Analysis on area, production and productivity of basmati rice in India

Introduction

Rice (Oryza sativa) is a staple food that provides approximately 20% of the world's average caloric intake, cultivated on around 11% of global agricultural land. With a record production of 984 million tons in 2017 (FAOSTAT 2019), rice plays a vital role in ensuring food and nutrition security worldwide. The significance of rice is encapsulated in the theme "Rice is life," highlighting its importance as a primary food source and income generator, particularly in developing countries. In India, rice accounts for nearly half (44%) of total food utilization and occupies around a quarter (23%) of the country's total cropped area. The production of rice has far-reaching implications for food security, both in India and globally, underscoring its status as a critical food crop influenced by industrial developments. Basmati Paddy, a premium product from the Himalayan foothills of India, is renowned for its exceptional quality and aroma, making it a sought-after food item in international exports from India. As one of the largest exporters of rice, India ships approximately 10-13 million tons of basmati rice annually. In the fiscal year 2018-19, India exported 11.9 million tons of rice, comprising 4.4 million tons of basmati rice and 7.5 million tons of non-basmati rice. The share of basmati rice in total rice exports has fluctuated between 30% and 40%, while non-basmati rice accounts for 60% to 70% of the trade. Indian rice is exported to around 132 countries worldwide, with major destinations including Iran, Saudi Arabia, the UAE, and Iraq. Objectives 1. To estimate growth in area, production and productivity of Basmati Rice.

Methodology

Growth rates analysis

To arrive at normal years, a simple average of estimate for thirty years from 1988-89 to 2017-18 have been taken. The normal year was used as the base year for calculating growth rates, serving as a reference point for estimating changes and trends in subsequent years. We take Time as the independent variables and the Area, Production, Productivity and their respective values of the Basmati Rice as the dependent variables, the compound growth rates were estimated by using following exponential growth function. The CGR of area of basmati rice in the Period -I was found 5.76 percent and in Period -II area was 7.67 percent. The percent CGR of area of basmati rice in the overall Period was 5.45 percent. All the above CGR are significant at 5% level of significance.

The percent CGR of Production of Basmati Rice in the Period -I, was 6.04 percent and in Period -II, area was 9.01 percent. The percent CGR of production of basmati rice in the overall Period was 9.40 percent. The CGR percent in basmati rice is significant at 5% level of significance. The CGR of Productivity of Basmati Rice in the Period -I, was 0.25 percent and in Period -II, area was 1.24 percent. The percent CGR of productivity of Basmati Rice in the overall Period was 3.75 percent. Productivity of Period -I, was recorded non -significant at 5% and Period -II and Overall Period are significant at 5%.

Compound Growth Rate (CGR) of export quantity, export value and unit value of basmati export

The CGR of export quantity of basmati rice in the Period -I was 8.72 percent and in Period -II area was 13.64 percent. The percent CGR of export quantity of basmati rice in the overall Period was 11.03 percent. All the above CGR are significant at 5% level of significance The percent CGR export value of basmati rice in the Period -I was 16.96 percent and in Period -II area was 22.63 percent. The percent CGR of export value of basmati rice in the overall Period was 17.65 percent. The CGR percent for export value of basmati rice is significant at 5% level of significance. The percent CGR of unit export value of basmati rice in the Period -I was 7.58 percent and in Period -II area was 7.91 percent. The percent CGR of unit export value of basmati rice in the overall Period was 5.96 percent. Unit export value for all the Period significant at 5% level of significance.

Conclusion

This comprehensive study provides valuable insights into the growth trends of Basmati rice in India, covering area, production, productivity, export quantity, export value, and unit value. The analysis reveals significant compound growth rates across all parameters, indicating a robust performance of the Basmati rice sector. The study highlights the importance of Basmati rice as a vital food crop and a substantial contributor to India's agricultural exports, with a significant share in global trade. The findings demonstrate that India's Basmati rice industry has shown remarkable resilience and growth over the years, driven by factors such as increasing demand, improved production practices, and effective marketing strategies. The results of the study have important implications for policymakers, farmers, and industry stakeholders. They can inform evidence-based decisions and strategies to:  Enhance production and productivity  Expand export markets and increase global competitiveness  Develop sustainable practices and address climate change challenges  Improve supply chain efficiency and reduce losses  Support small-scale farmers and promote inclusive growth Overall, this study contributes to a deeper understanding of the Basmati rice sector's dynamics and provides a foundation for future research and policy interventions to ensure the long-term sustainability and growth of this critical agricultural sector.

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