India's status as a major supplier in the global food grain market has decreased
16-Aug-2024 03:49 PM
New Delhi. With the objective of increasing supply and availability in the domestic sector and curbing the price rise, the Central Government has banned the commercial export of 100 percent broken rice, non-basmati white rice,
wheat and its value added products, due to which India's status as an important supplier country in the global food grain market has decreased significantly.
It is true that through these measures the government has largely eliminated the possibility of import of rice and wheat in the country, but at the same time India's position on the export front has also become very weak.
Along with rice and wheat, there has been a good increase in the export of maize from India during the last few years, but due to tremendous increase in domestic demand and price jump, not only is the export being badly affected this year, but there is also a need for heavy import of maize from abroad.
Under the Tariff Rate Quota (TRQ) system, the government has allowed the import of 5 lakh tonnes of non-GM maize at concessional duty.
According to the US Department of Agriculture (USDA), India's role in food grain exports has been limited for the last three years due to the priority given to the policy of maintaining better supply conditions in the domestic division.
During the year 2020-21 to 2023-24, there was a decline of 86 percent in maize exports from India, 90 percent in wheat shipments and 20 percent in rice exports. In the marketing season of the year 2021-22, there was a record export of food grains from India, compared to which the shipment quantity has now reduced to almost half.
Maize was earlier consumed more in poultry feed and starch production, which has retained its place.
Along with this, now the demand for maize in ethanol production is increasing rapidly, which has not only created an environment of huge rise in prices but has also reduced the exportable stock significantly.
With the complete ban on the commercial export of white non-basmati rice and wheat, India's position on the export front has become very weak. However, despite the restrictions, India still remains the largest exporter of rice in the world.
APEDA data shows that during the financial year 2022-23, the export of non-basmati basmati from India increased rapidly to a new record level of 177.80 lakh tonnes, which declined to 111.60 lakh tonnes in the financial year 2023-24. Similarly,
the export of wheat fell from the record level of 72.30 lakh tonnes to 1.90 lakh tonnes and the export of maize fell from 36.40 lakh tonnes to 14.40 lakh tonnes. Exports are also likely to decline in the financial year 2024-25.