Basmati market
and that led more companies shifting business to Iran
rather than the tough bargaining Saudi Arabia. Due to
these developments, Europe lost its premium market
status and there was no fear either from Saudi Arabia.
With the MEP rise for Basmati rice still a puzzle, India
managed to export over 2.5 million MT of Basmati rice to
Iran alone.
 All was not good in 2009. There was a controversy over
Basmati patent rights. Agricultural and Processed Food
Products Export Development Authority (APEDA) did a
lots of work to get a Geographical Indications for
'Basmati' in order to protect India in world Basmati rice
industry from its unscrupulous patenting. There was no
consensus on Indopak Joint Basmati registration efforts.
 Basmati Rice Export in India – Trends 2010
 Looking at the export reports of early 2010, India’s
Basmati rice exports this year seem to hit a record 3
million MT levels in spite of subsidy withdrawal by Saudi
Arabia, setbacks to exports in Iran and the Dubai financial
crisis.

According to the reports in January 2010, Basmati rice

export contracts during the first 9 months of fiscal year
crossed the 23 lakh MT, stating 43.75% growth over the
same period a year ago, on the back of high demand for
the Pusa 1121 variety and lower benchmark price.

Basmati rice export is calculated on the basis of the

export orders registered with the government’s agri-trade
promotion body APEDA as the data on actual shipments
come much late. According to Apeda, exporters
registered contracts for Basmati rice exports for over 23
lakh MT by the end of December against 16 lakh MT in
the year-ago period. In the entire 2008-09 period, the
export contracts for Basmati rice was only about 23 lakh
MT.
 Basmati Rice Brand Promotion with 1 cr Ad
Campaign during CWG 2010
 Common Wealth Games (CWG) 2010 and rice may not
seem to have any comparison but Basmati rice industry
of India is rejoicing over the recent announcement about
1 crore ad boost for basmati rice during CWG- 2010.
APEDA will be vetting the quotes from two shortlisted
companies for hoardings, banners and other promotion
material that will make up the best ever campaign that the
aromatic, long grained rice variety has got so far. Not only
basmati rice brands of India but the country itself can
establish its identity through this traditional product.
According to an official of the All India Rice Exporters
Association (AIREA), once the rates are decided, the deal
will be finalized. The ad campaign for Basmati rice during
CWG will be funded from the $30 million Basmati
Development Fund.

This promotional campaign is also being taken as a

 bigger effort undertaken for the Fine Foods international
exhibition in Australia, due on September 13-16 this year.
APEDA plans a superlative stall in this exhibition which
will showcase different basmati varieties, their recipes,
niche products such as organic basmati, etc. to a multi-
cultural audience comprising the world's best food
companies. This is certainly a great news for whole
Basmati rice industry of India which will get a boost in its
exports during and after 2010!
 Basmati Rice Export Challenges in 2010
 Recently Basmati rice of India which is considered the world's best known aromatic rice has faced a serious
allegation in Europe. A Hamburg-based testing firm Eurofins has alleged high levels of plant protection product
residue in the last year's basmati rice. This issue is currently being contested by Basmati rice exporters of India
with the backing of the commerce ministry. It is really a great challenge as India sells about 290,000 tonnes of
basmati rice in Europe annually.

India's population is expected to be 1.2 billion by 2012. The demand for rice in India is projected at 128 million tonnes
for the year 2012 and will require a production level of 3,000 kg/ha significantly greater than the present average yield
of 1,930 kg/ha.

Major constraints to rice production that India faces are land, water, labour and other inputs such as fertilisers,
pesticides and insecticides, and even high quality germplasm, without affecting the already degraded and stressed
agricultural environment. The problems/constraints in rice production vary from state to state and area to area.

Some of the major problems in rice cultivation

 About 78% of the farmers are small and marginal in the country
and they are poor in resource.

 The problems of flash floods, water logging/ submergence due to

poor drainage are very common in East India.

 Continuous use of traditional varieties due to the non-availability of

seeds and farmers lack of awareness about high yielding varieties.

 Low soil fertility due to soil erosion resulting in loss of plant

nutrients and moisture.

 Low and imbalanced use of fertilizers, low use efficiency of applied

fertilizers particularly in the North-Eastern and Eastern States.

 The Eastern region experiences high rainfall and severe flood

almost every year which lead to heavy loss.

 Heavy infestation of weeds and insects/pests.

  Delay in monsoon onset often results in delayed and prolong
transplanting and sub-optimum plant population (Mostly in rainfed
lowlands).

 In the years of scanty or adverse distribution of rainfall, the crop

fails owing to drought etc.

SOME INTERESTING FACTS ABOUT RICE

 More than 90 percent of the world's rice is grown and consumed in

Asia, where people typically eat rice two or three times a daily.
Rice is the staple diet of half the world's population.

 Rice farming has been traced back to around 5,000 BC.

 Hundreds of millions of the poor spend half to three fourths of their

incomes on rice and only rice.

 To plow 1 hectare of land in the traditional way, a farmer and his

water buffalo must walk 80 km.

 It takes 5,000 liters of water to produce 1 kg of irrigated rice.

 More than 140,000 varieties of cultivated rice (the grass family

Oryza sativa) are thought to exist but the exact number remains a
mystery.

 Three of the world's four most populous nations are rice-based

societies: People's Republic of China, India, and Indonesia.
Together, they have nearly 2.5 billion people almost half of the
world's population.

 The average Asian consumer eats 150 kg of rice annually

compared to the average European who eats 5 kg.

 Every year, 50 million people are added to Asia's soaring

population of 3.5 billion.

 Improved varieties are planted on three fourths of Asia's rice land

and are responsible for producing most of the continent's rice.

 Asia is home to 250 million rice farms. Most are less than 1
hectare.

 In several Asian languages the words for 'food' and 'rice' are
identical.

 Rice is thrown on newly married couples as a symbol of fertility,

luck and wealth.

 65 kilos of rice are milled annually for every person on earth.