Market Survey
By: Dr I. Satya Sundaram
Rice: Higher Yields
Hold the Key
With groundwater tables depleting and the demand for
rice increasing, Indian farmers need to adopt techniques
that increase productivity, such as farm mechanisation
and organic farming.
The major rice producing states
are West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Tamil Nadu, Bihar, Orissa, Karnataka and Haryana.
The first four produce more than 50
per cent of India’s total output.
Rice is a water-intensive crop.
We have to increase food production
with less water, particularly in countries with limited water and land
resources by promoting techniques
and cropping systems of higher water-use efficiency.
Of the total 96.69 million tonnes
of rice produced in the country in
2007-08, basmati and the premium
non-basmati variety accounted for 2
per cent. The organised mandi system and strong access to markets
prevalent in the North is absent in
South India.
Significant developments
Rice crop
I
ndia is the world’s second
biggest producer of rice, after China. Rice is the staple
food for more than half the
population of the world. Yet
rice production is not keeping pace
with population growth. Water shortage is threatening the sustainability
of irrigated rice-growing methods in
many parts of the world, leading to
food insecurity.
In India, around 44 million hectares are under rice cultivation, and
52.6 per cent of this is irrigated. Rice
production needs to be enhanced
from the present level of 99 million
tonnes to 180 million tonnes over
the next 25 years.
In 2008, Chinese scientists announced the discovery of a rice gene
capable of doubling crop yields. Varieties of rice with a particular gene
grow taller, flower later and produce
twice the number of grains as plants
that lack the gene, given the same
sunny conditions. This is welcome
news, given that global demand for
rice is increasing 1.16 per cent a
year.
China experienced a rice revolution by developing hybrid rice in the
early 1970s. By 1990, the country
could extend hybrid rice cultivation
to more than half of its total paddy
land and has emerged as the world’s
largest rice producer.
India, too, developed indigenous
hybrid rice technology in the 1970s,
but the boost to research work came
only around 1990. A large number
of rice hybrid varieties have since
been developed by the ICAR (Indian
Council of Agricultural Research)
network and by private companies.
These have been put to commercial
cultivation in different parts of the
country.
Market Survey
04, it was only Rs 550 per
Rice exports
quintal. It rose to Rs 900
Area, Production and Yield of Rice
per quintal for the crop
Towards the end of December
Year Area Production Yield
year 2008-09.
2007, the minimum export price
(million ha) (million tonnes) (kg/ha)
The stocks of food grain
(MEP) of rice was hiked to $500
are mounting. The total
(around Rs 24,000) a tonne, an in1964-65
36.46
39.31
1,078
stock in the central food
crease of $75 (Rs 3600) over the ear1967-68
36.44
39.61
1,032
grain
pool
is
already
about
lier MEP.
1973-74
38.29
44.05
1,151
15
million
tonnes
in
excess
The government announced a
1978-79
40.48
63.77
1,328
of the buffer stock norms.
ban on non-basmati rice exports in
1983-84
41.24
60.10
1,457
In June 2009, there were
early October 2007. But because of
1988-89
41.73
70.49
1,689
around 50 million tonnes,
representation from exporters, the
1990-91
42.60
74.59
1,751
close to the record of 58
government removed the ban and in2001-02
44.90
93.34
2,079
million tonnes in 2002-03.
troduced the MEP to prevent the ex2002-03
41.18
71.82
1,744
The Food Corporaport of varieties that are procured for
2003-04
42.59
88.53
2,077
tion of India has bought a
the public distribution system (PDS).
record 28.6 million tonnes
However, domestic prices continued
2004-05
41.91
83.13
1,984
of rice from farmers durto rise. This forced the government
2005-06
43.66
91.79
2,102
ing
the
marketing
season
to further hike the MEP. Exporters
2006-07
43.70
92.76
2,084
of 2009. The government
fear loss of markets to countries like
2007-08
NA
96.69
NA
raised the floor price and
Thailand and Pakistan.
2008-09
NA
99.37*
NA
opened 28,000 centres to
While the Indian government
*Estimates
collect food grains.
increased the MEP for basmati rice
The paddy farmers,
from $900 (Rs 43,200) to $1200 (Rs
In India, the area under rice culthough, continue to face some prob57,600) in a series of notifications in
tivation increased from 36.46 million
lems. The present countrywide av2008, it simultaneously placed a ban
ha in 1964-65 to 40.48 million ha in
erage rice yield is only around 2.12
on non-basmati rice exports after fix1978-79, and to 42.60 million ha in
tonnes/ha, though it is as high as 4
ing the MEP at $1000 (Rs 48,000).
1990-91. It was 43.70 million ha in
tonnes/ha in Punjab and around 3
In April 2008, the government
2006-07.
tonnes/ha in Andhra Pradesh.
imposed the $200 a tonne export tax
Production of rice increased
A major constraint on raising
on basmati rice, for the first time in
from 39.31 million tonnes in 1964hybrid rice production is the high
India. There are around 200 basmati
65 to 63.77 million tonnes in 1978cost of the hybrid seed, which is atrice exporters in the country.
79, and to 74.59 million tonnes in
tributed to the complex technology
1990-91. It was 92.76 million tonnes
involved in its production. Also, the
Measures needed
in 2006-07.
farmers have to buy fresh seed every
The rice yield increased from
year. Thus, only 5 per cent of the toThe government may lift the ban
1078 kg/ha in 1964-65 to 1328 kg/
tal land under paddy enjoys the benon rice exports because of the surha in 1978-79, and to 1751 kg/ha in
efit of hybrid technology.
plus situation at the global level and
1990-91. It was 2084 kg/ha in 2006Table II
07.
Table I
The National Food Security Mission (NFSM) has set the target of expanding the hybrid rice cultivation
to 3 million hectares by 2011-12 from
around 2 million hectares at present.
The hybrid rice produces between 1
and 1.5 tonnes more rice per hectare
than the conventionally-bred highyielding rice varieties.
The minimum support price
(MSP) for the common variety of
paddy has been going up. In 2003-
India’s Rice Exports
Year 2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
Basmati
(lakh tonnes) Value
(Rs million)
Non-basmati (lakh tonnes)
Value
(Rs million)
8.49
6.67
7.09
7.71
11.63
11.67
10.41
21,549.9
18,427.7
20,584.7
19,930.5
28,239.0
30,431.0
27,783.1
6.82
15.41
42.59
26.41
36.15
29.22
37.05
7,772.6
13,313.7
37,729.4
21,749.4
39,450.2
31,781.7
42,578.8
Market Survey
also in India.
There are great opportunities
to boost rice yields through proper
agronomic management practices.
Farm mechanisation appears to be
inevitable. For instance, the plastic
drum seeder consists of four drums,
and each will hold 2 kg of seeds at
a time. The 8-row drum seeder requires only 9 kg of pulling force
to operate. The machine weight
is 8 kg, without seed. It requires
two persons to cover one hectare.
A unit costs around Rs 4000 (the
Tamil Nadu government is extending a subsidy to the extent of 75 per
cent).
The drum seeding technology offers many advantages—no nursery
and transplanting, less labour, quick
coverage and easy inter-cultural
operations. However, proper weed
management is required to take full
advantage of this technology.
The system of rice intensification
(SRI) is a system of irrigated rice
crop management through which
production can be substantially increased by effective changes in how
the management of plants, soil, water and nutrients, are integrated.
In Andhra Pradesh, the results
of SRI trials by 50 farmers, during
the rabi season of 2003-04, showed
an increase of yield from 7.1 tonnes/
ha to 9.7 tonnes/ha, with the high-
Uncooked rice
Golden Rice
The rice seeds are yellowish in colour due to the presence of beta-carotene. It has
been genetically modified to contain beta-carotene, which can produce Vitamin A, once
it is consumed by human beings. This variety was first developed in 1999 by two scientists—Prof. Ingo Potrykus of the Swiss Federal Institute of Technology, Switzerland and
Dr Peter Beyer of University of Freiburg, Germany.
This new variety emerged by combining genetic material from daffodils, peas and
Japonica rice. A number of institutions liberally funded the development of this genetically
modified Golden Rice technology. Golden Rice has been evolved to provide a new, alternative intervention to combat Vitamin A deficiency (VAD) in people who predominantly consume rice and is certainly a boon to millions of malnourished children across the globe.
est measured yields surpassing 15
tonnes/ha. This method will help increase rice yields with less amounts
of water. Thirty-five per cent less
water is required in the SRI method
compared to the conventional rice
culture method. The plants in SRI
become tolerant to pests and diseases because of their stronger growth
and vigour.
Several types of organic farming are being practised all over the
country. The traditional rice varieties are resistant to drought and
infestations. In Tamil Nadu and
other states, farmers are giving importance to organic paddy. This is
because of an unpredictable monsoon, decreasing or stagnant prices,
groundwater depletion, along with
increasing labour and chemical fertiliser costs. Farmers now realise
that by applying urea and potash,
the soil becomes hard and loses its
porous nature. The farmers need to
opt for a formula that reduces input
costs while giving a good yield. Organic rice farmers are able to get a
gross revenue of Rs 29,000 per acre.
The net income is of the order of Rs
20,000 per acre.
The NFSM (National Food Security Mission) has come forward to
subsidise the production as well as
the sale of hybrid seeds to make it
affordable for farmers. The subsidy
is about Rs 1000 per quintal and is
available to both the public and private sectors.
An additional subsidy of 50 per
cent of the seed cost (with a ceiling of
Rs 2000 a quintal) will be provided to
seed distributors to supply the subsidised hybrid rice seed to farmers.
Rice bran oil—a healthy option—
is becoming more and more popular.
There is a need for product diversification, refining the packaging strategy, adopting branding and effective
marketing approaches to create a
bigger market for rice.
Rice cultivation should be made
economical. Direct marketing should
be encouraged to marginalise middlemen. The focus should be on value-addition activities like cleaning,
grading, packing, primary processing and storage. We have to link up
these facilities to retail chains. Retailing should boost product diversification and value addition, which in
turn will benefit rice farmers.
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