A SYB.M.

S PROJECT ON

Submitted to Prof. Jalpa Parekh of BMS Department

Group members:

Danish Choudhari (39) Jaffer Choudhari (40) Khatija Daudi (05) Mayuri Joshi (07)

We are greatly honoured and ri!ileged to than" and a#"no$ledge those eo le $ho ha!e #ontri%uted dire#tly or indire#tly in &a"ing this roje#t su##essfully' (irstly $ith gratitude) $e $ould than" *ur +rin#i al ,ir) +rof' -'.' /a"da$ala for gi!ing us the o ortunity for &a"ing this roje#t and e0tra#ting good "no$ledge fro& this roje#t' We also than" *ur Joint1+rin#i al) +rof' Ka&ala -'2 3i#e1+rin#i al +rof' Malli"a and *ur 4M, Co1ordinator) +rof' 5enu K' in this #onte0t' With i&&ense gratitude) $e $ould li"e to than" *ur ,u%je#t Co1ordinator) +rof' Jal a +are"h) for guiding us throughout the roje#t' We $ould also than" all the sour#es fro& $ho& $e ha!e #olle#ted the ri&ary data and lastly our grou &e&%ers $ho ha!e %een su orti!e and #o1o erati!e throughout'

SR. NO.
1. 2. 3. 4. 5. 6. !. %. '. 1(. 11. 12. 13. 14. 15.

CONTENTS
Introduction Origin and history of Rice in India Production of Rice in India Classification of Rice Branding of rice Factors influencing rices of rice Pro"le#s of Rice e$ orts fro# India &uggestions for sustaining Rice e$ orts Pros ects of Rice e$ orts fro# India Incenti)es to Rice e$ orters of India Restrictions on *$ orts &tatistics + Calculations of Rice *$ orts fro# India Case &tudy Conclusion ,gencies e$ orting rice

PG.N O.
1 2 2 3 5 6 7 8 9 10 11 12 15 17 18

16. 1!.

Pri#ary datai. Infor#ation on .arari Rice /ills ii. 0uestionnaires Bi"liogra hy

18 19

INTRODUCTION
Worldwide, India stands first in rice area and second in rice production, after China. It contributes 21.5 percent of global rice production. Within the country, rice occupies one-quarter of the total cropped area, contributes about 40 to 43 percent of total food grain production and continues to play a ital role in the national food and li elihood security syste!. "owe er, India did not beco!e a !a#or rice e$porting country for a long ti!e. Its share in world rice trade, !ainly in the for! of s!all% olu!e e$ports of highly pri&ed bas!ati rice, was insignificant '5 percent(. It was not until the !id%1)*0s that the +uantu! of e$port started to grow, fro! 110000 tonnes in 1978-79 to 890613 tonnes in 1994-95 and to a record 5.5 million tonnes in 1995-96, second only to ,hailand 'at 5.) !illion tonnes(. -ice is one of the important cereal food crops of India. -ice contributes about 43. of total food grain production and 4/. of total cereal production in the country. It continues to play ital role in the national e$ports. ,he percentage share of rice in total national e$port was 4.5. during 2005%0/. ,he percentage share of agriculture e$port in total national e$port was 1*.25., whereas the percentage share of rice e$port in total agriculture e$port was 24./2. during 2005%0/. ,hus, rice e$port contributes nearly 35 of total a!riculture e"port fro! the country.

0!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 countries in the world in ter!s of possessing tre!endous di'ersit( in rice 'arieties. ,here are different arieties of rice%depending on the weather, soil, structure, characteristics and purposes. -ice is grown under a da!p war! cli!ate. 0 te!perature range of 201C to 32.21 C '/*1 3 to 1001 3( 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 to tolerate a wide range of soil reactions, but has a preference of acidic soils. -ice culti 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. 0bout /00 i!pro ed arieties of Indica rice ha e been released for culti ation since 1)/5.

ORIGIN AND HISTORY OF RICE IN INDIA

India is an i!portant center of rice culti ation. ,he rice har esting area in India is the world4s largest. ,he two !a#or rice arieties grown worldwide today are /r(0a sati'a indica and Oryza sativa japonica. 0ccording to research studies, they owe their origins 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 in the area co ering the foothills of the 5astern "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 in the north and west and date fro! around 1000 *2. <erennial wild rices still grow in 0ssa! and =epal. It see!s to ha e appeared around 1400 *2 in southern India after its do!estication in the northern plains. It then spread to all the fertile allu ial plains watered by ri ers. Culti ation and coo;ing !ethods are thought to ha e spread to the west rapidly and by !edie al ti!es, southern 5urope saw the introduction of rice as a hearty grain. 9o!e says that the word rice is deri ed fro! the ,a!il word 34risi5. -ice is first !entioned in the 6a-ur $eda 7c. 1500-800 *28 and then is fre+uently referred to in 9ans;rit te$ts. In India there is a saying that grains of rice should be li;e two brothers, close but not stuc; together. -ice is often directly associated with prosperity and fertility> hence there is the custo! of throwing rice at newlyweds. In India, rice is always the first food offered to the babies when they start eating solids or to husband by his new bride, to ensure they will ha e children.

PRODUCTION OF RICE IN INDIA

3ro! a nation dependent on food i!ports to feed its population, India today is self%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 of liberal India. 0griculture and allied acti ities constitute the single largest contributor to the :ross ?o!estic <roduct, al!ost 33 of it. 0griculture is the !eans of li elihood of about t9o-thirds of the 9or& force in the country. ,he de!and for rice in India is pro#ected at 12* !illion tonnes for the year 2012 and will re+uire a production le el of 3,000 ;g@hectare significantly greater than the present a erage yield of 1,)30 ;g@hectare. :o ern!ent of India is targeting to achie e production of 12) !illion tonnes of rice by 2011%12 with the growth rate of 3.2. along with other food grains. ,he production of rice in India has shown an increasing trend which is e ident fro! the ,able gi en belowA

%:/;+2#I/<
6>4: 2000%01 2001%02 2002%03 2003%04 2004%05 2005%0/ 2002%0* %:/;+2#I/< 7in mn tonnes8 53./3 24.2) *2.54 */.0* *)./* *4.)* )3.0*

2/<=+,%#I/<
6>4: 2000 2001 2002 2003 2004 2005 200/ :I2> 7in !rams8 220.0 204.) 215.0 201.* 205.4 20/.4 20*.1

=ource? @ederal ministr( of 4!riculture, Ao't. of India

CLASSIFICATION OF RICE
India is one of the i!portant countries in the world in e$port of rice. India4s e$ports are e$pected to go up further during current financial year. "ence, Indian rice e$ports are set to reach second place in the world !ar;ets after ,hailand edging out 8ietna! in the process as per the report of the 3ood and 0gricultural 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!atic fine +uality rice of the world trade and it fetches good e$port price in the international !ar;ets. In fact, 6as!ati rice is a gift fro! CDother =atureC to the Indian sub%continent and grows in the Indo-Aan!atic plains onl(. ,he !eaning of 6as!ati can be deri ed fro! B.asB which !eans aro!a and BmatiB !eaning sense. ,hus the word 6as!ati i!plies Cin!rained aromaC. 9o it is the aro!a that gi es bas!ati its no el characteristics un!atched by any other rice grain anywhere else in the world. Dany scented arieties of rice ha e been culti ated in the Indian sub% continent fro! ti!e i!!e!orial but bas!ati distinguishes itself fro! all other aro!atic rice due to its uni+ue aro!atic characteristics coupled with sil;y te$ture of its long grain. =ow, it is still considered Bdream of the massesB and Bcharm of the classesB. Aolden par.oiled rice :a9 *asmati =il&( ra9 .asmati

:ulf region re!ains the !a#or !ar;ets for Indian bas!ati rice and inside :ulf, 9audi 0rabia accounts for the !a#or chun; of bas!ati i!ports fro! India. <a;istan is the sole co!petitor for India in the international !ar;et for bas!ati rice. ?uring 2005% 0/, 200/%02 and 2002%0*, total +uantities of bas!ati rice e$ports fro! India were 5.)* la;h !illion tonnes, /.3* la;h !illion tonnes and *.52 la;h !illion tonnes in which the percentage share of 0sia was *5./)., *2.12. and 23.3*. respecti ely. ,he e$port to =orth 0!erica has also increased in the sa!e order fro! 1.3). during 1))*%)) to 5.2*. during 2000%01. "owe er the e$port to other countries re!ains constant with slight fluctuation fro! year to year. India4s !a#or !ar;ets for bas!ati rice e$ports ha e been =audi 4ra.ia, 4ustralia, 4ustria, *el!ium, *ahrain, @rance, Aerman(, +.D., ;enmar&, +.=.4., 2anada, *el!ium, Du9ait, Ital(, /man, 6emen, <etherlands, Eordan, Indonesia, etc. In fact, 9audi 0rabia traditionally has been the largest !ar;et for Indian bas!ati rice.

B. NON-BASMATI RICE
Da#or destinations for India4s non%bas!ati rice e$ports are *an!ladesh, 4ustralia, *ahrain, >thiopia, ;-i.outi, @rance, Aerman(, +.D., Fon! Don!, Dorea, =ri-Gan&a, ,aldi'es, ,auritius, ,ala(sia, <i!eria, I'or( coast, Indonesia, <epal, /man, Hatar, :ussia, =outh 4frica, =audi 4ra.ia, =omalia, =in!apore, +.4.>. 6.4.:., etc. Co!peting countries in the international !ar;ets for India for the e$ports of non%bas!ati rice are ,hailand, 8ietna!, 6ur!a, China, E.9.0. and <a;istan. Da#or +uantity of non%bas!ati rice is e$ported to 0sia continent. ?uring 2004%05, 2005%0/, 200/%02 and 2002%0*, a total +uantity of ).5) la;h !illion tonnes, ).2* la;h !illion tonnes, 2*.25 la;h !illion tonnes and 2.0* la;h !illion tonnes were e$ported to 0sia continent which were 4*.20., 51.//., /5.*/. and 5/.2*. of total e$port of non%bas!ati rice fro! India to 0sia, respecti ely. 0fter 0sia, non%bas!ati rice is e$ported fro! India to 0frica continent. ?uring 2004%05, 2005%0/, 200/%02 and 2002%0*, a total +uantity of non%bas!ati rice e$ports fro! India to 0frica were 5.3) la;h !illion tonnes, 5.5) la;h !illion tonnes, 10./2 la;h !illion tonnes and 3.24 la;h !illion tonnes, in which the percentage share of 0frica continent was 22.0)., 31.14., 24.44. and 25.23. respecti ely of total e$port of non% bas!ati rice fro! India. =e$t to 0frica continent, 5urope continent has been i!porting non%bas!ati rice fro! India during 2004%05, 2005%0/, 200/%02 and 2002%0*. ,he e$ports of non%bas!ati rice fro! India to other continents are ery !eager. ,he e$ports to 5urope continent during the last few years were an a erage !ore than 1.5 la;h !illion tonnes per year 2. PARBOILED RICE Indian is e$porting parboiled rice to Diddle 5ast and 0frican countries, as these countries prefer parboiled rice.

BRANDING OF RICE
It4s sign of the changing ti!es. ,he i!print of a brand is getting bolder, e en in a down%to%earth co!!odity !ar;et li;e rice. 0long with increasing consu!er awareness and changing preferences, the rice industry is witnessing change. =o !ore is the friendly neighbourhood grocer4s 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 as e$port !ar;ets. ,he brand is the new !antra for success and bas!ati, also ;nown as the 4;ing of rice4, is in the !idst of the action.

LAL QILLA TOPS THE LIST

India accounts for about 20 percent of the world4s bas!ati production of 1.25 !illion !etric tonnes. Bf this, nearly 3.5 la;h !etric tonnes is consu!ed in India and the 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 been growing at the rate of 20 per cent a year. ,he Indian .randed .asmati mar&et is esti!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. ,he trendsetter has been 4mar =in!h 2ha9al9ala of 4mritsar , whose 7al Fuila brand is ac;nowledged as the best selling rice brand in India, notching up sales of -s 100 crore a 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 in consu!er awareness and shift in the position of custo!er fro! a !ere buyer to the GHing Bf the Dar;etI, it has beco!e ut!ost essential to gi e a na!e to the essential food crop of India to sur i e in the international !ar;et. ,he brand is the new !antra for success and bas!ati, also ;nown as the 4;ing of rice4, is in the !idst of the action.

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 of 20 percent a year. ,he Indian branded bas!ati !ar;et is esti!ated to be worth between -s. /00%200 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. 9o!e fa!ous brands a ailable in India, +=4, 2anada, +.D., <or9a(, ;enmar&, Folland, =9eden, 4ustralia, Du9ait, =audi 4ra.ia, +4> and !any other countries are as follows A 7al Filla ?ouble ?ia!ond 6rand 6as!ati -ice -esha! brand ,ilda 6as!ati rice <ari 6as!ati -ice 0dora 6as!ati ?awat 6as!ati Hohinoor 6as!ati 6lue 7abel 6as!ati 7al "a eli 6as!ati

FACTORS INFLUENCING THE PRICE OF RICE

1. )eather? -ole of weather in rice production is i!!ense. ,e!perature, rainfall and soil !oisture are the i!portant para!eters that deter!ine the crop condition. 3urther, natural cala!ities can also affect crops. Dar;ets ;eep watch of these de elop!ents. 1. ,inimum =upport %rice? Changes in the !ini!u! support prices 'D9<( by the go ern!ent also ha e i!!ense i!pact on the price of rice. 3. =u.stitute %roduct? 0 ailability of substitute products at cheaper rate !ay lead to wea;ness in de!and. ,his situation happens especially when the !ain products price tends to beco!e higher. 4. 2onsumption? -ice consu!ption depends on two factors % population and inco!e. 3or e$a!ple, rice is the staple food of 0sia. 7ow%inco!e groups consu!e !ore rice according to the per capita inco!e increase. 6ut as the inco!e increases, there arri es a point when the consu!ption starts to dip. Inco!e growth and reduction in population result in a low consu!ption of rice.

5. =easonal c(cles? 9easonal cycles are present in rice culti ation. <rice tends to be lower as har esting progresses and produce starts co!ing into the !ar;et. 0t the ti!e of sowing and before har esting price tends to rise in iew of tight supply situation. 6. ;emand? I!port de!ands as well as do!estic de!and influences the price of rice in do!estic as well as international !ar;et. 7. <e9 technolo!(? 6rea;through in the technology !ay increase the producti ity and would lead to !ore supply. ,his !ay bring so!e softness in the price.

PROBLEMS OF RICE EXPORT FROM INDIA

India is facing stiff co!petition in the world !ar;ets for e$port of rice. 6esides, there are !any do!estic proble!s for rice e$porters. If these internal proble!s are rela$ed to the e$tent possible, the e$porters !ay find easy way to boost rice e$port and such !easures will go a long way to sustain the e$ports. =ome of the ma-or pro.lems are? 1. Fi!h ta" rate? Indian rice is costlier in the international !ar;et as co!pared to other co!peting countries in the world because of imposin! of arious ta"es on rice e$ports. ,hese ta$es include% %urchase #a" 7on indirect e"port8, ,ar&et @ees, :ural ;e'elopment @und, 4dministrati'e 2har!es, etc. as per the state :o ern!ent policy. In <a;istan, rice !eant for e$ports specially the branded ones, duties are e$tre!ely low or duty free. 1. ,inimum =upport %rice? ,he ,inimum =upport %rice 'D9<( for paddy is enhanced e ery year by the :o ern!ent of India. ?ue to D9<, far!ers are free to sell in the open !ar;et or to the :o ern!ent at the D9< depending on what is !ore ad antageous to the!. 3. Fi!h production cost? ,he production cost goes up due to increase in the cost of inputs used for paddy culti ation. ,hat is why when paddy is con erted to rice, it beco!es costlier !a;ing it internationally unco!petiti e. 4. Fi!h competition in international mar&ets? -ice production !eant for e$port purpose is ha ing subsidy in other countries li;e #hailand, $ietnam and %a&istan , which reduces the cost of production and thereby reducing the cost of rice. ,herefore, the e$port price of rice of such countries is more competiti'e in the international !ar;ets co!pared to Indian rice.

5. Inelastic prices? Indian rice prices are inelastic due to relati ely hi!h cost of production whereas the !a#or rice producing nations ha e decreased the price to capture the international !ar;ets. 6. Gac& of proper infrastructural facilities? -ice !ills ha e not .een full( moderni0ed to ensure high !illing reco ery and reduce the percentage of bro;en rice. 0part fro! this, there is lac; of proper arrange!ents for production of sufficient +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. <ost har est handling of produce is another i!portant aspect. :enerally, far!ers are har esting the crop at different !oisture le els and &eepin! the produce at hi!her moisture le el for a longer period will i!pair the intensity of aro!a. In absence of genetically pure seed of bas!ati arieties, a ariation in plant height, grain si&e and !aturity of the crop is found. ,his is one of the !a#or reasons for poor +uality of bas!ati rice.

SUGGESTIONS FOR SUSTAINING RICE EXPORT

-ice e$port constitutes a considerable share in the national e$ports. Heeping in iew the i!portance of rice in the national e$port ite!s, concerted efforts are re+uired to be !ade to further pro!ote the e$port of rice. ,here is a good scope for India to ta;e ad antage of the new trade opportunities for pro!oting the e$port of rice. ,his can be achie ed if production is !ade as per the re+uire!ents of international !ar;ets by increased in est!ent in -esearch and ?e elop!ent coupled with e$port friendly trade policies. ,he following are few of the !easures suggested to sustain the e$port of rice in futureA

1. 6reeding progra!!e !ay be initiated to de elop high yielding e$port +uality rice '6as!ati, =on%6as!ati, 7ong :rain -ice, etc.( to enable the e$porters to sustain their e$port in future. 1. 9ur ey !ay be conducted to identify e$port +uality belts@&ones for production of rice to !eet the re+uire!ent of e$ports. 3. 5$tension acti ities !ay be strengthened to educate the culti ators for production of +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$porters to co!pete with co!peting countries in the international !ar;ets. 5. <roper arrange!ents !ay be !ade for procure!ent and processing of rice e$port purpose as per the re+uire!ent of international !ar;ets. 6. <roper arrange!ents !ay be !ade for production of pure +uality seeds and !a;ing the! a ailable to the far!ers at subsidi&ed rates. 7. In case of bas!ati arieties, crop should not be allowed to lodge and there should be proper water !anage!ent in the field. If these are not attended properly, such situation !ay affect both aro!a and linear ;ernel elongation. 8. <ost har est operation is also ery i!portant. 0fter har esting, if produce is allowed to re!ain at higher !oisture le el for a longer period, it will i!pair the intensity of aro!a.

PROSPECTS OF RICE EXPORT FROM INDIA

India is facing stiff co!petition in the International !ar;ets fro! ,hailand, 8ietna!, E.9.0. and <a;istan. ,here was a considerable growth in the e$port of rice fro! India during the recent past, particularly in the case of non%bas!ati rice. ,here are se eral factors responsible for this growth. In fact e$ports depend not only on our ability to sell, but also on the willingness of i!porters to buy. 9o!eti!es !a#or !ar;ets@i!porters used to cut down their i!port due to their internal econo!ic proble!s or good crop har est and trade also cut down in entories and people reduce spending. 0ll these !easures reduce i!ports during that particular year. ,he prospects of e$port of bas!ati and non%bas!ati rice fro! India are discussed herewithA

BASMATI RICE

0wareness about bas!ati rice is spreading a!ong different strata of the society in the country and abroad. 6as!ati rice is possessing uni+ue grain, coo;ing, eating and digesti e +ualities. "ence, !a#ority of people in the country and abroad ha e de eloped li;ing for bas!ati rice. 6ecause of its superfine +uality, bas!ati rice is !ost preferred and also !eant for high pre!iu! alue in the national and international !ar;ets. ,hus, bas!ati rice is also stated to be 4<earl4 of rice. Co!!ercially, #araori *asmati, *asmati-370 and *asmati #(pe-3 are ery popular. 0ll these three arieties are si!ilar in starch characteristics but based on grain di!ensions ,araori 6as!ati is preferred !uch o er 6asa!ati%320. 9i!ilarly 6asa!ati% 320 is preferred !ore o er 6as!ati ,ype%3. <usa 6as!ati%1 has been well accepted by the trade and there are good prospects for e$port. In fact, <usa 6as!ati%1 is at present !ost profitable ariety in rice, in spite of being highly susceptible to !a#or insects, pests and diseases. Ender proper crop !anage!ent condition far!ers can get 4%/ tonnes paddy yield per hectare. ,his ariety is !uch fa oured by the far!ers, traders and consu!ers. With the e ery co!ing year, do!estic as well as international de!and for bas!ati rice is increasing. If desired aro!a in bas!ati rice along with other +uality characteristics is !aintained, these !easures !ay help to boost the e$port of bas!ati rice fro! India.

NON-BASMATI RICE
=on%bas!ati rice e$ports ha e also suffered !uch due to the co!petition fro! e$porting countries li;e ,hailand, 8ietna! and <a;istan because of their low cost of production. In the recent past e$port of non%bas!ati rice was fluctuating year after year due to arious reasons. If rice e$porters !ade their sincere efforts with :o t. supporting e$port policy, non%bas!ati rice e$port is e$pected to increase in future.

INCENTIVES TO RICE EXPORTERS OF INDIA

8arious incenti es are gi en to the e$porters of rice, since -ice is !ost i!portant cereal crop of India. 0lso to !a;e Indian -ice co!petiti e in the international !ar;ets, :o ern!ent of India ;eeps on co!ing with new e$port friendly policies as well as incenti es for the rice e$porters. ,he decision of the Enion :o ern!ent to allow non%bas!ati rice e$ports to 21 0frican countries to the e$tent of one !illion tonnes is a welco!e !o e, as it will help the !illers and the far!ers, but clear guidelines ha e to be for!ulated and tenders should be called for to ensure transparency, according to 8inod 0garwal, <resident of 0< -ice 5$portersJ 0ssociation.

"e said in an inter iew here on ,uesday that the ?irectorate%:eneral of 3oreign ,rade had issued a notification earlier this !onth allowing rice e$ports to 21 0frican countries. ,hree :o ern!ent agencies % ,,#2, =#2 and %>2 % had been appointed to facilitate e$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. ,enders should be floated and all should be gi en a fair chance,C said 0garwal. "e said that after i!position of ban on rice e$ports in 2002 so!e fi e la;h tonnes of rice was allowed to be e$ported to 6angladesh in go ern!ent%to%go ern!ent deals but Conly three or four !a#or e$porters grabbed the contracts.C "e said the current situation in 0ndhra <radesh !ar;et was causing concern, as the 3CI was not buying rice fro! the !illers and the latter were therefore not willing to buy paddy fro! the far!ers. C,he 3CI is not in the !ar;et and e$ports are not allowed. ,here is se ere scarcity of storage space, as wheat fro! the =orth is du!ped in the godowns here. ,herefore, there is a lull and crisis in the !ar;et.

EXPORT SUBSIDIES
5$port subsidy reduction co!!it!ents ha e been !ade under the +ru!ua( :ound 4!reement on 4!riculture 7+:448 .( 2olom.ia, Indonesia, +ru!ua(, the >2 and the +nited =tates. ,he actual use of e$port subsidies has fallen short of the aggregate ceiling, although infor!ation is difficult to get e en fro! the W,B. <roposals for further reduction co!!it!ents are li;ely to !eet opposition fro! the 5C. Bther issues ha e arisen in relation to e$port co!petition in rice, in particular the granting of e$port credits by the Enited 9tates of 0!erica. It should be noted, howe er, that e$port credits are also co!!only used in go ern!ent%to%go ern!ent deals, although there is little infor!ation a ailable in connection with such practices. >"port su.sidies ha e been used by India since !id%2001 to pro!ote e$ports of rice held by the go ern!ent @ood 2orporation of India. 0ccording to the W,B, India is not eligible to use e$port subsidies on rice, but the country clai!s that under the E-00 '0rticle )%4( the country is e$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 0frican countries through parastatals is sub#ect to the ship!ents containing a !ini!u! 25 per cent bro;ens content.

G,he rice to be e$ported shall be with a !ini!u! of 25 per cent of bro;ensI, the ?irectorate :eneral of 3oreign ,radeJs '?:3,( notification, dated Day /, has said. GBn the other hand, you ha e a condition of a !ini!u! e$port price 'D5<( of K1,100 a tonne below which no bas!ati rice can be shipped out. 0nd now, the sa!e Co!!erce Dinistry is saying that you can e$port non%bas!ati rice only if it has a !ini!u! 25 per cent bro;ens, which corresponds to the !ost co!!only consu!ed grades hereI, said Dr. 8i#ay 9ethia, for!er <resident of the 4ll-India :ice >"porters5 4ssociation 74I:>48. 0ccording to hi!, if the :o ern!ent was ;een to gradually ease restrictions on rice e$ports, the best way would ha e been to lower the D5< and !a;e it applicable to both bas!ati as well as non%bas!ati grain. G6y this, you will ensure that only high%end rice, which includes pre!iu! non%bas!ati arieties such as <onni, 9warna Dasuri and -ed Datta, is e$ported, while the rice consu!ed by ordinary seg!ents re!ains within the countryI, he added. ,he 10 lt of rice per!itted to be e$ported has been allocated a!ong 21 countries. ,his includes 1,44,)00 tonnes to Cote ?JI orie, 1,41,300 tonnes to 9enegal, 1,12,100 tonnes to =igeria, )/,000 tonnes to 7iberia, 22,400 tonnes to ,ogo, /*,*00 tonnes to :hana, 4*,300 tonnes to 5gypt, 3*,500 tonnes to 9ierra 7eone, 3/,250 tonnes to :a!bia, 24,200 tonnes each to 6ur;ina 3aso, Dali, 9o!alia, 6enin, :uinea 6issau, Do&a!bi+ue and La!bia, 21,200 tonnes to Ca!eroon, 15,000 tonnes to Dauritius, 12,100 tonnes each to ?#ibouti and Lan&ibar, and 5,550 to ,unisia.

STATISTICS AND CALCULATION OF RICE EXPORTS FROM INDIA

AVERAGE EXPORT PRICE AND ITS CALCULATION ,otal +uantity of rice e$ported and its alue reali&ed in rupees ha e been ta;en separately for bas!ati and non%bas!ati rice and then the alue of e$port di ided by the +uantity of rice e$ported to arri e at the a erage e$port price of rice per +uintal year wise for bas!ati M non%bas!ati. We gi e below a year wise representation of a erage e$port price of bas!ati rice and non%bas!ati rice in IndiaA *asmati :ice <on-.asmati :ice 6ear :s. %er Huintal :s. %er Huintal 2000%01 1,)52.00 25).00 2001%02 2,22).00 *1).00 2002%03 2,3*5.00 )/*.00 2003%04 2,*41.00 )3).00

2004%05 2005%0/ 200/%02 2002%0*

3,140.00 2,2*).00 2,543.00 2,2/2.00

1,00).00 1,020.00 1,13).00 */4.00

It is seen fro! the abo e table that e$port price of bas!ati and non% bas!ati rice has fluctuated significantly year after year. ,he reason for fluctuation in a erage e$port price of rice is attributed to different quantit( and qualit( of rice e"ported to different countries durin! different (ears. 0 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 RICE

,he 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. ,he total earnings fro! 6as!ati -ice during 2005%0/ were 1.33. of total national e$port earnings. 9i!ilarly, e$port earnings fro! agricultural e$ports during 2005%0/ were 12.*1. of total national e$port earnings. ,he percentage share of rice e$ports to the total agricultural e$ports during was 24.5*. in which the share of 6as!ati -ice was 2.5.. ,his is !ore clearly shown in the following table which shows the e$port earnings of the countryA Item 6ear 1005-06 ,otal =ational 5$ports 1,41,/03.53 -s. crores ,otal 0gricultural 5$ports 25,224./3 -s. crores ,otal 5$ports of -ice /,200.*0 -s. crores ,otal 5$ports of 6as!ati -ice 1,**/.25 -s. crores <ercentage share of 6as!ati to the ,otal -ice 5$ports 32.42. <ercentage share of -ice 5$ports to ,otal 0gricultural 24.5* . 5$ports

EXPORT OF BASMATI RICE FROM INDIA

6as!ati -ice, the leading aro!atic fine +uality rice in world trade, fetches good e$port price in international !ar;et for its three distinct +uality featureA pleasant aro!a, super fine grains and e$tre!e grain elongation. =early two third of 6as!ati -ice produced in India is e$ported. India accounts for about 20 percent of the world4s

bas!ati production. 5ach year, India produces nearly 2.25 la;h tonnes of rice. 0l!ost 1.25 la;h tonne is consu!ed by IndiaJs residents. ,he rest is left for e$ports. ,he countries were 6as!ati rice is e$ported include 9audi 0rabia, E05, 5uropean Enion countries, E90, EH, :er!any, 0ustralia, 0ustria, -ussia, 9ingapore, Iran, Huwait, 6ehrain, 9pain, Italy, 3rance, ?en!ar; and =orway. 4ccordin! to a latest report .( 4%>;4, till @e.ruar( 1006, .asmati e"port had alread( crossed one million tonne mar& and stood at 11.4 la&h tonne, 9hich has .een 'alued at :s 1,775 crore. 6ear 9ise >"port of *asmati :ice 6ear 2002%03 2003%04 2004%05 2005%0/ 200/%02 >"port of *asmati rice Huantit( 7C000 tonnes8 $alue 7:s. in 2rores8 5)3.32 1,/*5./2 /00./0 1,*//.25 NN 2142.00 210.2) NN 1140.00 2225.00

EXPORT OF NON-BASMATI RICE FROM INDIA

India is also e$porting a substantial +uantity of non%bas!ati rice to arious countries in the world. "owe er, the e$port of non%bas!ati rice has been fluctuating year to year due to weather conditions affecting the production of non%bas!ati rice. ,he e$port of non%bas!ati rice fro! India was on its pea; during 1004-05 and a total +uantity of 45.41 la&h metric tons was e$ported to different countries in the world. 0gain the e$port crossed to 43.66 la&h metric tons during 1006-07, but during subse+uent years, the e$port of non%bas!ati rice again ca!e down significantly due to arious reasons. ,he countries where Non-Basmati Rice is exported include 9audi 0rabia, 6angladesh, 0ustralia, 6ahrain, 5thiopia, "ong Hong, Horea, 9ri%7an;a, Daldi es, Dauritius, E.0.5., Dalaysia, Fatar, =epal, Indonesia, 9o!alia, 9ingapore, etc. 6ear 9ise >"port of <on-*asmati :ice from India 6ears 2003%04 2004%05 2005%0/ 200/%02 2002%0* >"port of <on-*asmati :ice Huantit( 7C000 tonnes8 $alue 7:s. in 2rores8 5/5.1) 225.4/ 44*.50 340.42 4,540.20 3,212.41 1,)*).04 1,)24.22 1,2)5.24 1,/*5.32

CASE STUDY
In late 1))2, an 0!erican co!pany -ice,ec Inc. was granted a patent by the E9 patent office to call the aro!atic rice grown outside India 46as!ati4. -ice,ec Inc. had been trying to enter the international 6as!ati !ar;et with brands li;e 4Has!ati4 and 4,e$!ati4 described as 6as!ati%type rice with !ini!al success. "owe er, with the 6as!ati patent rights, -ice,ec would be able to not only call its aro!atic rice 6as!ati within the E9, but also label it 6as!ati for its e$ports. ,his has gra e repercussions for India and <a;istan because not only will India lose out on the 45,000 tonne E9 i!port !ar;et, which for!s 10 percent of the total 6as!ati e$ports, but also its position in crucial !ar;ets li;e the 5uropean Enion, the Enited Hingdo!, Diddle 5ast and West 0sia. In addition, the patent on 6as!ati is belie ed to be a iolation of the funda!ental fact that the long grain aro!atic rice grown only in <un#ab, "aryana, and Ettar <radesh is called 6as!ati. 0ccording to the 4!ricultural and %rocessed @ood %roducts >"port ;e'elopment 4uthorit( '0<5?0(, India is the second largest producer of rice after China, and grows o er a tenth of the world4s wheat. -ice,ec Inc was issued the <atent nu!ber 5663484 on 6as!ati rice lines and grains on 9epte!ber 2, 1))2. 0ccording to ;r. $andana =hi'a, director of a ;elhi-.ased research foundation which !onitors issues in ol ing patents and biopiracy, the !ain ai! for obtaining the patent by -ice,ec Inc. is to fool the consu!ers in belie ing there is no difference between spurious 6as!ati and real 6as!ati. Doreo er, she clai!s the Btheft in'ol'ed in the *asmati patent is, therefore, threefold? a theft of collecti'e intellectual and .iodi'ersit( herita!e on Indian farmers, a theft from Indian traders and e"porters 9hose mar&ets are .ein! stolen .( :ice#ec Inc, and finall( a deception of consumers since :ice#ec is usin! a stolen name *asmati for rice 9hich are deri'ed from Indian rice .ut not !ro9n in India, and hence are not the same qualit(.B In an official release, the go ern!ent of India reacted i!!ediately after learning of the 6as!ati patent issued to -ice,ec Inc., stating that it would approach the E9 patent office and urge the! to re%e$a!ine the patent to a Enited 9tates fir! to grow and sell rice under the 6as!ati brand na!e in order to protect India4s interests, particularly those of growers and e$porters. 3urther!ore, a high le el inter%!inisterial group co!prising of representati'es of the ministries and departments of commerce, industr(, e"ternal affairs, 2ouncil for scientific and industrial research 72=I:8, 4!riculture, *io-technolo!(, 4ll India :ice >"porters 4ssociation 74I:>48, 4%>;4, and Indian 2ouncil of 4!ricultural :esearch 7I24:8 were !obili&ed to begin an in%depth e$a!ination of the case. ,he go ern!ent of India was particularly concerned about the patenting of 6as!ati.

In the presence of widespread uprising a!ong far!ers and e$porters, the nation of India as a whole felt confident of being able to successfully challenge the 6as!ati patent by -ice,ec Inc. ,he law fir! representing India in the dispute, =a!ar and =uri, criticised the procedures for granting patents in the E9 clai!ing it is dia!etrically opposite to the one followed in India and 5urope. 0ccording to the!, India first e$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 closely guarded secret and grants it without allowing other parties to challenge it. Indians feel that the E9 go ern!ent4s decision to grant a patent for the pri&ed 6as!ati rice iolates the International ,reaty on #rade :elated Intellectual %ropert( :i!hts ',-I<9(. ,he president of the 4ssociated 2ham.ers of 2ommerce '099BC"0D( said 6as!ati rice is traditionally grown in India and <a;istan and granting patent to it iolated the Aeo!raphical Indications act under the ,-I<9. 0s a result, it is safe to say 6as!ati rice is as e$clusi ely associated with India and <a;istan as Cha!pagne is to 3rance and 9cotch Whis;ey is to 9cotland. In the wa;e of the proble!s with patents that India has e$perienced in recent years, they ha e now reali&ed the i!portance of enacting laws for conser ing biodi ersity and controlling piracy as well as intellectual protection legislation that confor! to international laws. ,here was a widespread belief that -ice,ec Inc too; out a patent on 6as!ati only because of wea;, non%e$istent Indian laws and the go ern!ent4s philosophical attitude that natural products should not be patented. 0ccording to so!e Indian 5$perts in the field of genetic wealth, India needs to for!ulate a long%ter! strategy to protect its bio%resources fro! future bio%piracy and or theft. ,he type of !easure being utili&ed was accusing the -ice,ec Inc and the E9 of iolating the :eographical indication act of the ,-I<9 agree!ent in the W,B. 6ut first, India and <a;istan filed a petition to the E9 patent office to re%e$a!ine the patent on 6as!ati clai!ing 6as!ati has been grown in their regions for thousands of years and is co!!on ;nowledge in India and thus cannot be patented.

CONCLUSION
India is one of the richest countries in the world India in ter!s of possessing tre!endous di ersity in rice arieties. ,here are different arieties of rice%depending on the weather, soil, structure, characteristics and purposes. ,he G!ultifunctionalityI of agriculture in ter!s of en iron!ental, social and cultural 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 in relation to rice. In de eloped countries where rice is a non%!arginal crop, the eli!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. 5n iron!ental concerns are conse+uently a fre+uently used weapon in defence of the sector. 3ood safety is not particularly rele ant to rice, although there is increasing concern regarding :DBs 'genetically !odified organis!s(. While so!e rice arieties are being de eloped with new genes 'e.g. carotene%enriched rice(, they are not yet traded internationally. 0ccording 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 high nu!ber. ,his !eans that e en if a person eats a new rice ariety e ery day of the year

he has to li e for o er hundred years without reusing a ariety. 5 ery ariety has a specific purpose and utility. ,he har esting area of rice in India is the world4s largest. -ice is an i!portant aspect of life in the 9outheast and other parts of 0sia. 3or centuries, 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 a hundred 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 food security. It is !ainly culti ated by s!all far!ers in holdings of less than 1 ha. -ice is also a GwageI co!!odity for wor;ers in the cash crop or non%agricultural sectors. ,his duality has gi en rise to conflicting policy ob#ecti es, with policy%!a;ers inter ening to sa e far!ers when prices drop, or to defend consu!er purchasing power when there are sudden price increases. -ice is ital for the nutrition of !uch of the population in 0sia, as well as in 7atin 0!erica and the Caribbean and in 0frica> it is central to the food security of o er half the world population, not to !ention to the culture of !any co!!unities. -ice is therefore considered a GstrategicI 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"-I7A 0n I9B )001%2000 Certified Co!pany dealing in Indian long grain white bas!ati rice, brown bas!ati rice. 1. 9-I :0O0=0= 0:-B DI779 'I=?I0( <8,. 7,?, =IL0D060?, 0=?"-0 <-0?59"A 9ince last 50 years in the processing of high +uality pre!iu! grade non bas!ati rice and bro;en rice. 3. ,-I9,0- B85-9509, =ew ?elhi, ?elhiA 5$porter of ariety of bas!ati rice li;e traditional bas!ati rice, pure bas!ati rice, sharbati rice, shabna! bas!ati rice, par!al bas!ati rice 4. E90 -IC5A E90 -ice 3ederation is a national association representing producers, !illers and allied businesses ad ancing the use and consu!ption of E.9. 5. 609D0,I 099BCI0,59, =a i Du!bai, DaharashtraA 6as!ati rice traders and e$porters and pro ides the pre!iu! brand of bas!ati fro! the co!pany Oagat 0gro in Du!bai.

PRIMARY DATA
INFORMATION ON THE COMPANY
,he organi&ation we >nterprises. isited is a rice e$port !ill na!ed Darari :ice ,ill

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 5nterprises deals in long grain white bas!ati rice, brown 6as!ati rice and bro;en rice.

Karari 5i#e Mill .nter rises) 6ass 5oad) 7allaso ara (W)) 8hane1409:03) Maharashtra'

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