FY 2020-21- A Golden Year for Non-Basmati Parboiled Rice Exporters

The vulnerabilities caused by the COVID-19 crises have hurt almost all the sectors. It has left them with no choice other than to innovate and make optimum use of the available resources. From education to tourism, the pandemic has caused irreparable damage to mankind.

This dreadful situation and increasing coronavirus cases have led to an increase in demand and shortage of supply for rice. The Indian agriculture sector is witnessing a bullish trend. It is majorly due to the disruption in the supply of Agri Products in the major producing countries. There is a rise in the prices of Non-basmati parboiled rice because of the increase in demand for export.

Current Scenario in Agriculture

The pandemic has affected the agriculture sector positively. There is a positive growth in the last 3 sectors, with 3.9% growth in the third quarter. The price of wheat has gone up by 48% since June 2020 and that of corn has risen over 91% in the international market. USDA (US Department of Agriculture) has projected India’s export to be highest in the last 6 years, i.e., 18 lakh tonnes. 

India has performed exceedingly well in terms of rice export. The prices of rice have gone up by approximately 110% in the international market. USDA has projected that India will hit a fresh record for the 5th consecutive year. It is because the demand and supply for both wheat and rice is increasing continuously. 

The FY 2020-21 has proved to be a golden year for the non-basmati parboiled rice exporters. The non-basmati rice export increased by 122.61% i.e., from Rs 10,286 crore in the last year to Rs 22,856 crore this year. 

Reasons for increase in demand

India is the largest producer of rice and attracted huge demand from the international market. It is because of the hard work of the farmers that we were able to produce and supply high-quality rice during these unprecedented times. Other exporters, like Thailand and Vietnam stopped the supplies that led to the increase in demand from India.

The floods in Bangladesh led to massive damage to the rice crops. Because of this Bangladesh was also not in a position to export rice. 

There is new demand from countries like Malaysia and the Philippines. This is another factor for the increase in the export of rice from India.

All these factors have worked to the advantage of India. It has helped to produce good quality rice and export it to other countries.