Rice

Farmers across the country have sown paddy across 19.76 mln ha this kharif season as of Thursday, down 12.4% on year. The area under paddy was also below the average area of 22.40 mln ha for the period. The fall in acreage can be attributed to lower sowing in top growing states of Uttar Pradesh, West Bengal, Odisha, Bihar, and Jharkhand. Weak monsoon rains in West Bengal, Bihar, Jharkhand, and eastern parts of Uttar Pradesh slowed the process of sowing. Eastern Uttar Pradesh had received 298.1 mm rainfall during Jun 1-Jul 30, 25% below normal. Overall monsoon rains in eastern and northeastern India during Jun 1-Jul 30 was 555.4 mm, 28% below normal.

With the decision of the State government to provide irrigation facility to the ayacut of Musi project for kharif season, farmers of 42 villages in Suryapet and Nalgonda district under left and right canals are now switching from cotton to paddy cultivation. Out of 35,000 acres of ayacut under left and right flank canals of Musi project, cultivation of paddy was taken up by the farmers in majority of ayacut area in view of irrigation facility.

The Telangana government 30 lakh tons of paddy was expected to be procured from farmers during this years Kharif season in the state and asked its civil supplies department to prepare an action plan for it. A total of 107.92 lakh tons of paddy was purchased from 22.18 lakh farmers during 2016 Kharif, 2017 Rabi and Kharif and 2018 Rabi seasons.

During the period under discussion, Pakistan has improved its rice exports as compared to previous corresponding period. The exports during the period July-June 2016-17 stood at 496,263 metric tons valuing at $453.441 million. Pakistan’s basmati rice have seen a considerable 19.14 percent growth in quantity exported as compared to the previous period. Collectively, 4.106 million tons rice worth $2.073 billion was exported in the last 12 months if the last financial year, however, 3.523 million tons of rice valuing $1.606 billion was recorded during the corresponding previous financial year. The overall growth of rice exports stood at 26.78 percent.

Rice production is forecast up by 3mn t to 491mn t in 2018-19, but a rise of 5mn t in global rice consumption to 493mn t places demand above supply, reducing ending stocks by 2mn t.

Despite setting a target to bring down by over one lakh hectares (lh) area under rice cultivation this year, Punjab has failed and acreage under the crop has already reached up to 29.57 lh and is likely touch 30 lh again. Last year, 30.07 lh area was cultivated under rice and this year department had proposed to bring it between 28-29 lh by diverting its area to cotton and monsoon maize crops. But lack of canal water during cotton sowing, increased MSP of assured paddy and poor rate of recently harvested ‘spring maize’ are the contributing factors to increase in area under rice. Till July 23, 2018, the area under rice (the cultivation of which was started on June 20), had reached to 29.57 lh out of which over 23 lh was dedicated under paddy rice (parmal rice) and remaining under basmati rice.

The Madhya Pradesh government has set a target of procuring 2.0 mln tn of paddy in the kharif marketing season in 2018-19 (Oct-Sep).

China has agreed to import rice from 14 of the 19 registered rice exporters from India, while the remaining five— mostly of basmati rice sellers — have been asked to improve storage and isolation facilities before applying afresh. China allows import of only basmati rice from India, but with this clearance, even non-basmati rice can be exported.

The price of high-quality rice in the country is increasing annually because of a decline in production. Myanmar people mainly consume high-quality Pawsan rice, which is grown in Ayeyarwady Region, and Shwe Bo Pawsan rice grown in Shwe Bo township of Sagaing Region. In 2014, a bag of Pawsan rice cost K29,000 (US$20). That rose to K35,000 in 2015 and K42,000 this year. That’s an increase of more than 44 percent over the four-year period. Meanwhile, the price of a bag of Shwe Bo Pawsan rice rose 58pc to K57,000 in 2018 over the same period.

A series of weather disturbances in the past few weeks have been delaying the delivery of 240,000 bags of imported rice from Thailand meant for Eastern Visayas region. The foreign vessel carrying 140,000 bags of Thai rice is stuck at Bacolod port for weeks and was unable to unload the allocation for Negros Island. The vessel was scheduled to arrive in the region two weeks ago. the cargo ship unloaded 25,000 bags out of 80,000 bags intended for Negros Island. If the weather improves, unloading of remaining 55,000 will be completed within a week. Another ship from Thailand carrying 100,000 bags is still taking shelter in the West Philippine Sea due to storm.

Farmers across the country have sown paddy across 15.65 mln ha this kharif season, down 12.4% on year. Paddy acreage was also below the average area of 17.94 mln ha for the period. The fall in acreage can be attributed to lower planting in top growers Uttar Pradesh, West Bengal, Odisha and Punjab. Acreage in Punjab has declined as the state government is encouraging farmers to shift to coarse grains like maize from more water-intensive crops like paddy to check the fall in groundwater level.

About 4.106 million tons of rice worth US$ 2.073 billion were exported during 12 months of last financial year as compared the exports of 3.523 million tons valuing US$ 1.606 billion of the corresponding period of last years. The exports of the above-mentioned commodity had registered 26.78 per cent growth during the period under review.

Despite prediction of normal monsoon this year, things are not looking good as far as eastern and North-eastern parts of the country are concerned. Several parts of Bihar and Uttar Pradesh, two main States of paddy crop, are facing drought-like situation due to shortage of rainfall. According to Agriculture Ministry data, compared to last year rice has been sown in 68 per cent less area in Bihar while UP has witnessed 35 per cent less area sowing under rice cultivation till date. Rain deficiency in Bihar is at 49 per cent whereas UP has recorded 48 per cent less rainfall in Eastern and Western parts.