{"id":606,"date":"2019-09-21T19:00:21","date_gmt":"2019-09-21T13:30:21","guid":{"rendered":"https:\/\/www.grainmart.in\/news\/?p=606"},"modified":"2019-09-21T19:00:23","modified_gmt":"2019-09-21T13:30:23","slug":"rice-exports-decline-agricultural-commodity-exports-dip-by-14-39","status":"publish","type":"post","link":"https:\/\/www.grainmart.in\/news\/rice-exports-decline-agricultural-commodity-exports-dip-by-14-39\/","title":{"rendered":"Rice Exports Decline: Agricultural Commodity Exports Dip by 14.39%"},"content":{"rendered":"\n

According to data published by APEDA<\/a>, India’s agricultural exports plunged by 14.39% to $5.45 billion in April-July 2019. The largest agricultural commodity exported by India, rice, observed a sudden fall in exports during this period. The export of basmati rice decreased by 9.26% while non-basmati rice decreased by 38.38% compared to previous year.<\/p>\n\n\n\n

MEIS Scheme Withdrawal<\/strong> <\/h4>\n\n\n\n

On 25th<\/sup> of March 2019, the Indian Government withdrew Merchandise Exports from India Scheme (MEIS) on Non-Basmati Rice. The 5% MEIS incentive on non-basmati rice was given to exporters to remain competitive globally but since the withdrawal of the scheme exports have fallen drastically. Indian non-basmati rice is unable to compete with rice prices offered by Vietnam, Thailand and Pakistan.<\/p>\n\n\n\n

\"\"
Non-basmati rice<\/figcaption><\/figure>\n\n\n\n

Increase in MSP<\/strong> <\/h4>\n\n\n\n

The Indian government has increased minimum support price (MSP) on most agricultural commodities by 30% in the last four years. Experts say that the increase in the MSP, which aimed to help farmers, has subsequently resulted in decrease in exports of agricultural commodities. Non-Basmati Rice export has specifically suffered due to increase in MSP. <\/p>\n\n\n\n

\"\"
Photo by Samarth Singhai<\/figcaption><\/figure>\n\n\n\n

Raise in import duty by Bangladesh<\/strong> <\/h4>\n\n\n\n

Earlier in May 2019, Bangladesh Government increased import duty on Rice from 28% to 55%. This has led to fall of non-basmati rice exports from India by about INR 3,278 crores. This move by Bangladesh Government was made to protect their local farmers from domestic falling prices of rice. <\/p>\n\n\n\n

Bangladesh was the largest importer of Non-basmati rice from India, and is now becoming self-sufficient. Bangladesh imported about 1.87 million tons of non-basmati rice in 2017-18, which has dropped to 480,567 tons in 2018-19.<\/p>\n\n\n\n

Delayed Payments from Iran <\/strong> <\/h4>\n\n\n\n

Iran is the biggest importer of Basmati Rice from India. However, the shipments of basmati rice to Iran is a matter of concern along with delayed payment. Since US sanctions on Iran, payments to Basmati Rice exporters have delayed and there is negative sentiment in the rice market.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The Indian government needs to take into account the international commodity prices<\/a> before increasing MSP or changing its policies towards agricultural commodities. Situation with Iran is also a matter of concern for Indian basmati rice exporters. Indian Government needs to find payment alternatives with Iran. Kharif harvest is starting in a couple of weeks and steps should to taken to improve agricultural commodity trade. <\/p>\n","protected":false},"excerpt":{"rendered":"

Agricultural commodity export from India dipped to USD 5.45 billion for the period of April-July 2019<\/p>\n","protected":false},"author":10,"featured_media":608,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[1252,1250,1253,1251,151,40,39,178,41,1249,44],"class_list":["post-606","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-apeda","tag-basmati-rice-export","tag-decline-in-rice-export","tag-import-duty-bangladesh","tag-iran-basmati-rice","tag-meis-non-basmati-rice","tag-meis-rice","tag-msp-hike","tag-msp-increase","tag-rice-export","tag-rice-import-duty"],"yoast_head":"\nRice Exports Decline: Agricultural Commodity Exports Dip by 14.39% - Grainmart News<\/title>\n<meta name=\"description\" content=\"Agricultural commodity export from India dipped to USD 5.45 billion for the period of April-July 2019\" \/>\n<meta name=\"robots\" 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