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India sets new landmark in Rice Exports

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Exports 17 million tons of Non-Basmati rice in FY22

India’s non-basmati rice exports set a new land mark by exporting 17 million tons in FY 22 for a total export value of USD 6115 million. This is said to be a 109% increase from the USD 2925 million done in FY 2013-14. 

“The overall volume of rice exports has almost “doubled” in the past few years, which is a good augury for the rice exporting sector” said Mr  B.V. Krishna Rao, President of the Rice Exporters Association of India (TREAI) speaking to Vizag Industrial Scan.

Adding that India continues to be the second largest rice producer in the world after China he noted Andhra Pradesh to play a leading role in terms of rice exports.

‘30-35% of India’s total non-basmati rice exports came from the state of Andhra Pradesh’ said Mr Krishna Rao.

As per the second Advance Estimates for 2021-22, the total production of Rice during 2021-22 is estimated at record 127.93 million tonnes, which is higher by 11.49 million tonnes than the last five years’ average production of 116.44 million tonnes.

While India exported rice to the tune of 5.5 million tons in FY 2017-18, it reached 8 million tons in 2019-20 and it further touched to 13 million tons in the year 2020-21 as per data.

And with good monsoon predicted for the current crop year Industry pundits project that, the export volume of rice may further go up reaching a whopping 22 million tons.

Exported to 150 countries

While rice export is being carried out through a network of over 50 sea ports spread across the country, Andhra Pradesh ports i.e. Krishnapatnam, Kakinada, and Vizag hold an important place in it.  ‘Kakinada alone exported about 4.5 MTPA of rice in FY 22 out of the total export of 17 million tons’ highlighted Mr Krishna Rao

Appeal to waive the 2% market cess

The rice export sector has however appealed to the Andhra Pradesh government to do away and waive the 2% market cess being levied on rice exports, the industry players cited the case of Madhya Pradesh, which has done away with market cess levied on wheat exports, thus benefiting the export sector.

“If a similar move is made  both in Andhra Pradesh and Telangana, the rice export sector would stand to benefit a lot and touch a new growth graph” say Industry players

Labour shortage, a major problem

Mr Raghuvulu,  Chairman,  Coconada Chamber of Commerce speaking to Vizag Industrial Scan flagged the labour shortage problem afflicting the sector as a major logistical bottleneck in ports such as Kakinada in Andhra Pradesh.

“We are faced with an acute labour shortage and we have to transport and accommodate an additional 4,000 labour force to the vicinity of the port to carry out a minimum of 7 rakes per day.  As we do so, we are faced with the problem of accommodating the migrant labour, and the move has also faced stiff opposition from the locals due to various reasons” said Mr Raghuvulu.

He thus has urged the port authorities to lease out some land in order to accommodate the labour force for temporary accommodation could be erected to house them. ‘This will end the labour shortage problem for us’ said Mr Raghavulu.

“The Kakinada port authorities have promised to take a sympathetic view and look into the matter, which would address the labour shortage problem we are facing now and lead to the impressive growth of the sector” he said.

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