Categories: Economy

Despite healthy rice production, shortage of containers hamper exports

<p>
<strong>Shortage of shipping containers has severely strained India’s rice exports, which touched a record of 17.71 million tonnes in 2020-21 marking an increase of 86 per cent. As demand for rice exports increased, shortage of containers has become a cause for concern. The shortage of containers has also pushed up prices.</strong></p>
<p>
According to <a href="https://indiaseatradenews.com/indian-exporters-boxed-in-by-container-crunch-as-rates-rise-to-7000-10000-in-a-fortnight/">India Seatrade News</a>, the expenses for carrying a container from or onwards to India at the moment are going at $7,000-$10,000, up from $3,000-$4,000 six to eight months in the past.</p>
<p>
A container from India enroute the US that took about 90 days in the pre-Covid phase, takes about 150 days at present.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/world-news/india-is-now-china-s-main-rice-supplier-126851.html">India is now China's main rice supplier</a></strong></p>
<p>
This has hit Indian exporters at a time when supplies from other rice producing countries such as Myanmar, Thailand and Vietnam among others are opening up and overall prices of the grain are easing.</p>
<p>
In 2020-21, India topped the list of rice exporting countries fetching $8.82 billion in foreign exchange. Among agriculture items, rice is the biggest foreign exchange earner.</p>
<p>
“Shortage of containers is coming as a challenge for exporters and the issue must be resolved at the earliest,” Vinod Kaul, executive director, All India Rice Exporters’ Association told India Narrative.</p>
<p>
Kaul said exports to countries in the Middle East, Europe besides the US have become of challenge.</p>
<p>
The kharif rice production in the current financial year is set to touch a record level of 107.04 mt — slightly higher than the 104.41 mt produced in the previous fiscal year.</p>
<p>
Sources said that despite the farmers’ agitation over the three farm sector bills that were introduced in Parliament, production has increased.</p>
<p>
“What is worrying is the non availability of containers,” an exporter said.</p>
<p>
Meanwhile, Prime Minister Narendra Modi has announced repealing of the three bills.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/latest-news/india-records-rise-in-export-of-agricultural-processed-food-products-129393.html">India records 15% rise in export of agricultural, processed food products</a></strong></p>
<p>
In September 2020, the government introduced three farm reform bills — The Farmers’ Produce Trade And Commerce (Promotion And Facilitation) Bill, The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, and The Essential Commodities (Amendment) Bill. These bills, aimed at creating a free market for sale of farm produce and removing the involvement of middlemen, have faced stringent opposition from farmers across.</p>
<p>
Since then farmers’ organisations along with several other vested groups have been vehemently protesting against the move.</p>

Mahua Venkatesh

Mahua Venkatesh specialises in covering economic trends related to India and the world along with developments in South Asia.

Recent Posts

India’s firm response through Op Sindoor against Pakistan comes under PM Modi’s leadership

Prime Minister Narendra Modi has led India's decisive response to the April 22 Pahalgam terror…

1 hour ago

PM Modi holds meeting with Rajnath Singh, Jaishankar, NSA, CDS, service chiefs

Prime Minister Narendra Modi chaired a meeting at his residence on Monday, which was attended…

2 hours ago

Armed Forces reveal details of damage done to Pakistani air bases in retaliation to cross-border attacks

India's retaliation against Pakistan's heavy shelling and attempted drone attacks in Jammu-Kashmir and regions along…

3 hours ago

Taliban bans chess in Afghanistan over religious concerns

The Taliban has banned chess in Afghanistan due to religious concerns, continuing its opposition to…

4 hours ago

US State Department welcomes wisdom, prudence, statesmanship shown by India, Pakistan

The US State Department welcomed the understanding reached by India and Pakistan on the cessation…

4 hours ago

10 satellites working to ensure safety and security: ISRO Chief V Narayanan

Indian Space Research Organisation (ISRO) Chairman V Narayanan said that at least 10 satellites are…

5 hours ago