About 25,000-30,000 containers are lying at ports because of disputes with Customs, etc and basmati rice exports have been hit hard because 80 per cent is shipped in containers. Farmers fear deficient rainfall and low coverage of minimum support prices (MSP) procurement have reflected in paddy households selling less of their produce in agricultural produce marketing committee (APMC) yards.

The volume of rice sold through APMCs has, as a result, dropped reducing from 17 per cent (2013) to 2.7 per cent (2019) due to poor participation of private traders, low infrastructure, unawareness, etc, according to Infomerics Valuation and Rating Pvt Ltd, a SEBI-registered and RBI-accredited financial services credit rating company.

The report “Rice Industry – Emerging Contours” released onThursday is also optimistic about the future of the rice industry in India. It highlights the need for a comprehensive rice strategy, with a focus on new systems, technologies, and new rice seed varieties. It lists the government initiatives on bringing about structural changes in the sector and the efficient ways to reduce the extent of dependence on the vagaries of the monsoon.

Despite some significant region-specific differences, generic factors such as government support in rice production, favourable monsoon, rising number of rice processing companies and increasing exports have positively impacted the Indian rice industry.

The report states that in both kharif and rabi seasons rice production has increased over the years. The total production rose by about 15 per cent between 2013-14 and 2020-21.

Rice (including basmati and non-basmati) occupy a major share (more than four-fifth) in the country’s total cereals export basket. Telangana, Tamil Nadu, and Andhra Pradesh constitute over 80 per cent of the total area under paddy cultivation, which rose from 30 lakh hectares in FY20 to 35 lakh hectares in FY21.

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