Problems & Prospects of Rice Export from India


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 occupying first position in the international markets due to its better quality and low price. Vietnam was the world's second largest exporter of rice but currently the demand for Vietnamese rice has steeply declined in the international markets. Therefore, Indian rice exports are set to reach second place after 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 sustaining the 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 with realistic export policy. The following export policies may be taken in to account to sustain the export 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 and making Indian rice more competitive in the international markets.

  3. Survey may be conducted to identify contiguous zones for cultivation of export quality rice.

  4. Quality of rice may be maintained keeping in view the requirements of the international markets.

  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's markets.

  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 rice and 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 adopted with improvement of infrastructure facilities for promoting export.

  10. Sufficient export facilities may be made available to the exporters at Sea Port.