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India Rice Production Faces Steepest Fall in Nearly Two Decades

India Rice Production Faces Steepest Fall in Nearly Two Decades
India rice production faces steepest fall in nearly 20 years, stocks cushion exports · telegraphindia.com

India may harvest much less rice this year than last year.

The expected decrease is about 10 million metric tons.

This would be the biggest drop in nearly 20 years.

The main reason is that many rice-growing areas have received too little rain.

Farmers also planted less summer rice than they did last year.

Some reservoirs have less water, which could affect winter rice planting too.

Lower production is already pushing local and export rice prices higher.

However, India has very large rice reserves from earlier harvests.

Those reserves may let the country keep exporting large amounts of rice.

Key facts

Projected production decline
About 10 million metric tons
Expected percentage decline
Nearly 6.5% from last year’s record 154 million metric tons
Rainfall deficit
15% below normal nationally since the monsoon began on June 1
Largest regional deficit
Up to 42% in some rice-growing states
Summer-sown rice area
42.68 million hectares as of September 11, nearly 4% below the previous year
Share of production
Summer-sown rice accounts for more than 80% of India’s total production
Rice reserves
59.6 million tons, including unmilled paddy, as of September 1

Quotes

B.V. Krishna Rao

President of the Rice Exporters Association

“This year, farmers growing premium varieties will get higher prices in the open market. That will also lead to lower sales to the government”
thehindubusinessline.com telegraphindia.com
“Yields will be lower due to reduced rainfall. We estimate that production could decline by around 10 million metric tons”
thehindubusinessline.com telegraphindia.com

Sources

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