25209640 rice export project

8/13/2019 25209640 Rice Export Project

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A SYB.M.S PROJECT ON

Submitted to Prof. Jalpa Parekh of BMSDepartment

Group members:

anish Choudhari (39)

Jaffer Choudhari (40)Khatija audi (05)Mayuri Joshi (07)


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We are greatly honoured and ri!ilegedthan" and a#"no$ledge those eo le $ho #ontri%uted dire#tly or indire#tly in &a"i

roje#t su##essfully'(irstly $ith gratitude) $e $ould than" *u

+rin#i al ,ir) +rof' -'.' /a"da$ala for gi!ing us o ortunity for &a"ing this roje#t and e0tgood "no$ledge fro& this roje#t' We also *ur Joint1+rin#i al) +rof' Ka&ala -'2 3i#e1+rof' Malli"a and *ur 4M, Co1ordinator) +ro

K' in this #onte0t' With i&&ense gratitude$ould li"e to than" *ur ,u%je#t Co1ordinatorJal a +are"h) for guiding us throughout the

We $ould also than" all the sour#es fr$ho& $e ha!e #olle#ted the ri&ary data alastly our grou &e&%ers $ho ha!e %su orti!e and #o1o erati!e throughout'


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SR.NO.

CONTENTS PG.NO.

1. Introduction 1 2. Origin and history of Rice in India 2 3. Production of Rice in India 2 4. Classification of Rice 35. Branding of rice 56. Factors influencing rices of rice 6!. Pro"le#s of Rice e$ orts fro# India 7%. &uggestions for sustaining Rice e$ orts 8'. Pros ects of Rice e$ orts fro# India 9

1(. Incenti)es to Rice e$ orters of India 10

11. Restrictions on *$ orts 1112. &tatistics + Calculations of Rice *$ orts fro# India

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13. Case &tudy 1514. Conclusion 1715. ,gencies e$ orting rice 18


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16. Pri#ary data-i. Infor#ation on arari Rice /illsii. 0uestionnaires

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1!. Bi"liogra hy 19

INTRODUCTION

Worldwide, India stands first in rice area and second in rice production, afterChina. It contributes 21.5 percent of global rice production. Within the country, riceoccupies one-quarter of the total cropped area , contributes about 40 to 43 percent oftotal food grain production and continues to play a ital role in the national food andli elihood security syste!. "owe er, India did not beco!e a !a#or rice e$portingcountry for a long ti!e. Its share in world rice trade, !ainly in the for! of s!all%

olu!e e$ports of highly pri&ed bas!ati rice, was insignificant '5 percent(. It was notuntil the !id%1)*0s that the +uantu! of e$port started to grow, fro! 110000 tonnes in1978-79 to 890613 tonnes in 1994-95 and to a record 5.5 million tonnes in 1995-96,

second only to hailand 'at 5.) !illion tonnes(.-ice is one of the important

cereal food crops of India. -icecontributes about 43 of total foodgrain production and 4/ of totalcereal production in the country. Itcontinues to play ital role in thenational e$ports. he percentage shareof rice in total national e$port was4.5 during 2005%0/. he percentageshare of agriculture e$port in totalnational e$port was 1*.25 , whereasthe percentage share of rice e$port intotal agriculture e$port was 24./2during 2005%0/. hus, rice e$portcontributes nearly 35 of totala!riculture e"port fro! the country.


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!ong the e$porting countries, #hailand, $ietnam, India and %a&istan are the!a#or countries e$porting rice in si&eable +uantity. India is one of the richest countriesin the world in ter!s of possessing tre!endous di'ersit( in rice 'arieties . here aredifferent arieties of rice%depending on the weather, soil, structure, characteristics and

purposes.-ice is grown under a da!p war! cli!ate. te!perature range of 20 C to 3 .

C '/* to 100 ( is re+uired for the opti!u! growth of rice. -ice being a se!i%a+uatic crop grows best under sub!erged, waterlogged conditions. -ice is able totolerate a wide range of soil reactions, but has a preference of acidic soils. -iceculti ation is found in all the states of India, but )est *en!al, +ttar %radesh,

adh(a %radesh, %un a , /rissa and *ihar are the ma or rice producing states.bout /00 i!pro ed arieties of Indica rice ha e been released for culti ation since

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ORIGIN AND HISTORY OF RICE IN INDIA

India is an i!portant center of rice culti ation. he rice har esting area in Indiais the world s largest. he two !a#or rice arieties grown worldwide today are /r( asati'a indica and Oryza sativa japonica . ccording to research studies, they owe theirorigins to two independent e ents of do!estication thousands of years ago.

"istorians belie e that while the indica ariety of rice was first do!esticated inthe area co ering the foothills of the astern "i!alayas 'i.e. north%eastern India(,stretching through 6ur!a, hailand, 7aos, 8ietna! and 9outhern China, the #aponica

ariety was do!esticated fro! wild rice in southern China which was introduced to

India before the ti!e of the :ree;s. he earliest re!ains of culti ated rice in the sub%continent ha e been found inthe north and west and date fro! around 000 *2 . hence there is the custo! of throwing rice atnewlyweds. In India, rice is always the first food offered to the babies when they starteating solids or to husband by his new bride, to ensure they will ha e children.


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PRODUCTION OF RICE IN INDIA

ro! a nation dependent on food i!ports to feed its population, India today isself%sufficient in grain production and also has a substantial reser e. he progress !ade

by agriculture in the last four decades has been one of the biggest success stories ofliberal India. griculture and allied acti ities constitute the single largest contributor tothe :ross ?o!estic : :I2> in!rams

2000%01 53./3 2000 220.02001%02 4.2) 2001 204.)2002%03 *2.54 2002 215.02003%04 */.0* 2003 201.*

2004%05 *)./* 2004 205.42005%0/ *4.)* 2005 20/.4200 %0* )3.0* 200/ 20*.1

=ource? @ederal ministr( of !riculture, Ao't. of India


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CLASSIFICATION OF RICEIndia is one of the i!portant countries in the world in e$port of rice. India s

e$ports are e$pected to go up further during current financial year. "ence, Indian ricee$ports are set to reach second place in the world !ar;ets after hailand edging out8ietna! in the process as per the report of the ood and gricultural Brganisation.Indian rice is classified into three typesA

A. BASMATI RICE-ice e$port fro! India constitutes the ma or share of *asmati rice . =early two%

third of 6as!ati rice produced in India is e$ported. 6as!ati rice is the leading aro!aticfine +uality rice of the world trade and it fetches good e$port price in the international!ar;ets. In fact, 6as!ati rice is a gift fro! Dother =ature to the Indian sub%continentand grows in the Indo-Aan!atic plains onl(.

he !eaning of 6as!ati can be deri ed fro! B asB which !eans aro!a andBmatiB !eaning sense. hus the word 6as!ati i!plies Cin!rained aromaC . 9o it is the

aro!a that gi es bas!ati its no el characteristics un!atched by any other rice grainanywhere else in the world. Dany scented arieties of rice ha e been culti ated in theIndian sub% continent fro! ti!e i!!e!orial but bas!ati distinguishes itself fro! allother aro!atic rice due to its uni+ue aro!atic characteristics coupled with sil;y te$tureof its long grain. =ow, it is still considered Bdream of the massesB and Bcharm of theclassesB.

Aolden par oiled :a *asmati =il&( ra asmatirice


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:ulf region re!ains the !a#or !ar;ets for Indian bas!ati rice and inside :ulf,9audi rabia accounts for the !a#or chun; of bas!ati i!ports fro! India.


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BRANDING OF RICE

It s sign of the changing ti!es. he i!print of a brand is getting bolder, e en in adown%to%earth co!!odity !ar;et li;e rice. long with increasing consu!er awarenessand changing preferences, the rice industry is witnessing change. =o !ore is thefriendly neighbourhood grocer s word all there is to go by. In a country that produces

thousands of arieties of rice, branding has co!e to play a role in do!estic as well ase$port !ar;ets. he brand is the new !antra for success and bas!ati, also ;nown as the;ing of rice , is in the !idst of the action.

LAL QILLA TOPS THE LISTIndia accounts for about 0 percent of the world s bas!ati production of 1.25

!illion !etric tonnes. Bf this, nearly 3.5 la;h !etric tonnes is consu!ed in India andthe rest is e$ported. he industry is growing rapidly the world o er with bas!ati

beco!ing increasingly popular. Bf the total do!estic bas!ati consu!ption of 3.5 la;h!etric tonnes, branded bas!ati accounts for about 1.25 la;h !etric tonnes and has beengrowing at the rate of 20 per cent a year. he Indian randed asmati mar&et isesti!ated to be worth between :s. 600-700 crore. -ice producers ha e pic;ed up the!ar;et trend towards preference for branded bas!ati and ha e #u!ped on to the

bandwagon so that there are !ore than 100 regional brands of rice in India. hetrendsetter has been mar =in!h 2ha al ala of mritsar , whose 7al Fuila brand isac;nowledged as the best selling rice brand in India, notching up sales of -s 100 crorea year.

BASMATI RICE BRANDS OF INDIA

In a tough and a co!petiti e international !ar;et of rice, it has beco!e ery!uch necessary to gi e a brand na!e to e en a food grain, rice. With the increase inconsu!er awareness and shift in the position of custo!er fro! a !ere buyer to theGHing Bf the Dar;et , it has beco!e ut!ost essential to gi e a na!e to the essentialfood crop of India to sur i e in the international !ar;et. he brand is the new !antrafor success and bas!ati, also ;nown as the ;ing of rice , is in the !idst of the action.


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Bf the total do!estic bas!ati consu!ption of 3.5 la;h !etric tonnes, branded bas!ati accounts for about 1.25 la;h !etric tonnes and has been growing at the rate of20 percent a year. he Indian branded bas!ati !ar;et is esti!ated to be worth between-s. /00% 00 crore. -ice producers ha e pic;ed up the !ar;et trend towards preferencefor branded bas!ati and ha e #u!ped on to the bandwagon so that there are !ore than100 regional brands of rice in India. 9o!e fa!ous brands a ailable in India, += ,2anada, +.D., and !any other countries are as follows A 7al Filla ?ouble ?ia!ond 6rand 6as!ati -ice -esha! brand ilda 6as!ati rice


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5. =easonal c(cles? 9easonal cycles are present in rice culti ation.


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5. Inelastic prices? Indian rice prices are inelastic due to relati ely hi!h cost ofproduction whereas the !a#or rice producing nations ha e decreased the price tocapture the international !ar;ets.

6. Gac& of proper infrastructural facilities? -ice !ills ha e not een full(moderni ed to ensure high !illing reco ery and reduce the percentage of bro;enrice. part fro! this, there is lac; of proper arrange!ents for production ofsufficient +uantity of +uality seeds needed for culti ation of rice for e$port

purposes.

7. Hualit( pro lems of *asmati rice? Indian 6as!ati rice is facing aroma pro lem , because intensity of aro!a in traditional bas!ati arieties is not as high as it used to be.


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1. 6reeding progra!!e !ay be initiated to de elop high yielding e$port +ualityrice '6as!ati, =on%6as!ati, 7ong :rain -ice, etc.( to enable the e$porters to

sustain their e$port in future.. 9ur ey !ay be conducted to identify e$port +uality belts@&ones for production of

rice to !eet the re+uire!ent of e$ports.

3. $tension acti ities !ay be strengthened to educate the culti ators for productionof +uality rice to !atch the standards of international !ar;ets.

4. 7ow cost production technology !ay be de eloped to bring down the cost of production to enable the e$porters to co!pete with co!peting countries in theinternational !ar;ets.

5.


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wareness about bas!ati rice is spreading a!ong different strata of the society inthe country and abroad. 6as!ati rice is possessing uni+ue grain, coo;ing, eating anddigesti e +ualities. "ence, !a#ority of people in the country and abroad ha e de elopedli;ing for bas!ati rice. 6ecause of its superfine +uality, bas!ati rice is !ost preferredand also !eant for high pre!iu! alue in the national and international !ar;ets. hus,

bas!ati rice is also stated to be


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"e said in an inter iew here on uesday that the ?irectorate%:eneral of oreignrade had issued a notification earlier this !onth allowing rice e$ports to 21 frican

countries. hree :o ern!ent agencies % #2, =#2 and %>2 % had been appointedto facilitate e$ports to these.

G6ut our past e$perience shows that there is no transparency in such transactions.hree or four !a#or e$porters !anage to corner the contract and the others are denied

the benefit. It is of no benefit to the !illers or far!ers and only the three or four big players stand to gain. herefore, we want transparency in the transactions. endersshould be floated and all should be gi en a fair chance, said garwal.

"e said that after i!position of ban on rice e$ports in 200 so!e fi e la;h tonnesof rice was allowed to be e$ported to 6angladesh in go ern!ent%to%go ern!ent deals

but only three or four !a#or e$porters grabbed the contracts."e said the current situation in ndhra 2 and the +nited =tates. he actual use of e$port subsidies has fallen short of theaggregate ceiling, although infor!ation is difficult to get e en fro! the W B."port su sidies ha e been used by India since !id%2001 to pro!ote e$ports ofrice held by the go ern!ent @ood 2orporation of India. ccording to the W B, Indiais not eligible to use e$port subsidies on rice, but the country clai!s that under theE- ' rticle )%4( the country is e$e!pt fro! co!!it!ents on e$port subsidies for!ar;eting, processing and transportation. While this position is +uestionable, the

country has to date not been challenged on that account by other countries in the W B.

RESTRICTIONS ON EXPORTS

he Co!!erce DinistryJs decision per!itting e$port of up to 10 la;h tonnes 'lt(of rice to frican countries through parastatals is sub#ect to the ship!ents containing a!ini!u! 25 per cent bro;ens content.


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G he rice to be e$ported shall be with a !ini!u! of 25 per cent of bro;ens , the?irectorate :eneral of oreign radeJs '?: ( notification, dated Day /, has said.GBn the other hand, you ha e a condition of a !ini!u! e$port price 'D


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2004%05 3,140.00 1,00).002005%0/ 2, *).00 1,0 0.00200/%0 2,543.00 1,13).00200 %0* 2, /2.00 */4.00

It is seen fro! the abo e table that e$port price of bas!ati and non% bas!ati ricehas fluctuated significantly year after year. he reason for fluctuation in a erage e$port

price of rice is attributed to different quantit( and qualit( of rice e"ported todifferent countries durin! different (ears. particular country !ay i!port a

particular +uality@grade of rice in one year and the sa!e country !ay i!port another+uality@grade of rice during ne$t or subse+uent years. hus, different +uality and+uantity of rice e$ported to different countries at different e$port price rate !ay

probably be the reason for fluctuation of a erage e$port price of rice in India.

EXPORT EARNINGS FROM RICEhe e$port earnings fro! the e$port of total rice '6as!ati and other than

6as!ati( during 1))*%)) accounted for 4.38 of total national e"port earnin!s . hetotal earnings fro! 6as!ati -ice during 2005%0/ were 1.33 of total national e$portearnings. 9i!ilarly, e$port earnings fro! agricultural e$ports during 2005%0/ were1 .*1 of total national e$port earnings. he percentage share of rice e$ports to thetotal agricultural e$ports during was 24.5* in which the share of 6as!ati -ice was

.5 . his is !ore clearly shown in the following table which shows the e$portearnings of the countryA

Item ear 005-06otal =ational $ports 1,41,/03.53 -s. croresotal gricultural $ports 25,224./3 -s. croresotal $ports of -ice /,200.*0 -s. croresotal $ports of 6as!ati -ice 1,**/.25 -s. crores


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bas!ati production. ach year, India produces nearly 2.25 la;h tonnes of rice. l!ost1.25 la;h tonne is consu!ed by IndiaJs residents. he rest is left for e$ports. hecountries were 6as!ati rice is e$ported include 9audi rabia, E , uropean Enioncountries, E9 , EH, :er!any, ustralia, ustria, -ussia, 9ingapore, Iran, Huwait,6ehrain, 9pain, Italy, rance, ?en!ar; and =orway.

ccordin! to a latest report ( %>; , till @e ruar( 006, asmati e"porthad alread( crossed one million tonne mar& and stood at 11.4 la&h tonne, hichhas een 'alued at :s ,775 crore.

ear ise >"port of *asmati :ice

>"port of *asmati riceear Huantit( C000 tonnes $alue :s. in 2rores

2002%03 5)3.32 1,/*5./22003%04 /00./0 1,*//.25

2004%05 NN 2142.002005%0/ 10.2) NN200/%0 1140.00 2 5.00

EXPORT OF NON-BASMATI RICE FROM INDIA

India is also e$porting a substantial +uantity of non%bas!ati rice to ariouscountries in the world. "owe er, the e$port of non%bas!ati rice has been fluctuatingyear to year due to weather conditions affecting the production of non%bas!ati rice. he

e$port of non%bas!ati rice fro! India was on its pea; during 004-05 and a total+uantity of 45.41 la&h metric tons was e$ported to different countries in the world.

gain the e$port crossed to 43.66 la&h metric tons during 006-07 , but duringsubse+uent years, the e$port of non%bas!ati rice again ca!e down significantly due to

arious reasons. he c ountries where Non-Basmati Rice is exported include 9audi rabia,6angladesh, ustralia, 6ahrain, thiopia, "ong Hong, Horea, 9ri%7an;a, Daldi es,Dauritius, E. . ., Dalaysia, Fatar, =epal, Indonesia, 9o!alia, 9ingapore, etc.

ear ise >"port of "port of


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CASE STUDY

In late 1)) , an !erican co!pany -ice ec Inc. was granted a patent by the E9 patent office to call the aro!atic rice grown outside India 6as!ati . -ice ec Inc. had been trying to enter the international 6as!ati !ar;et with brands li;e Has!ati and

e$!ati described as 6as!ati%type rice with !ini!al success. "owe er, with the6as!ati patent rights, -ice ec would be able to not only call its aro!atic rice 6as!atiwithin the E9, but also label it 6as!ati for its e$ports. his has gra e repercussions forIndia and


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In the presence of widespread uprising a!ong far!ers and e$porters, the nationof India as a whole felt confident of being able to successfully challenge the 6as!ati

patent by -ice ec Inc. he law fir! representing India in the dispute, =a!ar and =uri ,criticised the procedures for granting patents in the E9 clai!ing it is dia!etricallyopposite to the one followed in India and urope. ccording to the!, India firste$a!ines a patent application, then widely publishes it for third parties to challenge,and only then grants the patent. "owe er, the E9 ;eeps the patent application a closelyguarded secret and grants it without allowing other parties to challenge it.

Indians feel that the E9 go ern!ent s decision to grant a patent for the pri&ed6as!ati rice iolates the International reaty on #rade :elated Intellectual %ropert(:i!hts ' -I


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CONCLUSION

India is one of the richest countries in the world India in ter!s of possessingtre!endous di ersity in rice arieties. here are different arieties of rice%depending onthe weather, soil, structure, characteristics and purposes.

he G!ultifunctionality of agriculture in ter!s of en iron!ental, social andcultural concerns is being used to defend the per!anence of blue and green bo$

pay!ents. In Oapan, !ost of the e!phasis on !ultifunctionality and food security is inrelation to rice. In de eloped countries where rice is a non%!arginal crop, theeli!ination of blue or green bo$ support would considerably i!pair the sector. -ice

production sites are often the natural habitat of a wide ariety of birds and plants. Water!anage!ent in ricelands ensures that the soil desalination process essential to the!aintenance of land fertility ta;es place. n iron!ental concerns are conse+uently afre+uently used weapon in defence of the sector.

ood safety is not particularly rele ant to rice, although there is increasingconcern regarding :DBs 'genetically !odified organis!s(. While so!e rice arietiesare being de eloped with new genes 'e.g. carotene%enriched rice(, they are not yettraded internationally.

ccording to ?r. -icharia, one of the !ost e!inent rice scientists of the world,400000 arieties of rice e$isted in India during the 8edic period. "e esti!ated that,e en today 200000 arieties of rice e$ist in India which is indeed an e$ceptionally highnu!ber. his !eans that e en if a person eats a new rice ariety e ery day of the year


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he has to li e for o er hundred years without reusing a ariety. ery ariety has aspecific purpose and utility. he har esting area of rice in India is the world s largest.

-ice is an i!portant aspect of life in the 9outheast and other parts of sia. orcenturies, it has been the cornerstone of their food and culture. ?uring this period,far!ing co!!unities throughout the region de eloped, nurtured, and conser ed o er ahundred thousand distinct arieties of rice to suit different tastes and needs.

-ice is a !a#or food staple and a !ainstay for the rural population and their foodsecurity. It is !ainly culti ated by s!all far!ers in holdings of less than 1 ha. -ice isalso a Gwage co!!odity for wor;ers in the cash crop or non%agricultural sectors. hisduality has gi en rise to conflicting policy ob#ecti es, with policy%!a;ers inter eningto sa e far!ers when prices drop, or to defend consu!er purchasing power when thereare sudden price increases.

-ice is ital for the nutrition of !uch of the population in sia, as well as in7atin !erica and the Caribbean and in frica> it is central to the food security of o erhalf the world population, not to !ention to the culture of !any co!!unities. -ice is

therefore considered a Gstrategic co!!odity in !any countries and is, conse+uently,sub#ect to a wide range of go ern!ent controls and inter entions.

AGENCIES EXPORTING RICE

1. 9"-I7 A n I9B )001%2000 Certified Co!pany dealing in Indian long grainwhite bas!ati rice, brown bas!ati rice.

. 9-I : O = = :-B DI779 'I=?I (


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PRIMARY DATA

INFORMATION ON THE COMPANY

he organi&ation we isited is a rice e$port !ill na!ed Darari :ice ill>nterprises.

It is situated in =allasopara in hane district of Daharashtra, India.

Dr. Harari is the owner of the fir!.

hey are rice, grain !erchant and co!!ission agent.

Harari -ice Dill nterprises deals in long grain white bas!ati rice, brown6as!ati rice and bro;en rice.

Karari i#e Mill .nter rises6ass oad allaso ara (W)8hane140 :03 Maharashtra'

$$$'indianri#ee orts'#o&
http://www.indianriceexports.com/http://www.indianriceexports.com/


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$$$ 'agri#ulture1industry1india'#

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25209640 rice export project

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