There is a need for reforms in the field of rice business.
Despite some significant sector-specific differences, government support in rice production, favorable monsoon, increasing number of rice processing companies and rising exports have positively impacted the Indian rice industry, rating agency Infomerics Valuation and Rating said in a report.
Report – Rice Industry – Emerging Contours India is optimistic about the future of the rice industry. This highlights the need for a comprehensive rice strategy with focus on new systems, technologies and new varieties of rice seeds. It lists government initiatives to bring about structural changes in the region and effective ways to reduce the extent of dependence on monsoon uncertainties.
It has been said in the report that the production of rice is surrounded by many types of risks. High fertilizer prices, depleting water levels, rising agricultural input prices and asymmetric market price information are risk factors. Other issues include high rental charges of farm machinery, poor transportation, poor consultancy facilities and adequacy, timeliness and cost of credit.
The report said that there are three main risks to the rice sector in the country – lack of containers, low rainfall and low MSP coverage. Around 25,000-30,000 containers are lying at ports due to disputes with customs etc. Basmati rice exports have suffered huge losses as 80 per cent is shipped through containers. Irregular rains may affect crop production. Farmers have planted hectares of land with rice anticipating less rain this year, although the India Meteorological Department has predicted that the country will receive normal monsoon rains in 2021.
Can’t get the benefit of MSP
Poor participation of private traders, poor infrastructure, ignorance etc. The APMCs benefit from inadequate MSP in paddy households reducing their yield from 17 per cent (2013) to 2.7 per cent (2019) in paddy households. The report states that paddy/rice production in India cannot be considered in silos; It is inextricably linked to the wider question of land rights and land ownership, food security, political stability, protection of natural ecosystems and agricultural diversification. Stringent international food quality and safety standards from the European Union, the US and Japan can help increase the quantity and quality of organic produce.
As Indian agriculture remains a gamble in monsoon, risk mitigation measures, crop insurance, price stabilization measures, pressure on Geographical Indications (GI) of Basmati rice in India and optimum utilization of agro-climatic conditions can reduce dependence on monsoon. could.
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