As global rice supply dips, prospects for Indian basmati zoom
However, it raised the hope of Indian paddy growers to get better prices as the country is a significant player in the rice export market.
NEW DELHI: The last year’s extreme weather events across the major rice-producing region of the world caused a short supply of rice in the international market, which will impact 3.5 billion rice consumers, especially in the Asia-Pacific region. However, it raised the hope of Indian paddy growers to get better prices as the country is a significant player in the rice export market.
China, the largest producer and consumer of rice, faced a shortfall of production. Its largest rice-producing region Guangxi and Guangdong province witnessed the second-highest rainfall in the past two decades, causing loss of production. Pakistan, which shares around 8 per cent in rice export market, saw an unprecedented flood that caused a heavy production loss.
Rainfall too deficit in India’s kharif season had lowered rice production. However, it managed its yearly target by increasing output in the rabi season. Pakistan’s lower production of basmati rice – an aromatic rice variety – also led to loss of clients. Now, traders are eyeing Indian basmati growers to increase the production. India contributes 80 per cent of the world’s basmati rice and the rest comes from Pakistan.
“We have kept a target to increase the basmati acreage from 4.5 to 5.5 lakh hectares to meet the demand of international market,” says Gurvinder Singh, Director Department of Agriculture Punjab. International agri-commodity analysts raised the concern that rice production this year could be at its lowest in decades. The rice shortfall in the global market would be around 9 million tonnes (mt) since 2003-2004, when deficit of rice was around 18 mt.
A commodity analyst at Fitch Solution, Charles Hart, recently said that the world will have a rice deficit in the coming days and the price of rice as high in the past decade. The shortfall of rice in the international market led to an over 25 per cent rise in international price in the past 17 months.
Rice-wise: The figures
- Global rice output: 510 million tonnes
- India’s output: 130.84 mt (25% of global production)
- Global trade: 54 million tonnes
- India’s contribution: 21.5 mt (42% of global rice trade)
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