Feature: India's record rice crop brings problem of plenty for farmers juggling protest

Chaman Lal Setia Exports

26/10/2021 08:41

By Mayank Bhardwaj
    MUNAK, India, Oct 26 (Reuters) - Farmers in India are
gathering in the largest rice crop in  history, which promises
record exports, while making sure to keep up their
longest-running protest, set to turn a year old next month.
    The sit-in against controversial agriculture reforms is
taking place in the capital, miles away from the five acres (2
hectares) of lush green rice paddies tended by Sukrampal Beniwal
in his village of Munak, in the northern state of Haryana.
    "We'll not budge until the government rolls back the laws,"
he said, referring to three measures the farmers, demonstrating
by the tens of thousands in New Delhi, say will threaten their
livelihoods.  urn:newsml:reuters.com:*:nL3N2GI1VP  urn:newsml:reuters.com:*:nL4N2IK2OM  urn:newsml:reuters.com:*:nL4N2J824S  urn:newsml:reuters.com:*:nL4N2QB2W8
    Farmers in the breadbasket state have joined hands to bring
in the mammoth crop and make sure that every time a group sets
off to harvest rice, a similar number leave to join the protest
on the outskirts of New Delhi, Beniwal said.
    "Because of our camaraderie, we have quite successfully
dealt with the two competing challenges: managing the protest
against legislation and harvesting a big crop," he added.  
    Introduced in September last year, the legislation
deregulates the agriculture sector, letting farmers sell produce
to buyers beyond government-regulated wholesale markets, where
growers are assured of a minimum price.
    While small farmers say the changes make them vulnerable to
competition from big business, and threaten the eventual loss of
price support, the government says the reforms will bring them
new prospects and better prices. 
    Yet, with global food prices near decade highs after a surge
of 30% in rates for cereals over the past year, India's problem
of plenty also offers a dazzling opportunity.
    The new harvest will boost exports to help the South Asian
nation cement its status as the dominant supplier of the world's
most critical grain, traders say.
    "Indian prices are very attractive at a time when demand is
rather strong from many buyers, including China and a clutch of
countries in Africa," said Aditya Garg, a leading exporter of
the grain. 
    "In fact, for non-basmati rice, many Indian exporters have
received orders from a lot of new buyers in Egypt, Sudan,
Tanzania and Iran."
    Coming at a time of flat output in traditional export
powerhouses Vietnam and Thailand, the higher supply will let New
Delhi offer more competitive rates to undercut any rivals.
    Output of summer-sown rice in 2021/22 will hit a record
107.04 million tonnes, the farm ministry says, while combined
output of summer and winter rice will hit 125 million, or about
24.5% of global rice output, its largest ever.
    Coupled with upgraded export facilities, that volume will
allow India to repeat, or even surpass, last year's record
export tally of 20 million tonnes, filling growing demand for
the staple from buyers across Asia, Africa, and the Middle East.
    India is selling 25% broken rice, a non-basmati variety
preferred by most overseas buyers, at $345 a tonne on a
free-on-board basis compared to $360 offered by Thailand, the
world's second biggest rice exporter, dealers said, with some
cargoes  even sold at $320 a tonne.
    CHANGE UP
    Farming sustains almost half of India's population of nearly
1.4 billion and makes up about 15% of a $2.7-trillion economy.
    Rice is India's biggest foreign exchange earning farm
commodity, with shipments worth $8.82 billion in the fiscal year
that ended in March 2021, government figures show.
    Until two seasons ago, India's annual rice exports averaged
about 11 million to 12 million tonnes. 
    But shipments soared to 20 million tonnes for a record share
of 40.7% of global trade last season, data from the U.S.
Department of Agriculture (USDA) shows, after growing problems
in Southeast Asia pushed up the prices of rivals to make Indian
non-basmati shipments attractive to hungry global buyers.
    "As climatic conditions helped our farmers raise the
country's rice production, we've permanently become an even
bigger player in the international market, and our share will
grow," said trader Rajesh Paharia Jain at Unicorp Pvt Ltd.
    In Munak, 130 km (80 miles) from New Delhi, the rice farmers
showed no sign of relenting.
    "Our record crop shows we are making India more than
self-reliant in food, and the government shouldn't insist on
laws that will spell doom for agriculture," said rice grower
Ravindra Kajal.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
India's share of global rice output, exports and consumption   
https://tmsnrt.rs/3pxp8S8
India rice export price discount to Southeast Asian offer seen
widening on big crop    https://tmsnrt.rs/3Bb3u8u
Top 10 rice exporters, producers and consumers    https://tmsnrt.rs/2XGTiqF
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Mayank Bhardwaj; Editing by Gavin Maguire and
Clarence Fernandez)
 ((mayank.bhardwaj@thomsonreuters.com; +91-11-4954 8030;
Twitter: @MayankBhardwaj9; Reuters Messaging:
mayank.bhardwaj.thomsonreuters.com@reuters.net))