Record Rice Production in India Amid Challenges

India's rice production is set to surpass last year's levels despite facing flooding challenges in some states. Agricultural Minister Shivraj Singh Chouhan indicated that the government may ease curbs on non-basmati rice exports as inventories grow ahead of the new crop harvest season.

India's rice production this year is projected to surpass last year's output, despite facing challenges such as heavy rains and flooding in certain states, Agricultural Minister Shivraj Singh Chouhan announced on Thursday. He also hinted at the possibility of easing restrictions on non-basmati rice exports as inventories swell with the upcoming harvest.

In 2023, India implemented a series of export restrictions on various grades of rice to ensure adequate domestic supply for its 1.4 billion citizens and control local prices. The previous year's El Nino effect had reduced rainfall, impacting a country that heavily relies on the June-to-September monsoon to irrigate nearly half of its farmlands.

Despite a weak start to the monsoon season in June, rains improved and are currently 7.6% above average, although some areas experienced flooding, leading to concerns about yield loss. However, Minister Chouhan stressed that overall rice production remains robust due to increased planting.

"Our overall rice production will surpass last year's levels despite flooding," he said, adding that the issue is localized to a few states. Higher output could permit India to resume non-basmati white rice exports.

Before the 2023 export restrictions, India contributed over 40% of global rice exports. Rice is a staple for over 3 billion people, with nearly 90% of this water-intensive crop grown in Asia.

In a recent move, India removed the floor price for basmati rice exports ahead of the new season's crop arrival on Friday.

(With inputs from agencies.)