139  

CHPATER-5

EXPORT, IMPORT AND WHOLESALE PRICE OF RICE IN INDIA

5.1. FACTUAL DETAILS:

The policy related to exports and imports of rice and wheat operates within

the framework of food security and food management policy. From a situation of

heavy dependence on imports of basic staple food in the middle of 1960s, India

steered itself to a comfortable situation during the 1990s. The supply-demand

balance became visible since the first half of 1980s, when the net imports came

down to less than one (0.88) million tonnes. The annual average of net imports of

cereals decreased to 0.2 million tonnes in the second half of 1980s. Considering

the average for a five year period, India emerged as net exporter of cereals in the

early 1990s. Between 1990-91 and 1994-95, India exported an average of 0.5

million tonnes of cereals (mainly rice and wheat). Net exports went up to 2.6

million tonnes per year during 1995-2000, and further to 6.4 million tonnes during

2000-2005. As already mentioned, the duty on imports of rice and wheat was

reduced to zero during the crisis period, and even beyond, when India was reeling

under high food inflation. This was in a situation of bound rates of 100 per cent on

wheat and 70 per cent on semi-milled or wholly milled rice (polished or

unpolished).

After implementation of WTO agreement in 1993, agricultural exports

have undergone significant changes in its content and composition. The

availability of cheap labour and land establish the cases of export initiatives and

diverse agro-climatic conditions give excellent base for the agricultural

production (Brahm and Sharma, 1996). The exports and imports of rice and

wheat for the last 10 years show that India imported about 7.9 million tonnes of

wheat during 2006-08. However, taking the five year average from 2006-07 to

2010-11, India has been net exporter of rice plus wheat, mainly owing to rice

exports, even though the exports of rice went down considerably. During 2008-09,

62 per cent of rice exported from India was basmati rice. The share of basmati rice

in total rice exports went up to 94 per cent in 2009-10 and further to 96 per cent in

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2010-11. As mentioned in the preceding section, during the last three years,

exports of non-basmati rice were restricted and basmati rice export was allowed

only at a price higher.

Indian Basmati is long grain aromatic rice with a unique, pleasing and

appetizing aroma. It is the aroma that gives basmati its novel characteristics

unmatched by any other rice grain anywhere else in the world. The Punjab,

Haryana, Uttaranchal, Western Uttar Pradesh and the southern part. The climate,

soil and water in this region combine to give Indian Basmati its unique qualities

and characteristics. Its unique quality and characteristics cannot be replicated if

grown anywhere else. In more ways than one, Basmati is nature's gift to the

Indian subcontinent and commands the highest price amongst all the rice varieties

in India. This rice has high analyse content and a firm almost dry texture when

properly cooked. The best Indian Basmati is aged for at least one year to increase

firmness, quality and elongation after cooking. Because of its quality

characteristics, basmati rice fetches a higher price in the international market.

FAO study by Conforti, (2004) indicated a considerable degree of linkage

between India’s domestic and world reference prices. His estimates indicated

evidence of long run equilibrium in the spatial transmission between the domestic

and the world reference prices of wheat, maize, cassava, milk powder, and to

some extent rice. However, fluctuations in world market prices were in general

transmitted to countries export unit values, but not to producer prices due to

government intervention (Hazellet al16., 1990).

Futures trading in rice were suspended by the Forward Market

Commission. On October 9, 2007, a ban on export of non-basmati rice was

imposed (except some organic rice and for food aid). On October 25, 2007: Ban

on export of rice was revised and on export above the Minimum Export Prices

(MEP) of US$ 425 per tonne (F.O.B.) was permitted. In December 2007: the

Minimum Export Prices (MEP) for non-basmati rice exports was raised to US$

500 per tonne. Export of basmati rice was allowed but Minimum Export Prices

(MEP) was imposed at US$ 900 per tonne, to prevent non-basmati rice being

labelled as basmati rice for export. In March 2008, import duty on semi-milled or

141  

wholly milled rice was reduced to zero, to augment rice supplies in the domestic

market. In March 2008, Minimum Export Prices (MEPs) for both basmati and

non-basmati rice were further raised. On March 17, 2008, basmati rice exports

were restricted to only two ports (Mundra and Pipavav). The imports of wheat on

government account continued and till March 2008 aggregated to 1.8 million

tonnes (since April 2007). Export of non-basmati rice was permitted on

diplomatic and humanitarian considerations. In February 2011, the government

allowed the export of 1,50,000 tonnes of three premium non-basmati rice

varieties. India exported 2.3 million tonnes of rice, which was mainly basmati

rice, during the year. Depreciation of Indian rupee also helped in increasing

exports. Indian exports reportedly pulled down global prices of rice. The futures

trading continued to remain banned.

At country level, agricultural sector contributed 10.57 per cent of national

exports in 2009-10. India’s agricultural exports have increased from Rs. 6,013

crores in 1990-91 to Rs. 89341.33 crores in 2009-10. Rice, tea, coffee, oil-seeds,

fruits and vegetables, cashew and sugar are the major agricultural exports of India

and have a major the share in world. At the same time, India’s agricultural imports

also have increased from Rs. 1,206 crores in 1990-91 to Rs. 59,528crores in 2009-

10 (accounts for 4.37 per cent in total India’s imports).

Broadly, the present study has been divided into four sections. First

section, understanding the structure of India’s major agricultural exports and

imports in comparison with over the decade. Second consistency of India's Export

Performance in Rice, third section, Impact of Wholesale Prices on Rice in India.

Final section, the existing rice export, import and wholesale prices

competitiveness suggestions and improving the trade competitiveness will be

discussed.

5.2. Trend Analysis in Agricultural Export and Import in India:

At the time of the Uruguay Round negotiations, Indian agriculture was

reasonably competitive (Gulati and Kelley 1999; Gulati. et, al., 1994), so trade

liberalization would not necessarily be expected to have an adverse impact.

Commodities such as rice and wheat, India‘s major staples, turned out to be

142  

efficient import substitutes and export competitive for several years. The only

major uncompetitive commodity seemed to be oilseeds and edible oils, which are

produced at high cost in India. Milk was also of concern, although trends in the

1990s were encouraging (Sharma and Gulati 2002).

Table-5.1 Percentage share of Agriculture exports and imports in the total exports and imports of India. (Value in Rupees in Crores)

Source: Director General of Commercial Intelligence & Statistics, Ministry of commerce, Kolkata.

Table-5.1 present share of agricultural Commodities in India’s Imports and

Exports from 1990-91 to 2009-10. The share of agricultural commodities in India’s

total imports has indicated a trend of fluctuation during the two decades in the post

reform period from 1990-91 to 2009-10. Imports of agricultural commodities

fluctuated at a lower level between 1990-91 to 1995-96 a higher of agricultural

Year

% share of agriculture Imports to Total National Imports

% share of agriculture Exports to Total National Exports

1990-91 2.79 18.49

1991-92 3.09 17.80

1992-93 4.54 16.84

1993-94 3.18 18.05

1994-95 6.60 15.99

1995-96 4.80 19.18

1996-97 4.76 20.33

1997-98 5.70 19.09

1998-99 8.17 18.25

1999-00 7.45 15.91

2000-01 5.29 14.23

2001-02 6.63 14.22

2002-03 5.92 13.58

2003-04 6.12 12.70

2004-05 4.55 11.08

2005-06 3.26 10.78

2006-07 3.53 10.92

2007-08 2.95 12.05

2008-09 2.71 10.22

2009-10 4.38 10.59

Co-efficient Variation (CV)

1990-91 to 1999-00 CV 79.56 47.00

2000-01 to 2009-10 CV 50.70 43.99

Compound annual growth rate (CAGR)

1990-91 to 1999-00 CAGR 33.79 18.96

2000-01 to 2009-10 CAGR 15.38 15.32

143  

imports in total imports is observed between 1996-97 to 2003-04 but here too a

trend of fluctuations is found. However, a declining trend of the share of agricultural

imports in total imports of India is found from 2004-05 to 2009-10.

The share of agricultural exports in total exports from India has been high

during the first decade during the reform era from 1990-91 to 1999-2000 though

there are marginal fluctuations during the decade. The share of agricultural exports

in Indias total export has indicated an almost continuous decline during the decade

from 2000-01 to 2009-10. There is need for enhancing the exports of agricultural

commodities from India. India is one of the major exporter of agricultural

commodities in the world. An all out effort must be made to boost exports,

enhanced exports are needed to boost not only foreign exchange but also for

ensuring better price for producers of agricultural commodities.

5.3. Consistency of India's Export Performance In Rice: Table-5.2 Percentage Share of rice export of agriculture export and rice production

of rice export in India (Value in Rupees in Crores, Produ in million tonnes)

Year Agriculture

Export Rice

Export

% Share of rice

Export in Agri export of India

Rice Produ

Rice Export

% Share of rice

Product in rice export of India

1990-91 6019 462 7.67 74.29 461.6 16.09

1991-92 7895 756 9.57 74.68 755.6 9.88

1992-93 9082 976 10.74 72.86 975.6 7.47

1993-94 12633 1287 10.19 80.30 1286.7 6.24

1994-95 13269 1206 9.09 81.81 1205.8 6.78

1995-96 20344 4568 22.45 76.98 4568.1 1.69

1996-97 24363 3172 13.02 81.73 3172.4 2.58

1997-98 24626 3371 13.69 82.54 3371 2.45

1998-99 25387 6281 24.74 86.08 6280.8 1.37

1999-00 24301 3126 12.86 89.68 3125.9 2.87

2000-01 27288 2932 10.75 84.98 2932.2 2.90

2001-02 28144 3174 11.28 93.34 3174.1 2.94

2002-03 32473 5831 17.96 71.82 5831.2 1.23

2003-04 34616 4168 12.04 88.53 4168 2.12

2004-05 38078 6769 17.78 83.13 6768.9 1.23

2005-06 45220 6221 13.76 91.79 6221.3 1.48

2006-07 57392 7036 12.26 93.35 7035.9 1.33

2007-08 74209 11755 15.84 96.69 11754.6 0.82

2008-09 80649 11164 13.84 99.18 11164.4 0.89

2009-10 84136 11255 13.38 89.13 11254.9 0.79

2010-11 112522 10803 9.60 95.32 10802.83 0.88

144  

Co-efficient of Variation (CV)

1990-91 to 1999-00 CV 46.38 75.79 -- 6.77 75.79 --

2000-01 to 2009-10 CV 44.26 47.24 -- 8.80 47.24 --

Compound Annual Growth Rate (CAGR)1990-91 to 1999-00

CAGR 18.58 29.20 -- 2.02 29.20 --

2000-01 to 2009-10 CAGR

15.18 17.00 -- 1.59 17.00 --

Source: www.calculated agricoop.com

Table-5.2 provides the detail share of rice exports in agricultural exports and

rice exports as percentage of rice production. The share of rice exports in total

exports of agricultural commodities has gone up during the first five years that is

during 1990s. The share of rice exports reached the peak of 24.74 per cent in

1998-99. However, the subsequent period has witnessed fluctuating trend with a

lower share of rice exports in total exports of agricultural commodities and

reached the lowest at 9.60 per cent in 2010-2011. The share of rice exports in

India’s total rice production has indicated a dismal picture. The share has slipped

down from 16.09 per cent in 1990-91 to 2.90 per cent in 2000-01 and further to

0.88 per cent in 2010-11. The above trend is reflected in the downward movement

of co-efficient of variation (CV) and the compound annual growth rate (CAGR).

The details indicate a discouraging performance of rice exports during the last two

decades. It is necessary for the government to boost rice exports through proper

incentives and though adequate market study in the major rice importing countries

since India as a major rice exporter has faced severe competition from some of the

Asian neighbours.

145  

Table-5.3 Percentage Share of Export in Basmati and Non-Basmati rice of export in total rice India (Quantity: in ' 000 Tonne; Value: Rs in Crore)

Year/ Commodities Basmati Non-Basmati Total Rice

Qnty Value Qnty Value Qnty Value

2008-2009 62.55 84.89 37.45 15.11 100.00 100.00

2009-2010 93.53 96.75 6.47 3.25 100.00 100.00

2010-2011 88.47 91.33 4017.45 1.92 100.00 100.00

2011-2012 24548.34 36.18 17233.23 11.62 100.00 100.00

Co-efficient of Variation (CV)

2008-09 to 2011-12 50.22 990.80 55.40 104.37 148.45 227.38

Source: www.calculated agricoop.com, GOI.

Table-5.3 provides the detail share of basmati and non-basmati rice exports

in total rice exports from India. Basmati rice is a high value variety of rice which

has greater demand in export market with better quality and taste. Basmati rice

gets higher export earnings compared to non-basmati rice. The share of basmati

rice in total export of rice is higher both in quantity as well as value compared to

non-basmati rice.

Rice (Basmati) Exports from India

Rice is one of the major agricultural exports from India. Basmati rice is in

great demand in many of the developed countries and in the Gulf region. India

with natural advantages of soil and climate has been a major exporter of this high

value agricultural product. The following table provides the details of Basmati

rice exports during the decade from 2001-02 to 2010-11.

146  

Table-5.4 Exports of Basmati Rice from India

Year Quantity (‘000 tonnes) Value (Rs. crore)

2001-02 667.07 1842.77

2002-03 708.79 2058.47

2003-04 771.49 1993.05

2004-05 1163.00 2823.90

2005-06 1166.57 3043.10

2006-07 1045.73 2792.81

2007-08 1181.66 4334.77

2008-09 1556.38 9476.85

2009-10 2015.91 10838.86

2010-11 2186.44 10581.52

Source: Ministry of Agriculture and Co-operation, GOI.

Source: Table-5.4

Exports of Basmati rice has shown a trend of continuous increase during

the first half of the first decade from 667.07 thousand tonnes in 2001-02 to

1166.57 thousand tonnes in 2005-06. A small decline in exports to 1045.73

thousand tonnes in 2006-07 is followed by a revival of exports to 1181.66

thousand tonnes in 2007-08. A continuous rise is observed thereafter till the end

Fig. 4. : Exports of Basmati Rice from India

1842.77 2058.47 1993.05

2823.9 3043.1 2792.81

4334.77

9476.85

10838.86 10581.52 

0

2000 

4000 

6000 

8000 

10000

12000

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Year

Value (Rs. in crore) 

147  

of the decade. Exports rose to 1556.38 thousand tonnes in 2008-09 and further to

2015.91 thousand tonnes in 2009-10. Exports reached the maximum volume of

2186.44 thousand tonnes by the end of decade in 2010-11.

The exports value of Basmati rice has been at a rising trend during the

decade with minor fluctuations. Exports registered an increase from Rs. 1842.77

crore in 2001-02 to Rs. 3043.10 crore in 2005-06. With a small decline to Rs.

2792.81 crore in 2006-07 the export earnings have maintained an upward trend.

The exports earnings of Basmati rice rose to Rs. 4334.77 crore in 2007-08 to a

maximum of Rs. 10581.52 crore in 2010-11. There is a good demand for India’s

Basmati rice in Europe, USA and the Gulf countries.

Export of Rice (Non-Bastmati) from India

Non-Basmati rice is one of the largest selling agricultural products from

India. India is a major competitor in the world’s export market for rice. Rice

exports from India during a period of ten years from 2001-02 to 2010-11 indicate

an upward trend with some fluctuations. The following table provides the details.

Table-5.5 Exports of Rice (Non-Basmati) from India

Year Quantity (‘000 tonnes) Value (Rs. crore)

2001-02 1541.49 1331.37

2002-03 4259.08 3772.77

2003-04 2640.57 2174.94

2004-05 3615.10 3945.02

2005-06 2921.60 3178.17

2006-07 3702.22 4243.10

2007-08 5314.18 7396.23

2008-09 949.99 1691.43

2009-10 139.37 414.76

2010-11 96.08 220.26

Source: Ministry of Agriculture and Co-operation, GOI.

148  

Source: Table-5.5

India has been exporting non-Basmati rice to many countries in the world

from the beginning of its trade in agricultural commodities. Non-Basmati rice

exports have been facing competition from some of the Asian neighbours. Hence

there is a fluctuating trend in both volume and value of exports of this variety of

rice during the decade. Exports volume of non-Basmati rice rose from 1541.49

thousand tonnes in 2001-02 to 4259.08 thousand tonnes in 2002-03. A sharp

decline in export to 2460.57 thousand tonnes was witnessed in 2003-04 with a

revival to 3615.10 thousand tonnes in 2004-05. This fluctuating trend in the

volume of exports of non-Basmati rice was further observed as exports declined to

a low of 2921.60 thousand tonnes in 2005-06 and a good revival to 3702.22

thousand tonnes in 2006-07 and further to a maximum of 5314.18 thousand

tonnes in 2007-08. A continuous decline in exports of non-Basmati rice is

observed during the next 3 years. Exports declined to a low of 949.99 thousand

tonnes in 2008-08 and further to 139.37 thousand tonnes in 2009-10 before

reaching the lowest level of 96.08 thousand tonnes in 2010-11.

Fig. 5 : Exports of Rice (Non-Basmati) from India

1331.37 

3772.77

2174.94

3945.02

3178.17

4243.1

7396.23

1691.43 

414.76220.26

0

1000

2000

3000

4000

5000

6000

7000

8000

2001-02  2002-03  2003-04 2004-05 2005-06 2006-07 2007-08 2008-09  2009-10  2010-11

Year

Value (Rs. in crore) 

149  

The value of export of non-Basmati rice from India has fluctuated during

the corresponding period. Export earnings rose from Rs. 1331.37 crore in 2001-02

to Rs. 3945.02 crore in 2004-05 with a decline to Rs. 3178.17 crore in 2005-06,

exports reached the maximum of Rs. 7396.23 crore in 2007-08. There is a

continuous decline in exports earnings reaching the lowest level of Rs. 220.26

crore in 2010-11.

Table-5.6 Percentage Share of Rice Export of Total Food Grains and Agriculture Export National Exports of India (Qnty: 000 tonne’s)

Source: www.calculated agricoop.com, GOI.

Table-5.6 provides the details share of rice exports in total food grains and

agricultural export in India. There is increasing trend of share of rice exports in total food

grains during the first decade from 1990-91 to 1999-2000. Rice exports has high share in

Year Rice Total Food

Grains

% Share of rice export

of total food grains export in India

Agri Export

Total National Export

% Agri Exports to

total exports

1990-91 504.99 666.6 75.76 6012.76 32527.28 18.49

1991-92 678.24 1376.45 49.27 7838.13 44041.81 17.8

1992-93 580.4 668.52 86.82 9040.3 53688.26 16.84

1993-94 767.67 936.41 81.98 12586.55 69748.85 18.05

1994-95 890.57 1112.17 80.07 13222.76 82673.4 15.99

1995-96 4914.01 5636.29 87.19 20397.74 106353.4 19.18

1996-97 2511.98 3783.72 66.39 24161.29 118817.3 20.33

1997-98 2389.86 2573.96 92.85 24843.45 130100.6 19.09

1998-99 4963.59 5078.72 97.73 25510.64 139751.8 18.25

1999-00 1896.12 2098.41 90.36 25313.66 159095.2 15.91

2000-01 1534.48 2637.36 58.18 28657.37 201356.5 14.23

2001-02 2210.98 5156.55 42.88 29728.61 209018 14.22

2002-03 5057.43 8979.51 56.32 34653.94 255137.3 13.58

2003-04 3412.05 8223.49 41.49 37266.52 293366.8 12.7

2004-05 4796.66 8185.39 58.60 41602.65 375339.5 11.08

2005-06 4088.06 5820.59 70.23 49216.96 456417.9 10.78

2006-07 3379.46 3455.79 97.79 62411.42 571779.3 10.92

2007-08 2670.86 1090.99 244.81 79039.72 655863.5 12.05

2008-09 1962.26 -1273.81 -154.05 85951.67 840755.1 10.22

2009-10 1253.66 -3638.61 -34.45 89341.33 845533.6 10.57

Co-efficient of Variation (CV) 1990-91 to

1999-00 85.29 76.97 17.63 47.01 46.42 7.88 2000-01 to

2009-10 4.38 10.96 20.72 50.25 58.47 12.98

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food grains export varying from 49.27 per cent in 1991-92 to 97.73 per cent in 1998-99.

There is a decline in the subsequent years from 2000-01 to 2009-10. A similar trend of

comparatively higher percentage of rice export in total exports is seen during the first

decade from 1990-91 to 1999-2000. A relatively lower percentage of rice exports in the

total exports from India is observed during the next decade from 2000-01 to 2009-10.

The declining trend of rice exports needs to be handled properly and all steps need to be

taken to enhance rice exports.

Table-5.7 Percentage Share of Rice Imports in the total food-grains imports of India (Qnty: 000 tonne’s)

Source: www.calculated agricoop.com, GOI.

Table-5.7 provides the detail share of rice imports of total food grains and

agricultural import and total of imports India. Rice imports as compared to

Year Rice

Import

Total Food Grains Import

% Share of rice Import

of total food grains

Import in India

Agri Import

Total National Import

% Agri Imports to total imports

1990-91 66.04 1402.29 4.71 1205.86 43170.82 2.79

1991-92 12.12 324.73 3.73 1478.27 47850.84 3.09

1992-93 102.38 1848.7 5.54 2876.25 63374.52 4.54

1993-94 75.52 945.18 7.99 2327.33 73101.01 3.18

1994-95 6.99 561.61 1.24 5937.21 89970.70 6.60

1995-96 0.08 493.98 0.02 5890.10 122678.14 4.80

1996-97 0.00 1267.63 0.00 6612.60 138919.88 4.76

1997-98 0.05 2494.41 0.00 8784.19 154176.29 5.70

1998-99 6.63 2375.89 0.28 14566.48 178331.69 8.17

1999-00 34.99 1858.6 1.88 16066.73 215528.53 7.45

2000-01 13.2 397.18 3.32 12086.23 228306.64 5.29

2001-02 0.06 2238.16 0.00 16256.61 245199.72 6.63

2002-03 0.87 1996.59 0.04 17608.83 297205.87 5.92

2003-04 0.05 1725.37 0.00 21972.68 359107.66 6.12

2004-05 - 1342.33 -- 22811.84 501064.54 4.55

2005-06 0.26 1719.14 0.02 21499.22 660408.90 3.26

2006-07 0.16 8052.16 0.00 29637.86 840506.31 3.53

2007-08 0.15 4633.62 0.00 29906.24 1012311.70 2.95

2008-09 0.09 2389.48 0.00 37183.03 1374435.55 2.71

2009-10 0.03 145.34 0.02 59367.62 1356468.65 4.38

Co-efficient of Variation (CV) 1990-91 to 1999-

00 81.08 174.46 90.22 79.56 52.03 36.41 2000-01 to 2009-

10 5.20 124.44 2.21 50.70 64.15 31.10

151  

percentage of total food imports were higher between 1990-91 and 1993-94. Then

onwards rice imports as a percentage of total food imports have been negligible or

null except in 2000-01. Agricultural imports as percentage of total imports have

increased almost continuously from 1990-91 to 2003-04. But a declining trend is

observed during the last 6 years i., e. from 2004-05 till 2009-10.

Table-5.8 provides the detail share of basmati rice exports in total rice

exports 2004-05 to 2009-10. The share of basmati rice exports have increased in

terms of quantity and value during the period from 2004-05 to 2009-10 except in

two years 2006-07 and 2007-08. However, the unit value of exports of basmati

rice has gone up from 2004-05 to 2007-08 but declined in the last two years i.e.,

during 2008-09 and 2009-10. The unit value of exports of rice has gone up

continuously during 2004-05 to 2009-10. However, quantity and value of rice

exports from India have fluctuated several times and have reached the lowest level

in the year 2009-10.

Table-5.8 Percentage share of Basmati rice exports in the total rice exports of India during 2004-05 to 2009-10 (Quantity: ‘000 Tonne; Value: Rs. in Crore; Unit Value: Rs. Per Kg.)

Year Basmati Rice Total Rice

Quantity Value Unit Value Quantity Value Unit Value

2004-05 23.98 41.43 172.78 4796.66 6696.43 13.96

2005-06 28.54 48.91 171.42 4088.06 6221.27 15.22

2006-07 22.02 39.69 180.16 4747.91 7034.65 14.82

2007-08 18.29 36.96 202.04 6469.25 11754.38 18.17

2008-09 62.55 84.89 135.70 2488.29 11164.4 44.87

2009-10 91.24 97.26 106.61 940.41 5121.52 54.46

Co-efficient of Variation (CV)

2004-05 to 2009-10 19.74 56.25 42.96 49.59 34.55 66.63 Source: www.calculated agricoop.com, GOI

Table-5.9 provides the details percentage share of imports of basmati rice

in total rice import in India. Quantity of imports of Basmati rice in total rice

imports declined steeply from 0.015 in 2005-06 to 0.002 in 2006-07. Thereafter

the share has remained low at 0.004 in 2008-09 and 2009-10. Value has remained

stable during 2005-06 to 2009-10 except in 2006-07. However unit value has

fluctuated during the period from 2005-06 to 2009-10. The total rice import

during the above period has fluctuated in terms of quantity value and unit value.

152  

Table-5.9 Percentage share of Basmati Rice imports in the total rice imports of India during 2005-06 to 2009-10 (Quantity: ‘000 Tonne; Value: Rs. in Crore;

Unit Value: Rs. Per Kg.)

Year Basmati Rice Total Rice

Qty. Value Unit Value Qty. Value Unit Value

2005-06 0.015 0.01 89.90 1719.71 2502.43 14.55

2006-07 0.002 0.00 218.69 8052.17 9440.48 11.72

2007-08 0.003 0.01 167.28 4629.09 8035.49 17.36

2008-09 0.004 0.01 250.60 2389.48 6020.56 25.2

2009-10 0.004 0.01 199.19 515.45 1647.44 31.96

Co-efficient of Variation (CV)

2005-06 to 2009-10 65.48 38.55 59.46 85.83 61.36 41.15

Source: www.calculated agricoop.com, GOI.

Table-5.10 provides the details share of exports in production of rice in India.

The data for the two decades of production and exports of rice has clearly indicated

an almost continuous decline in the percentage of exports to production of rice from

1990-91 to 2009-10. The share of exports of rice declined from 8.34 per cent in

1990-91 to 2.81 per cent in 2000-01. A further decline to 1.57 per cent was in 2007-

08 with a trend of rise during the next two years in 2008-09 and 2009-10. Severe

competition from major rice producing countries in Asia and other countries in the

major importing countries and continuous rise in domestic consumption of rice in the

country have contributed to this trend.

153  

Table-5.10 Percentage Share of rice exports in the total Production of rice in India

Year Production Export % Share of Production

In Export in India

1990-91 42.12 504.99 8.34

1991-92 44.35 678.24 6.54

1992-93 40.6 580.4 7.00

1993-94 43.58 767.67 5.68

1994-95 42.72 890.57 4.80

1995-96 42.67 4914.01 0.87

1996-97 40.98 2511.98 1.63

1997-98 42.74 2389.86 1.79

1998-99 42.28 4963.59 0.85

1999-00 42.75 1896.12 2.25

2000-01 43.18 1534.48 2.81

2001-02 43.85 2210.98 1.98

2002-03 41.09 5057.43 0.81

2003-04 41.53 3412.05 1.22

2004-05 41.91 4796.66 0.87

2005-06 44 4088.06 1.08

2006-07 42.96 3379.46 1.27

2007-08 41.9 2670.86 1.57

2008-09 42.3 1962.26 2.16

2009-10 40.86 1253.66 3.26 1990-91 to 1999-00

CV 2.59 85.29 ---

2001-02 to 2009-10 CV

2.60 43.84 ---

Source: www.calculated agricoop.com, GOI. 5.4. IMPACT OF WHOLESALE PRICES ON RICE IN INDIA

Table-5.11 Major Centre –wise Wholesale Prices of Rice in India during Sept-2009 to Sept-2011 (In Rs. /Qntal)

Source:www.caluculatedcacp.com, GOI.

Month Delhi Mumbai Chennai Hyderabad Sept., 09 1750 1575 1900 1600 Dec., 09 200 1725 1900 1500 Mar., 10 1975 1775 1800 1500 Jun., 10 1950 1650 1800 1633 Sep., 10 1880 1850 1800 1600 Dec., 10 1975 1850 1900 1600 Mar., 11 1950 1850 1900 1767 Jun., 11 1925 1800 1900 173 Sept., 11 1975 1850 1900 1750 Over the Month sept-2009 to Sept-2011

15580 15925 16800 9955

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Table-5.11 provides the details wholesale price of rice in major centres

changing 2009 to 2011. Wholesale price of rice in Delhi has been the highest

during sept-2009 to sept-2011 (except in Dec-2009). Compared to the wholesale

price of rice Mumbai, Chennai and Hyderabad during the corresponding months

in 2009, 2010 and 2011, wholesale price of rice in Hyderabad was relatively

lower compared to other three relatively lower. Wholesale price of rice was lower

in Mumbai compared to the wholesale price in Delhi and Chennai during the

corresponding period.

Table-5.12 Average wholesale Prices of Paddy and Rice in Andhra Pradesh during 2001-02 to 2010-11 (Price per Quintal in Rs)

Year Paddy (Ist Sort) Paddy (IInd Sort) Rice (Ist Sort) Rice (IInd Sort)2001-02 749.06 616.36 1396.44 979.47 2002-03 824.43 655.43 1582.07 1019.95 2003-04 641.13 527.83 1473.18 925.66 2004-05 656.24 565.11 1344.79 925.34 2005-06 747.96 658.36 1423.68 1023.77 2006-07 795.41 675.6 1636.03 1163.81 2007-08 834.92 722.31 1630.08 1210.83 2008-09 1113.01 919.93 2043.22 1467.76 2009-10 1391.1 1117.55 2456.36 1724.69 2010-11 1669.19 1315.17 2869.5 1981.62 Source: Directorate of Economics and Statistics, Govt of Andhra Pradesh.

Table-5.12 provides the detail average wholesale prices of paddy and rice in

Andhra Pradesh (2001-02 to 2010-12). There is a trend of fluctuations of wholesale

prices of paddy of 1st sort during 2001-02 to 2003-04. However a trend of continuous

size in wholesale prices of paddy of 1st sort from 2004-05 to 2010-11 is observed. A

similar trend is observed for wholesale prices of paddy of IInd sort during the

corresponding period in Andhra Pradesh. An upward movement of wholesale prices

of rice with smaller fluctuations during the period from 2001-02 to 2010-11 has been

observed regarding the two varieties 1st and IInd sort in Andhra Pradesh.

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Table-5.13 Growth Rate of Wholesale Price Rice in food-grains Index in India (Year=1993-94=100)

Source: Economic Adviser, Ministry of Commerce & Industry, GOI Note: (P) Provisional.

Table-5.13 provides the detail there is a trend of fluctuations in the of

growth rate of wholesale price Index of food-grains and Cereals and rice

during the period from 1998-99 to 2009-10. The positive growth of price

index for wholesale price of food-grains, cereals and rice during the first two

years from 1998-99 to 1999-00 followed by a negative growth rate during the

next two years. The wholesale price index has indicated a positive but slow

growth till 2004-05 followed by a significant increase in the wholesale price

index of food-grain, cereals and rice till 2009-10. The average growth rates of

wholesale price of all the three group of food grains during 1998-99 to 2000-

01 have been largely the same. However, the average rate of growth of

wholesale price of food grains is marginally higher than the other two groups

during 2001-02 to 2009-10. In the subsequent period the difference in the

growth of average wholesale in the growth of average wholesale price of

food-grains, cereals and rice are very close to each other.

Year Food-grains Cereals Rice 1998-99 9.12 9.03 8.86 1999-00 16.05 17.83 17.17 2000-01 -1.47 -2.70 -2.22 2001-02 -0.81 -1.68 -0.30 2002-03 1.10 2.00 -0.60 2003-04 1.15 1.61 1.69 2004-05 0.68 0.91 -0.36 2005-06 5.35 4.44 3.75 2006-07 10.16 7.32 2.92 2007-08 4.61 6.17 6.74 2008-09 8.63 8.88 11.11 2009-10 (P) 15.55 13.54 14.41

1998-99 to 2000-01 Avg 23.70 24.16 23.81 2001-02 to 2009-10 Avg 46.43 43.19 39.36 1998-99 to 2000-01 CV 37.25 42.63 40.85 2001-02 to 2009-10 CV 11.64 10.87 13.63

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Chart-3 Growth Rate of Wholesale Price Cereals in Index of Food-grains in India

Source: table-5.13

Chart-4 Growth Rate of Wholesale Price Rice in Index of Food-grains in India

Chart-4 Growth Rate of Wholesale Price Rice in Index of Food-grains in India

Source: table-5.13

Chart-5 Growth Rate of Wholesale Price in Index of Food-grains in India

 

          Source: table-5.13.

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Table-5.14 TRENDS IN WHOLESALE PRICE OF RICE FOOD GRAINS INDEX IN INDIA (Base Year=1993-94=100)

Year Food-grains Cereals Rice 1996-97 137.6 135.7 128.5 1997-98 139.3 138.4 134.3 1998-99 152 150.9 146.2 1999-00 176.4 177.8 171.3 2000-01 173.8 173 167.5 2001-02 172.4 170.1 167 2002-03 174.3 173.5 166 2003-04 176.3 176.3 168.8 2004-05 177.5 177.9 168.2 2005-06 187 185.8 174.5 2006-07 206 199.4 179.6 2007-08 215.5 211.7 191.7 2008-09 234.1 230.5 213 2009-10 270.5 261.7 243.7

1996-97 to 2000-01 CV 2.37 2.50 2.57 2001-02 to 2009-10 CV 1.85 1.74 1.59 1996-97 to 2000-01CAGR 7.29 7.64 8.04 2001-02 to 2009-10 CAGR 5.54 5.22 4.39

Source: Economic Adviser, Ministry of Commerce & Industry, GOI Note: (P) Provisional.

Table-5.14 provides the detail of wholesale price of food-grains (general),

cereals and rice which have shown a trend of consistent rise with marginal

fluctuations in the intervening period between 1996-97 and 2009-10. There is a

greater degree of stability of prices of the three groups of food-grains during the

period from 2000-01 till 2009-10. The co-efficient of variance of the wholesale

price of food grains during the two periods from 1996-97 to 2000-01 and from

2001-02 to 2009-10, for the three groups have shown largely stable, similarly the

CAGR of wholesale prices too have indicated similar trend during the

corresponding period.

Table-5.15 Monthly Index of wholesale Price of Rice in India-2011

Monthly index of wholesale price of rice during 2011 has fluctuated

continuously. The wholesale price index varied between a minimum of 667.90

during March 2011 and a maximum of 852.80 per cent during January 2011. The

wholesale price index of rice during the next six months varied between a

158  

minimum of 691.40 in August 2011 and a maximum of 881.60 in October 2011.

The wholesale price index slumped steeply to 346.20 in January 2012.

Table-5.15 Share of Percentage Monthly Index Wholesale Price of rice in India Weight: 1.79 Base Year: 2004-05=100

Source: www.caluculatedcacp.com, GOI. Table-5.16 Average wholesale Prices of Paddy and Rice in Andhra Pradesh during

2001-02 to 2010-11 (Price Per Quintal in Rs) Month/

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2005 -- -- -- 102.50 102.50 104.30 105.70 106.70 107.00 107.60 106.60 105.00

2006 104.90 105.00 105.00 105.60 106.40 107.00 107.30 107.80 108.90 111.70 112.00 111.90

2007 113.30 113.90 114.50 115.70 116.20 116.60 117.80 119.30 120.60 126.10 125.40 124.80

2008 127.30 128.80 130.90 132.60 132.70 132.60 133.90 134.90 135.70 145.00 146.30 146.30

2009 147.00 149.30 151.10 150.90 151.00 151.80 151.40 153.10 157.60 160.20 162.60 164.50

2010 164.70 164.10 163.30 163.50 163.50 164.30 165.90 164.40 166.60 168.70 170.30 171.10

2011 170.60 170.40 167.00 167.30 169.70 169.00 169.90 172.90 173.30 176.30 175.40 173.10

2012 172.20 173.00 175.40 177.30 178.00 181.60 186.80 190.70 194.80 -- -- --

Source: Directorate of Economics and Statistics, Govt of Andhra Pradesh.

Date/Month Index

01/01/2011 to 29/01/2011 852.80

05/02/2011 to 26/02/2011 681.50

05/03/2011 to 26/03/2011 667.90

02/04/2011 to 30/04/2011 836.60

07/05/2011 to 28/05/2011 678.70

04/06/2011 to 25/06/2011 676.10

02/07/2011 to 30/07/2011 849.70

06/08/2011 to 27/08/2011 691.40

03/09/2011 to 24/09/2011 693.20

01/10/2011 to 29/10/2011 881.60

05/11/2011 to 26/11/2011 701.20

03/12/2011 to 31/12/2011 869.20

07/01/2012 to 14/01/2012 346.20

Total 9426.10

159  

Table-5.16 Monthly and Year wise wholesale Price of Rice in India

There is a trend of uniformity in the month-wise and year wise wholesale

price of rice in India during 8 years from 2005 to 2012. A continuous rise in

wholesale price of rice during all the eight years and during all the 12 months from

January to December has negative fluctuations during the 8 years during all the 12

months have been found in this context. A maximum rise of wholesale price during

the eight year (2012) was found at 194.80 in September. However, month to month

variations in wholesale price of rice in individual years are observed during 2007,

2009, 2010 and 2011. They are however marginal variations during certain months.

Overall there is a trend of increase in wholesale price of rice each year between

January to December.

Chart-6

Source: www.tradingeconomics.com, Ministry of Commerce and Industry, GOI

Chart-7

160  

Chart-8

Source: www.tradingeconomics.com, Ministry of Commerce and Industry, GOI

Chart-9

Chart-10

161  

Chart-11

Chart-12

Source: www.tradingeconomics.com, Ministry of Commerce and Industry, GOI

5.5 CONCLUSION:

Exports and imports of rice are related to the framework of food security

and food management policy. From a situation of heavy dependence on imports of

basic staple food in the middle 1960s India steered itself to a comfortable situation

during the 1990s and during the current millennium basmati rice has emerged as

an important component in India’s exports of rice with its distinct long-grain

aroma and appetizing qualities. There is an all-round increase in growth of rice

exports in relation to total agricultural exports and total production of rice in the

162  

country. However, in recent period the severe competition in importing countries

in case of rice exports have been witnessing a declining trend. Added to this is the

increased consumption of rice in the country. Index of wholesale price of rice in

different centres in the country indicates a trend of fluctuations. Rice imports as a

percentage of total imports of food-grains have indicated a declining trend.