Rice Is Now 30% More Costlier Since Early June Due To High Export Demand, Crop Crisis: Report

Rice prices, including all varieties, have gone up by 30 per cent since early June in the country amid high demands and crisis. The prices have inflated due to higher demand from Saudi Arabia, Iraq, Bangladesh and Iran and also a shortage in paddy acreage in numerous states in India. The total paddy area in India was approximately 13.3 per cent less till July 29 compared with the same period from 2021.

Meanwhile, the shortage of rains has adversely impacted crops in the primary producer states of Jharkhand, Uttar Pradesh, Chhattisgarh, Odisha, Bihar and West Bengal. This has also raised massive concerns regarding a shortage in grain output, and increased export demand fanned prices further, reported News18.

Reasons Behind The Inflation

As of July 29, the zone under paddy cultivation in the above-mentioned states is lower by 3.7 million hectares compared to last year. The area deficit is approximately a tenth of the kharif rice acreage of 39.7 million hectares for the entire nation. At a moderate yield of 2.6 tons per hectare, lower plantings have set around 10 million tonnes of production at stake.

Until July 29, the monsoon rain has been above-normal, with 9 per cent more than the long period average at a total level. However, they are still behind in central rice-producing Indian states dependent on rains, as per the statistics from the India Meteorological Department.

Rainfall deficiency so far is at a worrying 47 per cent in southern Bengal, 52 per cent in eastern Uttar Pradesh, 41 per cent in Bihar and 50 per cent in Jharkhand. Meanwhile, another top rice producer Telangana is battling severe floods.

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