New Delhi [India], October 1 (ANI): India is in a strong position to meet rising global demand for rice as global production is expected to fall by 9 per cent while demand is projected to increase by 14 per cent, Dev Garg, National Vice President, Indian Rice Exporters Federation (IREF), said in an exclusive conversation with ANI.
Garg said India has sufficient rice stocks to meet global demand despite concerns over lower production, higher fuel costs and fertiliser shortages linked to the El Niño impact and the Iran war crisis.
He said “India is in a very comfortable position to supply to the world… Today the global production of rice is expected to fall by about 9 per cent, and the global demand is expected to rise by 14 per cent. This is a very significant development because rice is a food grain that is a staple crop for more than 35 per cent of the world, and more than 50 per cent of the world’s population consumes rice on a daily basis. This means that this 14 per cent of increase in demand is a very significant number”.
India’s total rice production last year was around 151 million metric tons, making it the largest producer of paddy in the world, having surpassed China. India was also the largest exporter of rice, with exports of around 22 million metric tons.
Garg said India currently has surplus stocks of approximately 270 lakh metric tons over and above buffer stocks. This is around 5 million metric tons more than India’s total exports.
“So even after exporting 22 million tons, we have a surplus of 27 million tons, which is a very huge surplus,” Garg said.
Garg said India’s production estimates had earlier been projected at around 156 million metric tons, but the estimate has now been revised to around 146-147 million metric tons due to the impact of El Niño and other challenges.
Despite the reduction, he said India would continue to have a large surplus. The federation expects the country’s total surplus stock this year to cross 40 million metric tons, which Garg said would be almost double India’s annual exports.
He also said several major rice-producing countries are facing pressure. Vietnam has started importing more rice from India, while Thailand and Pakistan are under stress.
“This is a very good and golden opportunity for India’s agri sector to expand its market in the international market’s international footprint,” Garg said.
However, higher fuel and fertiliser costs remain a concern for the global rice trade. Garg said the rice crop for the Kharif period has already been sown and is now at the harvest stage, meaning the current production estimate of 146 million metric tons already takes into account factors such as El Niño, fuel shortages and fertiliser shortages.
The global rice market is also facing higher transportation costs. Garg said marine fuel costs have increased sharply, from around USD 400-500 earlier to around USD 1,300-1,400.
This has pushed up the cost of transporting rice by sea and is contributing to higher prices for consumers in importing countries.
Garg said global wholesale rice prices have increased by 15 per cent over the last four months. He added that rice prices are expected to remain under pressure as global production falls and the cost of production rises.
More than 60 countries worldwide depend on Indian rice for their domestic requirements, according to Garg. He said higher prices could put pressure on these countries as they would need to spend more on food imports.
Despite these challenges, Garg said India is unlikely to face a rice shortage and could use the situation to strengthen its position in the global market.
“India has to leverage this situation and increase its exports and global footprint,” he said, adding that rice should be treated as a national strategic asset given the dependence of more than 60 countries on Indian rice.
Garg said the expected increase in global demand, combined with lower production in other major producing countries, could provide a significant opportunity for Indian farmers and exporters. (ANI)
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