India’s Basmati Rice Export to Grow

Recently, India witnessed a major breakthrough in the rice industry. China has agreed to import basmati rice, non-basmati rice and various other rice varieties from India. 17 registered rice mills in India are expected to export rice to China. This is mainly being done to ensure market access for Indian products in China.

Earlier, India had sought market access for items such as non-basmati rice, pharmaceuticals and many fruits and vegetables. The export of rice is expected to grow by 10% to Rs 25,500 crore in 2017-18. Opening up of China as an export destination is positive for the Indian basmati rice industry. China is the world’s largest rice importer. However, Beijing had so far not granted market access to India’s non-basmati rice. They did this because they claimed that the rice did not meet Chinese norms on quality, health and safety. They also felt that Indian basmati rice carried a pest called Khapra beetle.

Since China has agreed to import basmati rice from India, farmers have increased basmati sowing. India and China together contribute around 40% of the global rice production. This is estimated to be 740 million tonne of paddy.

Both countries are also the largest consumers of rice, thereby restricting their participation in international trade. India is the net exporter of rice while China is the net importer.

Chinese rice is typically short in length and non-aromatic. However, with increasing income, changing lifestyle and flourishing global trade, the population in China have become open to trying different varieties of rice. They have developed a preference for basmati rice specially.

Not just India, at the moment, China is also importing rice from Thailand, Vietnam and Pakistan.

The rice which is going to be exported to China is going to come from mills in Punjab, Haryana, Uttar Pradesh and Madhya Pradesh. To export rice to China, it is mandatory that these mills are registered with the National Plant Protection Organization (NPPO). The organisation makes sure to ensure that the non-basmati consignments from India will be pest-free, safe and of good quality.

In India, non-basmati rice accounts for a majority (90-92% volume share) of the total rice production. However, around 90 per cent of the same is consumed domestically.

In volume terms, non-basmati rice export from the country stood at 6.4 million tonne in FY16, while shipments were 4 million tonne in the same period.

GovindRaj N, Ceo of Geewin Exim, Madurai. Leading Exporters & Wholesale Suppliers of Agro & Agricultural Products in India.