Great News for Paddy Farmers! Rice Export in FY 2022-23 to Witness a Big Boost

After a record shipment of approximately 20 million tons (MT) of grain worth more than $ 9.6 billion in 2021-22, India's rice exports are expected to continue to expand strongly in the current fiscal (2022-23).

Rice production, which is primarily a Kharif crop, is likely to benefit from the expected 'normal' monsoon rains this year. In the recent decade, India has been the world's top rice exporter, with export revenues reaching an all-time high of $8.7 billion in 2020-21.

Rice exports would continue to rise this fiscal year, according to official sources, due to factors such as excess domestic stockpiles and the likelihood of strong Kharif crops. The Kharif season accounts for more than 80% of India's rice production

As of April 1, 2022, the Food Corporation of India (FCI) has rice stock of more than 32 MT, compared to the buffer norm of 13.58 MT. This stock, however, does not include 22 MT of rice that FCI has yet to receive from millers.

"We have more than enough rice stocks to meet the Public Distribution System's needs," a source stated.

According to the United States Department of Agriculture's (USDA) rice outlook report for April, worldwide rice trade in the calendar year 2022 is expected to reach a new high of 52.5 MT, with India's rice exports expected to be around 21 MT and Vietnam's rice exports expected to be around 6 MT.

According to the DGCIS, India exported rice to more than 150 nations in 2021-22. "It shows India's rice export diversification over time," a commerce ministry official said.

Apart from the United States and the European Union, India sells aromatic and long grain Basmati rice to Saudi Arabia, Iran, and other Middle Eastern countries. Benin, a West African country, is one of the largest importers of non-basmati rice.

According to the Second Advance Estimates for 2021-22, rice production in the 2021-22 crop year (July-June) is expected to reach a new high of 127 MT, up 11 MT from the previous five years' average of 116 MT.

After China, India is the world's second-largest rice producer. The record exports will enable rice producers to reduce their stocks, which will help farmers since the rising demand for Indian rice is expected to boost their profits.