Assessing constraints in Telangana’s rice export supply chain from paddy fields to global markets
Abstract
The present study entitled “Assessing Constraints in Telangana’s Rice Export Supply Chain from Paddy Fields to Global Markets” was undertaken to analyse the major constraints affecting the rice export supply chain and to examine the role of different stakeholders involved in rice export activities in Telangana state. Rice is one of the most important cereal crops in India and contributes significantly to agricultural production, food security, employment generation and foreign exchange earnings. Telangana has emerged as one of the major rice-producing states in India due to increasing irrigation facilities, expansion in cultivated area and improved productivity levels. The study was conducted in selected districts of Telangana namely Warangal, Nalgonda and Karimnagar due to their significant contribution to rice production and export activities. The study mainly focused on analysing stakeholder-wise constraints in the rice export supply chain. Both primary and secondary data were used for the study. Primary data were collected from 120 respondents comprising 90 farmers, 10 rice millers, 10 exporters and 10 logistics handling personnel through personal interview method using a pre-tested structured schedule. Secondary data related to rice production, exports and export performance were collected from APEDA, DGCI&S, DES Telangana and published reports. Descriptive statistical tools such as percentages and mean were used for analysis, while Garrett’s Ranking Technique was employed to identify and rank the major constraints faced by stakeholders involved in the rice export supply chain. The study revealed that farmers mainly faced constraints related to high cost of fertilizers and pesticides with a mean Garrett score of 84.36, labour shortage during peak season (81.54), high labour wages (78.63) and water scarcity for irrigation (75.82). Rice millers identified high electricity charges as the major constraint with a mean Garrett score of 82.46 followed by high transportation cost (79.84), labour shortage (76.25) and high processing cost (73.68). Exporters mainly faced high freight charges with a mean Garrett score of 84.72 followed by export policy uncertainty (81.56), container shortage (78.94) and delay in customs clearance (75.38), whereas logistics personnel identified high fuel cost as the most severe constraint with a mean Garrett score of 83.64 followed by poor road infrastructure (80.42), container shortage (77.85) and delay in cargo movement (74.63). The findings indicate that logistics-related, infrastructural and policy-related constraints significantly affect the efficiency and competitiveness of rice exports from Telangana. The study concluded that Telangana possesses strong potential for rice exports due to increasing production, exportable surplus and growing international demand for Indian rice. However, several operational, infrastructural and policy-related challenges continue to affect the smooth functioning of the rice export supply chain. Therefore, strengthening logistics infrastructure, ensuring stable export policies, improving transportation facilities and enhancing institutional support are essential for improving export competitiveness and supply chain efficiency.
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Introduction
Agriculture plays a vital role in the Indian economy by contributing significantly towards employment generation, food security, rural livelihoods and economic development. A major proportion of the Indian population depends directly or indirectly on agriculture for income and sustenance. Among various agricultural commodities, rice occupies a prominent position as one of the most important cereal crops cultivated in the country. Rice serves as the staple food for more than half of the population and contributes substantially towards nutritional security and agricultural trade. India is one of the leading producers and exporters of rice in the world due to favourable agroclimatic conditions, availability of diverse rice varieties, increasing production and strong international demand for Indian rice. Agricultural exports have emerged as an important source of foreign exchange earnings for the country, and rice constitutes a major share in India's www.extensionjournal.com agricultural export basket. Both basmati and non-basmati rice exports contribute significantly towards export earnings and strengthen India's position in global agricultural trade. In recent years, Telangana has emerged as one of the important rice-producing states in India due to expansion of irrigation facilities, increasing cultivated area under paddy and adoption of improved production technologies. Government initiatives such as irrigation projects, input support schemes and procurement policies have contributed towards rapid growth in rice production and productivity in the state. The increasing production levels and availability of exportable surplus have created substantial opportunities for rice exports from Telangana to international markets. Rice exports from the state are mainly facilitated through rice mills, export agencies, logistics operators and inland container depots such as ICD Hyderabad and ICD Thimmapur. The rice export supply chain involves a series of interconnected activities beginning from production and procurement to processing, storage, packaging, transportation, export documentation, customs clearance and international distribution. Efficient functioning of each stage in the supply chain is essential for maintaining product quality, reducing transaction cost and ensuring timely export movement. The rice export supply chain involves the participation of multiple stakeholders including farmers, rice millers, exporters, logistics handling personnel and supporting institutions such as APEDA, DGFT, EIC, customs authorities, banks and transport agencies. Farmers act as the primary producers supplying paddy to procurement agencies and rice mills, while rice millers perform processing activities such as cleaning, drying, milling, polishing, grading and packaging to convert paddy into export-quality rice. Exporters coordinate export documentation, quality certification and shipment procedures, whereas logistics personnel manage transportation, warehousing, cargo handling and container movement from mills to export gateways. The efficiency of the supply chain largely depends on proper coordination among stakeholders, adequate infrastructure facilities, stable export policies and effective logistics management. Any disruption or inefficiency in the supply chain can adversely affect export competitiveness, profitability and timely delivery of consignments to international buyers. Despite the increasing export potential of rice from Telangana, the rice export supply chain faces several operational, infrastructural, logistical and policy-related constraints. Farmers encounter problems related to high input cost, labour shortage, irrigation issues and price fluctuation. Rice millers face high electricity charges, increasing transportation cost, labour scarcity and difficulties in maintaining export quality standards. Exporters experience challenges such as high freight charges, container shortage, customs clearance delays, export policy uncertainty and international market fluctuations. Similarly, logistics handling personnel face constraints related to high fuel cost, poor road infrastructure, traffic congestion and delays in cargo movement. Frequent changes in export policies such as export restrictions, export duties and minimum export price regulations further create uncertainty in export operations and affect trade competitiveness. These constraints increase operational cost, reduce efficiency and negatively influence the overall performance of the rice export supply chain. Although several studies have examined rice production, agricultural exports and supply chain management in India, limited research has been carried out specifically on stakeholder-wise constraints in the rice export supply chain of Telangana. Understanding the nature and severity of constraints faced by different stakeholders is essential for developing effective policy measures and improving supply chain efficiency. In this context, the present study entitled "Assessing Constraints in Telangana's Rice Export Supply Chain from Paddy Fields to Global Markets" was undertaken to analyse the major constraints affecting the rice export supply chain and to identify stakeholder-wise challenges affecting rice export operations in Telangana.
Materials and Methods
Study Area
The present study was conducted in Telangana state, which has emerged as one of the major rice-producing states in India due to rapid expansion of irrigation facilities, increasing paddy cultivation area and higher productivity levels. Telangana possesses significant potential for rice production and exports owing to favourable agro-climatic conditions, availability of irrigation infrastructure and increasing marketable surplus. For the purpose of the study, three districts namely Warangal, Nalgonda and Karimnagar were purposively selected due to their significant contribution towards rice production, rice processing and export-related activities in the state. These districts have a large concentration of rice mills, procurement centres and export-oriented rice processing units, making them suitable for studying constraints in the rice export supply chain.
Sampling Procedure
The study was primarily based on primary data collected from different stakeholders involved in rice export activities in Telangana. Primary data were collected through personal interview method using a structured and pre-tested questionnaire specifically designed for the study. The questionnaire included information related to stakeholder characteristics and constraints affecting rice export operations. A total sample of 120 respondents was selected for the study comprising 90 farmers, 10 rice millers, 10 exporters and 10 logistics handling personnel. Farmers were selected from major rice-producing areas of the selected districts, while purposive sampling technique was used for selecting rice millers, exporters and logistics personnel due to their direct involvement in rice export activities and supply chain operations. The selected stakeholders represented different stages of the rice export supply chain including production, processing, transportation and export management.
Analytical Tools and Techniques
The collected primary data were tabulated and analysed using appropriate statistical tools. Descriptive statistical tools such as percentages and mean were used to analyse stakeholder characteristics and supply chain-related parameters. Garrett's Ranking Technique was employed to identify and rank the major constraints faced by farmers, rice millers, exporters and logistics personnel involved in the rice export supply chain. Under Garrett's Ranking Technique, respondents were www.extensionjournal.com asked to rank the identified constraints based on their severity and importance. The ranks assigned by respondents were converted into percent positions using the following formula:
Percent Position = 100 × (Rij -0.5) / Nj Where, Rij = Rank given for ith constraint by jth respondent Nj = Number of constraints ranked by jth respondent The percent positions obtained were converted into Garrett scores using Garrett ranking conversion tables. The scores for each constraint were summed and average scores were calculated to identify the relative importance and ranking of constraints faced by stakeholders in the rice export supply chain.
Results and Discussion
References
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