Global Rice News

The union government’s stubborn attitude in refusing to procure the Yasangi paddy harvest from Telangana can only mean two things – that it stands completely exposed in understanding the global market needs or it is guilty of wilful rejection of the State’s genuine pleas.

There has been a growing demand for broken rice in the international market in the recent past, which shot up manifold on account of the Russia-Ukraine conflict due to severe shortage of maize that Ukraine produces and supplies to the world. Subsequently, many countries including China, Indonesia and Vietnam have completely switched over to broken rice for animal feed.

According to the latest report of the International Grains Council as well as Agricultural and Processed Food Products Export Development Authority (APEDA), the export price of maize presently is around Rs 2,200-Rs 2,500 per quintal against the MSP of Rs 1,870 per quintal. Given the shortage of maize, the price of broken rice has surged to Rs 2,100 per quintal in the international market.

Interestingly, China and Vietnam are the largest importers of broken rice from India. According to APEDA data, China started importing Indian rice in the last financial year. A report of the US Department of Agriculture says broken rice accounted for about 97 per cent of India’s rice exports to China during January-August last year.

If the BJP government had done its homework on international market needs instead of having a face-off with the Telangana government, the issue of procurement of Yasangi paddy crop would have been resolved by now.

Telangana presents a golden opportunity for import of broken rice since one of the issues is that the Yasangi paddy crop, when milled, leaves substantial residue of broken rice. Paddy was cultivated in about 38.5 lakh acres in Telangana during the Yasangi (Rabi) season which in turn is expected result in a yield of 70 lakh tonnes of paddy. Setting aside the age-old practice of paddy procurement, the Centre has been insisting that the Telangana government get the paddy milled into raw rice before procurement. The State government explained that this could result in broken rice due to severe climatic conditions prevailing in the State during summer.

The Telangana government suggested that the Centre purchase the paddy and get it milled as per its requirements rather than insisting on supplying only raw rice. The State government also pointed out that the Centre was expected to pay MSP for paddy and not raw rice or broken rice.

The present scenario presents a win-win situation for both the Centre and the State, but will the BJP government seize the opportunity or will it stick to its narrow political agenda is the million dollar question.

Source: https://telanganatoday.com/broken-rice-centre-can-tap-global-demand