IGI Logo

India is set to achieve higher rice production this year despite heavy rains and flooding in certain regions, according to Agricultural Minister Shivraj Singh Chouhan. The monsoon has been strong, with rains 7.6% above average, boosting overall rice planting. Although some states faced yield losses from floods, the impact is not widespread. With rising inventories and the upcoming harvest, the government is considering easing restrictions on non-basmati rice exports, which were imposed in 2023 to control local prices and ensure sufficient supplies. India, which contributes over 40% of global rice exports, has also removed the minimum export price for basmati rice ahead of the new crop’s arrival.

Key Highlights

* India expects higher rice production this year despite recent floods.

* Export restrictions on non-basmati rice could be lifted as inventories surge.

* Plentiful monsoon rains have improved the overall crop outlook.

* India remains the top global rice exporter, supplying over 40% of the market.

* The government removed the export floor price for basmati rice.

India's rice production is expected to surpass last year’s output despite heavy rains and flooding in some regions, according to Agricultural Minister Shivraj Singh Chouhan. A robust monsoon season, with rains 7.6% above average, has boosted rice planting, mitigating concerns about yield losses from flooding. While some areas in a few states have been affected by heavy rains, the minister reassured that the problem is not widespread, and overall production remains on track for an increase.

This strong outlook for rice production may lead the Indian government to relax restrictions on non-basmati rice exports. These curbs, imposed in 2023, were intended to secure domestic supplies and stabilize prices. However, with inventories swelling and farmers preparing to harvest a new crop, easing restrictions could help India, the world’s largest rice exporter, resume its crucial role in the global market.

Rice prices have been supported by the expectation of higher output, despite initial fears about weather disruptions. The government has also removed the minimum export price for basmati rice, signaling confidence in the upcoming harvest and reflecting the need to clear inventories ahead of new supplies. As the harvest approaches, rice prices are expected to remain stable with potential for further adjustments depending on global demand.

Finally

India’s higher rice production and easing export restrictions could stabilize rice prices and reassert its dominance in global markets in the coming months.

Above views are of the author and not of the website kindly read disclaimer