Problems & Prospects of Rice Export from India

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 rice exporting 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 parboiled and broken rice exports separately from India are not available. Hence, export of rice from India has been divided in to two category i.e., basmati rice and non-basmati rice and the same are discussed in this chapter.

 

Basmati Rice 

The leading aromatic fine quality rices in world trade popularly known as Basmati rice is fetching good export price in the international markets for its three district quality features viz.-pleasant aroma, superfine grains and extreme grain elongation. About two third of basmati rice produced in India is exported. Basmati rice is exported to various countries in the world from India. The exports of basmati rice during 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 India were 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 and remaining quantity was exported to other countries in the world. A total quantity of 5,97,756 mts of basmati rice was exported from India during 1998-99.

During 1999-2000, these four countries remained as major basmati rice importers from India 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 Arabia declined 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 countries comprising 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. The export 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 as against 3,96,676 mts in the previous year. The percentage share of Saudi Arabia of total quantity of basmati rice exported from India during 2000-01 was 56.14 per cent as against 62.14 per cent in the previous year. Infact, total quantity exported to Saudi Arabia increased during 2000-01, but the percentage share of Saudi Arab of total quantity exported from India decreased due to increase 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 exported from 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 during 1999-2000 to 82,800 mts and 35,840 mts during 2000-01 respectively. However, the export to U.A.E. declined to 30,151 mts during 2000-01 as against 32,297 mts during previous year. A total quantity of 8,51,722 mts of basmati rice was exported from India during 2000-01, which was 33.42 per cent higher than the export of previous year. Country-wise export of basmati rice from India 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 total quantity of 45.41 lakh mts was exported to different countries in the world. Again the export crossed to 43.66 lakh mts during 1998-99, but during subsequent years, the export of non-basmati rice again came down significantly due to various reasons. The export of non-basmati rice during 1998-99 to 2000-01 are discussed below -

During 1998-99, Bangladesh, Ivory cost, Nigeria, Russia, Saudi Arabia, Somalia and South Africa were the major importers of non-basmati rice from India. Infact, more than fifty per cent of 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. Next major 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 was 1,61,817 mts of non-basmati rice, which was 3.71 per cent of total quantity of non-basmati rice exported 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 to Russia 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 to quantity 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 1999-2000 also 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 was exported 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 during 1999-2000 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 rice from India during 1999-2000. A quantity of 1,64,288 mts. of non-basmati rice was exported from India to Saudi Arabia during 1999-2000 as against 1,26,036 mts during previous year, which was 30.35 per cent higher. The percentage share of Saudi Arabia of total quantity of non-basmati rice exported 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, 1,50,590 mts, 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 during the 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 world during 1999-2000, which was 71.19 per cent less as compared to 43,65,888 mts exported during the previous year.

The major quantity of non-basmati rice was exported to Bangladesh during 2000-01 as it was during the previous year. A total quantity of non-basmati rice exported to Bangladesh during 2000-01 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 as against 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 quantity exported to these countries during 2000-01 where 20,183 mts, 1,53,841 mts, 17,410 mts, 57,768 mts, 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 non-basmati rice during 1998-99 to 2000-01 are given in Table- 6.