India's Rice Surplus Hits Record High Amid Export Curbs


(MENAFN- KNN India) New Delhi, Nov 9 (KNN)
India's rice inventories have reached a record 29.7 million metric tons, nearly triple the government's target, thanks to export restrictions over the past two years that have boosted domestic supplies.

This historic stockpile-48.5 per cent higher than last year's levels-could enable India, the world's largest rice exporter, to increase shipments without compromising local needs, according to sources familiar with the data.

India's rice production surged this year, driven by favourable monsoon rains that allowed farmers to increase planting.

Farmers harvested a record 120 million tons during the summer season, which accounts for around 85 per cent of the nation's total annual rice output.

With the new crop's arrival, stocks at the Food Corporation of India (FCI), the government's main stockpiler, are set to rise further, posing storage challenges for the world's second-largest rice producer.

The FCI aims to procure 48.5 million tons of summer-sown rice for the 2023-24 marketing year, up from the 46.3 million tons acquired last year.

"Rice stocks are substantially higher, and stock levels will continue to rise due to this bumper harvest," a senior government official stated.

Export restrictions were first imposed last year when patchy monsoon rains threatened crop yields.

This year, however, India has allowed the export of all rice grades except 100% broken rice, and experts, including exporter B.V. Krishna Rao, suggest that easing restrictions could alleviate the government's burden to buy excess stocks while boosting export revenues.

Yet, the abundance of rice has created issues for farmers in states like Punjab and Haryana. Overflowing storage facilities have led to delays in FCI's procurement, forcing farmers to wait at wholesale markets with their crops loaded onto tractor trolleys.

Ramandeep Singh Mann, a Punjab-based farmer, reported that extended waiting periods have caused financial losses, while the exposure to open air risks crop spoilage.

“Some farmers haven't even started harvesting, fearing long delays,” said Devinder Sharma, an independent farm policy expert. "Harvest time is running out, and a solution is needed to prevent further losses."

(KNN Bureau)

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