Indian wheat and rice exports are growing at a surprising pace, wheat exports are said to quadruple to reach the highest level in 8 years. India is the second biggest producer of wheat in the world, industry is expecting India’s wheat export figure to rise more than 4 million tonnes.
Indian rice exports are also expected to account for as much as 45% of global rice exports in 2021, and it could export around 22 million of rice this year, which is said to be more than combined exports of other three largest exporter countries like Thailand, Vietnam and Pakistan.
The Rise in exports is due to a combination of many factors –
What are the problems India facing while trying to grab a chunk of global exports?
Logistical Bottleneck -
India’s main rice port Kakinada Anchorage has limited infrastructure which has led to persistent congestion and lengthy loading delays, prompting some buyers to switch suppliers. India was offering a discount of more than $100 per tonne over other exporters, but much of the discount was wiped out by higher demurrage charges due to the delays.
The state of Andhra-Pradesh allowed the use of an adjoining deepwater port at Kakinada for rice shipments to ease the congestion, due to this vessel waiting period has gone down which has led to uplift in demand which could have been fulfilled by other countries but has remained with us.
Serious need for upgrade of Infrastructure -
The Kakinada port even after having extra port capacity still lacks behind Southeast Asian Ports due to a lack of dedicated rice and wheat handling infrastructure. Exporters complain that it takes nearly a month to load around 33000 tonnes of rice from the time they drop it at the port, while in Thailand it takes around 11 Days for the same quantity. If the ports Infrastructure was upgraded and the process was mechanized, India could export 2 million tonnes of additional rice.