• India stands first in rice area and second in rice production.• India contributes 21.5% of global rice production.• Rice is the important cereal food crops which contributes 43% of the total food grains production in India.• The demand for Indian rice in Foreign countries is quite demandable
WHEN IT IS SUITABLE TO CULTIVATE RICE• Rice is grown under a damp warm climate.• For cultivation of rice the temperature should be minimum 20ºC to 37.7ºC.• Rice is a semi-aquatic crops, grows best in submerged, waterlogged condition.
Types of riceBASMATI• This is world famous & it is the most popular rice in India.• The name itself stated that ‘The Fragrant type’ (in Sanskrit).• These rice have long grains and they do not stick to each other when cooked.• It has a lovely fragrance and is available in brown and white color.
AMBEMOHAR RICE• This rice is grown on a large scale in Maharashtra.• When cooked, it gives the fragrance of blossoms of Mango.• This rice is preferred the most as it is soft & easy to chew.
DUBRAJ RICE• It is one of the popular rice types in India which is very much popular in Madhya Pradesh and Chhattisgarh.• It is an aromatic rice and its rice grain is available in sizes from short to medium.
Factors influencing the price of riceWEATHER• Role of weather in rice production is immense.• Temperature, rainfall land soil moisture are the important parameters that determine the crop condition.• Further, natural calamities can also affect crops. Markets keep watch of these developments.
MINIMUM SUPPORT RICE Changes in the minimum support prices (MSP) by the government also have immense impact on the price of rice.SUBSTITUTE PRODUCT Availability of substitute products at cheaper rate may lead to weakness in demand. This situation happens especially when the main products price tends to become higher.
CONSUMPTION Rice consumption depends on two factors - population and income. For example, rice is the staple food of Asia. Low-income groups consume more rice according to the per capita income increase. But as the income increases, there arrives a point when the consumption starts to dip. Income growth hand reduction in population result in a low consumption of riceDEMAND Import demands as well as domestic demand influences the price of rice in domestic as well as international market
HOW RICE IS EXPORTEDThere are four distinct steps for exporting of rice1. To determine exactly what and how much you intend to export.2. To determine what your rice equivalent grade is i.e. comparing the other grades of rice of different countries as per the needs of the people.3. To determine your method of payment and locate a supplier.4. To determine the required volume of rice that need to be exported.
PROBLEM OF RICE EXPORT IN INDIA• India is facing stiff competition in the world markets for export of rice. Besides, there are many domestic problems for rice exporters.• As per the state Govt. policy, various taxes are imposed on rice exports, such as the states are imposing Purchase Tax (on indirect export), Market Fees, Rural Development Fund, Administrative Charges etc. These taxes are rendering the pricing of rice internationally in competitive.• There is lack of proper infrastructural facilities. Many times exporters, when they carry their stock to sea port and if the stock is not loaded due to some reason or the other, exporters do not find go down or proper place to store their stocks properly and safely at sea port, exporters have to face lot of difficulties, besides, it adds additional expenditure to the exporters.
EXPORT DOCUMENT• INTRODUCTION An exporter without any commercial contract is completely exposed of foreign exchange risks that arises due to the probability of an adverse change in exchange rates. Therefore, it becomes important for the exporter to gain some knowledge about the foreign exchange rates, quoting of exchange rates. Export from India required special document depending upon the type of product and destination to be exported. Export Documents not only gives detail about the product and its destination port but are also used for the purpose of taxation and quality control inspection certification.
• SHIPPING BILL/BILL OF EXPORT Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. A shipping bill is issued by the shipping agent and represents some kind of certificate for all parties, included ships owner, seller, buyer and some other parties. For each one represents a kind of certificate document. Documents Required for Post Parcel Customs Clearance. In case of Post Parcel, no Shipping Bill is required. The relevant documents are mentioned below:
CUSTOMS DECLARATION FORM DISPATCH NOTE COMMERCIAL INVOICE LIGALISED/VISAED INVOICE CERTIFIED INVOICE PACKING LIST CERTIFICATE OF INSPECTION BLACK LIST CERTIFICATE MANUFACTURE’S CERTIFICATE CERTIFICATE OF SHIPMENT HEALTH/VETINARY/SANITARY CERTIFICATE CERTIFICATE OF CONDITION SHIPPING ORDER CART/LORRY TICKET SHUT OUT ADVICE SHORT SHIPMENT FORM
PRODUCTION OF RICE IN INDIA25020015010050 0 2000-01 2001-02 2002-03 2003-04 2004-05 2006-07 Production (in mn tones ) Consumption (in kg/hectare)
ROLE OF RICE IN EXPORT EARNING BASMATI RICE Rice plays an important role in the export earnings of the country.Export value realized from the export of Basmati rice during 1993-94 wasRs. 1,061.26 crores and it declined during the subsequent two years.During 1996-97, export earnings from Basmati rice was Rs. 1,247.64crores, which increased during subsequent years and it was recorded Rs.1,876.91 crores during 1998-99 and again declined during 1999-2000 andreached maximum to Rs. 2,165.96 crores during 2000-01, but againdecreased to Rs. 1,839.08 crores during 2001-02.Thus, there was a considerable fluctuation in the export earnings ofbasmati rice during the last nine years, i.e., 1993-94 to 2001-02.
OTHER RICE Other rice is next to Basmati rice, which is exported from India to manycountries in the world. The export value of other rice also contributesconsiderable share in the export earnings of total agricultural products.Export value realized from the export of other rice during 1993-94 was Rs.225.46 crores and it increased during the subsequent years up to 2001-02.During 1994-95 the export value of other rice was Rs. 340.47 crores and itincreased to Rs. 3,717.41 crores during 1995-96 but it decreased to Rs.1,924.72 crores and Rs. 1,685.38 crores during 1996-97 and 1997-98.However, the export earnings from the export of other rice during 1998-99again increased to Rs. 4,403.85 crores, which was an all time high andagain declined to Rs. 1,345.58 crores, Rs. 777.26 crores and Rs. 1,324.36crores during 1999-2000, 2000-01 and 2001-02 respectively.
• EXPORT SUBSIDIES Export subsidy reduction commitments have been made under the Uruguay Round Agreement on Agriculture (URAA) by Colombia, Indonesia, Uruguay, the EC and the United States. The actual use of export subsidies has fallen short of the aggregate ceiling, although information is difficult to get even from the WTO. Export subsidies have been used by India since mid-2001 to promote exports of rice held by the government. Food Corporation of India. According to the WTO, India is not eligible to use export subsidies on rice, but the country claims that under the URAA (Article 9-4) the country is exempt from commitments on export subsidies for marketing, processing and transportation. While this position is questionable, the country has to date not been challenged on that account by other countries in the WTO.
RESTRICTION ON EXPORTS The Commerce Ministry’s decision permitting export of up to 10 lakh tones (lt) of rice to African countries through parastatals is subject to the shipments containing a minimum 25 per cent broken content.“The rice to be exported shall be with a minimum of 25 per cent of broken”, the Directorate General of Foreign Trade’s (DGFT) notification, dated May 6, has said.“On the other hand, you have a condition of a minimum export price (MEP) of $1,100 a tone below which no basmati rice can be shipped out. And now, the same Commerce ministry is saying that you can export non- basmati rice only if it has a minimum 25 per cent broken, which corresponds to the most commonly consumed grades here”, said Mr. Vijay Sethia, former President of the All-India Rice Exporters’ Association(AIREA).
EXPORT OF BASMATI RICE FROM INDIA Basmati Rice, the leading aromatic fine quality rice in worldtrade, fetches good export price in international market for its threedistinct quality feature: pleasant aroma, super fine grains and extremegrain elongation.Nearly two third of Basmati Rice produced in India is exported. Indiaaccounts for about 70 percent of the worlds basmati production. Eachyear, India produces nearly 2.25 lakh tones of rice.Almost1.25 lakh tone is consumed by India’s residents. The rest is left forexports.The countries were Basmati rice is exported include SaudiArabia, UAE, European Unioncountries, USA, UK, Germany, Australia, Austria, Russia, Singapore, Iran, Kuwait, Bahrain, Spain, Italy, France, Denmark and Norway.
Export of other rice from India India is also exporting a substantial quantity of other rice to variouscountries in the world.However, the export of non-basmati rice has been fluctuating year to yeardue to weather conditions affecting the production of non-basmati rice.The export of other rice from India was on its peak during2004-05 and atotal quantity of 45.41 lakh metric tons was exported to differentcountries in the world.Again the export crossed to43.66 lakh metric tons during 2006-07, butduring subsequent years, the export of non-basmati rice again came downsignificantly due to various reasons.The countries where other Rice is exported include SaudiArabia, Bangladesh, Australia, Bahrain, Ethiopia, Hong Kong, Korea, Sri-Lanka, Maldives, Mauritius, U.A.E., Malaysia, Qatar, Nepal, Indonesia, Somalia, Singapore, etc.
conclusion India is one of the richest countries in the world in terms of possessing tremendous diversity in rice varieties. There are different varieties of rice-depending on the weather, soil, structure, characteristics and purposes. The “multi functionality” of agriculture in terms of environmental, social and cultural concerns is being used to defend the permanence of blue and green box payments. In developed countries where rice is a non-marginal crop, the elimination of blue or green box support would considerably impair the sector.
Rice production sites are often the natural habitat of a wide variety of birds and plants. Water management in rice lands ensures that the soil desalination process essential to the maintenance of land fertility takes place. Environmental concerns are consequently a frequently used weapon in defense of the sector. Rice is a major food staple and a mainstay for the rural population and their food security. It is mainly cultivated by small farmers in holdings of less than 1 half. Rice is a major food staple and a mainstay for the rural population and their food security. It is mainly cultivated by small farmers in holdings of less than 1 half.
AGENCIES EXPORTING RICE 1. SHRIL: An ISO 9001-2000 Certified Company dealing in Indian long grain white basmati rice, brown basmati rice. 2. SRI GAJANAN AGRO MILL (INDIA) PVt ltd: NIZAMABAD, ANDHRAPRADESH: Since last 50 years in the processing of high quality premium grade non basmati rice and broken rice. 3. TRISTAR OVERSEAS, New Delhi, Delhi: Exporter of variety of basmati rice like traditional basmati rice, pure basmati rice, sharbati rice, shabnam basmati rice, parmal basmati rice 4. USA RICE: USA Rice Federation is a national association representing producers, millers and allied businesses advancing the use and consumption of U.S. 5. BASMATI ASSOCIATES, Navi Mumbai, and Maharashtra: Basmati rice traders and ex porters and provides the premium brand of basmati from the company Jagat Agro in Mumbai.