New avenues for augmenting and sustaining rice exports from India

K. Krishniah and N. Shobha Rani

Project Director and Senior Scientist, Directorate of Rice Research, Rajendra Nagar, Hyderabad 500030, Andhra Pradesh, India

DOMESTIC RICE SCENARIO

Worldwide, India stands first in rice area and second in rice production, after China. It contributes 21.5 percent of global rice production. Within the country, rice occupies one-quarter of the total cropped area, contributes about 40 to 43 percent of total foodgrain production and continues to play a vital role in the national food and livelihood security system. Throughout the post-independence era, unparalleled developments have taken place as a result of the green revolution. A combination of increased area and greater cropping intensity transformed India from a net importing country in the mid-1960s to a potential exporter of quality rices by the early 1990s. The development and rapid adoption of high-yielding rice varieties from the late 1960s contributed to phenomenal output growth and enhanced the per caput availability of rice, despite a doubling of the population (Tables 1 and 2). The growth in area was from 36.44 million ha in 1967/68 to 42.84 million ha in 1995/96, representing an annual growth rate of 0.39 percent. During the same period, production surged from 37.61 million tonnes to 77.0 million tonnes, a growth rate of 1.76 percent per year. These major production and productivity gains have enabled the country to attain and sustain self-sufficiency in rice since the early 1980s. Nevertheless, India did not become a major rice exporting country for a long time. Its share in world rice trade, mainly in the form of small-volume exports of highly prized basmati rice, was insignificant (5 percent). It was not until the mid-1980s that the quantum of export started to grow, from 110 000 tonnes in 1978/79 to 890 613 tonnes in 1994/95 and to a record 5.5 million tonnes in 1995/96, second only to Thailand (at 5.9 million tonnes). This represented a sixfold increase over the previous year and was caused by significantly high volumes of non-basmati rice exports. The recent spurt in rice exports has disproved doubts about India's capability to maintain self-sufficiency and produce a surplus for export. However, concrete strategies and pragmatic policies are needed in order to take advantage of the new trade opportunities in the post-General Agreement on Tariffs and Trade (GATT) period. At the same time, the backdrop of domestic food security based on supply and demand calls for a raising of the buffer stocks with a view to improving poorer sections' access to subsidized foodgrains and making agriculture an economically viable proposition to all those who are involved in it.

AGRICULTURAL EXPORTS AND RICE

A decade ago, basmati rice was the only Indian product to have an export turnover of more than 500 million rupees (Rs). By 1996/97, the export basket had diversified to 21 products, with agricultural exports accounting for a 19.1 percent share of the total. Rice has become one of the major exportable commodities, with a 9 percent share in total agricultural exports for 1994/95, rising to 22.4 percent in 1995/96 (Table 3).

For many years, the world rice market was small and less than 4 percent of total rice production was traded. In the 1990s, this figure registered slight growth to more than 5 percent, with the quantity of rice traded varying between 14 and 20 million tonnes annually. Predictions were that, in 1998, world rice trade would exceed 24 million tonnes, a sharp 30 percent increase over the previous year's 18.93 million tonnes. The greatest volume recorded was 21 million tonnes in 1995. The demand for more rice is mainly the result of increased imports by Indonesia, the Philippines, Bangladesh and Brazil, with rice exporters for the triennium ending in 1997 being Thailand (27.7 percent), Viet Nam (14.7 percent), the United States (13.3 percent), India (16.0 percent), Pakistan (9.0 percent), Australia (2.7 percent), China (1.7 percent) and others (14.9 percent). Although traditionally it is a major exporter of aromatic rice of basmati quality, India has also made a mark in the non-basmati category since the beginning of the 1990s. As the demand for japonica rice has risen, with Japan, the Republic of Korea and Taiwan Province of China opening their markets under the provision of the World Trade Organization's (WTO) minimum access opportunities to signatory nations. India is exploring the possibilities of entering into this market by conducting pilot studies under the aegis of the Directorate of Rice Research (DRR), Hyderabad.

RICE EXPORTS FROM INDIA

Of the 15 to 18 million tonnes of rice traded annually in the world market, basmati rice accounts for less than 10 percent. But basmati rice generates three times higher returns (US$800 to $1 200 per tonne) than non-basmati rice ($200 to $400 per tonne) in both international and domestic markets. From a small beginning in 1978/79, when India exported 67 000 tonnes of basmati rice, earning modest foreign exchange of Rs 3 200 million, an upward swing continued and 1997/98 witnessed the highest volume of basmati rice exports with record foreign exchange earnings of Rs 16 749 million. Superfine long grain (> 6.61 mm long), a characteristic pleasant aroma, extra elongation on cooking (> 1.8 times) and the soft texture of cooked rice are the typical features of basmati rice. Basmati 370 (Punjab Basmati), Karnal Local (Taroari Basmati), Type 3 (Dehradun Basmati) and Basmati 217 (Pakistan Basmati) are some of the traditional types that qualify for export among the hundreds of indigenous aromatic rices available in India.

Non-basmati rice has also become a major item for export promotion, registering a steady upwards trend in recent years. From a mere 28 422 tonnes in the triennium to 1988/89, non-basmati exports rose to a record level of 53 000 tonnes until 1991/92, but declined back to 25 000 tonnes during the 1992-1994 triennium. The highest quantum exported was 5.1 million tonnes in 1995/96, earning foreign exchange amounting to Rs 37 170 million. Non-basmati rice of indica type constitutes more than 80 percent of the world rice trade.

RESEARCH EFFORTS TOWARDS GENETIC ENHANCEMENT OF QUALITY RICES

Development of basmati rices

The Genetic Enhancement of Quality Rices for Higher Productivity and Export network operates from 11 centres, in Kapurthala, Kaul, New Delhi, Pantnagar, Ludhiana and RS Pura, and has two testing centres (Banswara, Varanasi) coordinated by DRR, Hyderabad. Within a short span of two to three years, genetic enhancement has led to the release of Pusa Basmati 1, the first semi-dwarf high-yielding basmati variety, which is now being accepted in world markets. The programme accelerated further and has since led to the release/identification of the basmati varieties and lines described in the following. These rices combine higher yield, resistance to key pests and diseases and high standards of quality (Table 4).

Varietal identification

Kasturi, released for the traditional basmati growing areas of Punjab, Haryana, Western Uttar Predesh and Himachal Pradesh, combines high-yield potential, excellent milling quality, resistance to blast and tolerance to stem borer.

Haryana Basmati 1, released for traditional basmati growing areas, has improved milling quality and resistance to blast and WBPH.

Ranbir Basmati, an early selection from variety Basmati 370, comparable to the parent variety in quality, was released in Jammu and Kashmir.

Taroari Basmati, a pure-line selection from the variety Karnal Local (HBC 19) released in Haryana, is a tall, low-yielding type with excellent quality features.

Basmati 385 and Basmati 386, introduced from Pakistan and released in Punjab, have tall plant stature and quality that is on a par with Taroari Basmati.

IET 13548 and IET 14131 showed much promise in all-India coordinated trials and were proposed for on-farm testing during rice workshops in 1995 and 1996. IET 13548 (RP 3238-33-15-7-1) is a hybrid derivative with a 38.5 percent yield improvement over Taroari Basmati and quality comparable to its and to Pusa Basmati 1's. IET 13548 possesses moderate resistance to leaf blast and leaf folder. IET 14131 (RP 3138-16-9-6-6), another hybrid derivative with a 23 percent yield advantage over Taroari Basmati and on par with Taroari Basmati and Pusa Basmati 1 in quality, has built-in tolerance to leaf blast, neck blast and stem borer (Table 5).

IET 13846, IET 14132, IET 14707 and IET 14720 are the other promising cultures that have emerged from the programme.

Among these, Taroari Basmati followed by Pusa Basmati 1 account for most of the basmati rice exported from India. However, it is expected that the release and cultivation of some of the newly developed varieties would further enhance the export quantum of basmati rice from the country. To ward off the likely non-tariff barriers on account of pesticide residue, the basmati breeding programme has been further accelerated to incorporate desired levels of resistance to blast bacterial leaf blight, WBPH and stem borer. Advanced molecular techniques for splicing selected resistance genes cloned from resistant varieties into improved basmati varieties are also being tried. Improvement of milling quality, especially milling outturn and head rice recovery, are the other breeding objectives.

Development of basmati hybrids

Under a project on the development and use of hybrid rice technology, sponsored by the Indian Council of Agricultural Research (ICAR) the United Nations Development Programme (UNDP) and FAO, development of basmati hybrids is one of the important objectives. Of the 41 hybrids involving Pusa 3 A (basmati A line), two combinations, Pusa 3A/PRR 69 and Pusa 3A/PRR 71, were promising and had quality features in the satisfactory range. The programme is being strengthened under the second phase of the ICAR/UNDP/FAO project.

Appropriate cultural and post-harvest practices

Agronomic practices aimed at optimizing results from basmati varieties, especially regarding date of planting and nutrient management recommendations, are being adopted. Transplanting 30-day-old seedlings in the first two weeks of July, together with the application of 90 kg nitrogen (N), 30 kg phosphorus compound (P₂0₅ ) and 25 kg zinc sulphate per hectare for dwarf basmati varieties and 60 kg N per hectare for traditional basmati varieties, has been found to improve yield and quality.

Time of harvest and method of drying determine the milling quality. Results have proved that harvesting the crop 33 to 36 days after 50 percent flowering, followed by shade drying are the ideal practices.

Identification of non-basmati quality rices

Systemic research to identify ideal non-basmati varieties for export was undertaken under the same research network (Genetic Enhancement of Quality Rices for Higher Productivity and Export) at four research centres - Raipur, Aduthurai, Faizabad and Nellore - and one testing centre (Siruguppa). The twin strategies of research include identification of varieties suitable for export from among those released, and objective breeding for the quality traits sought by traditional rice-importing countries. The main selection criteria for the breeding programme are fineness of the grain, high head rice recovery, and preferred starch characteristics, which govern the cooking quality of rice (intermediate amylose and gelatinization temperature, soft gel consistency).

Among the 155 high-yielding varieties released in several states, 11 of the long slender and eight of the medium slender categories were rated as good in terms of quality, based on high head rice recovery and starch characteristics. IR 64, Prakash, Saleem, Krishna Hamsa and PR 106, from the long slender group, and Samba Mahsuri, Sona Mahsuri, Krishna Veni, Kavya, Kamini and White Ponni, from the medium slender group, were some of the notable varieties (Table 6) that can be exploited for export. A large volume of breeding material has been developed at the research centres and several lines that fulfil the quality parameters set forth in the objectives have been entered into coordinated trials for evaluation.

NEW AVENUES FOR EXPORT

Opening of Japanese rice markets and prospects for Indian rice

The emergence of Japan as the largest importer of japonica rice as a result of GATT was one of the important developments of the mid-1990s. The United States, Australia, Thailand, Taiwan Province of China and the Repubic of Korea are the major producers of japonica rice, capable of exporting this short grain rice according to the stringent restrictions imposed by the Japanese Food Agency. The expanding Japanese import market of 800 000 tonnes is not accessible to India, because the cultivation of japonica varieties there is confined to limited areas (foothills of Himalayas and northern eastern hills) that have a tradition of growing japonica-type semi-sticky rices, resulting in the quantities produced being insufficient for export.

DRR in Hyderabad carried out a trial of japonicas during kharif 1995 with five japonicas obtained from Japan. The results of multilocation testing of japonicas for three years on hills and plains (Table 7) indicated that Koshihikari and Hinohikari, the two varieties that have wide consumer preference in southern Japan, are promising in terms of both yield and quality in the hills (Malan, Katrain, Almora). Yamadanshiki, an unimproved variety used for making wine, was found promising in the plains (Kapurthala, Ludhiana, New Delhi). The possibilities for cultivating the three japonica varieties identified in areas that are suitable for export can be ascertained. In addition, Norin 18, a japonica variety, was released in Himachal Pradesh as Naggardhan, while Rongili and Bhogali, two low amylose varieties released in Assam, may also prove suitable for export.

Use of short grain aromatic rices

In addition to growing unique long grain basmati varieties, India also abounds with hundreds of short grain aromatic types which enjoy patronage in certain parts of the country on account of their desirable cooking and eating quality features (Table 8). These varieties include Ram Tulsi and Tulsimanjari in Bihar; and Gopalbhog Govindabhog, Karninibhog, Kataribhog and Randhunipagal in West Bengal; Dubraj and Baspatri in Madhya Pradesh; Type 812 and Badshahbhog in Orissa a Prasadbhog; Malbhog in Assam; and Kalasukhdas, Kalanamak, Hansraj Ramjaiwain, Sakkarchinni, Bindli, Lalmati, etc. in Uttar Pradesh. These are popular in making sweet rice (kheer) preparations in northern and eastern India. Small volumes of medium and short grain rices of both semi-sticky japonica and indica types are traded internationally.

Rice-based products

A large number of ready-to-eat foods have been common in India for hundreds of years, but modernization and product diversification as means to enhance the income and employment opportunities in rural as well as urban areas need to be promoted. Japan, China and the United States have been successful in developing and using a variety of rice-based products from cakes and crackers to sakes (rice wines) and noodles. In the United States, 21 percent of rice produced is used in processed foods and another 20 percent in making alcoholic beverages. Hence, through planned plant breeding activities, varieties associated with specific cooking, eating and processing characteristics and product uses have been developed (Table 9). For example, United States long grain varieties, which cook dry and fluffy, are used for parboiled rice, quick-cooking rice, canned rice, canned soups, dry soup mixes and other convenience products. Medium and short grain varieties, which cook moist and chewy, are used for dry breakfast cereals, baby foods and in brewing. Waxy (glutinous) rices are used in speciality sweet rice preparations. Varieties with variable starch profiles specific to a particular product or preparation have been identified for making many kinds of processed products. Rice-based products that have been popular in India for a long time include rice flakes (poha avalakki), popped, puffed or expanded rice, which are processed from rice or paddy; idli, dosa, papads, vermicelli, crispies, muruku, etc., which are prepared from wet-ground rice paste or dry-ground rice flour; and fermented or deep-fried preparations made from a mixture of rice and pulses.

Value addition to foods is achieved through many ways: processing into products with a precise utilization (expanded rice, noodles, baby foods); combining multiple ingredients in products that promote health and well-being (fruited cereal flakes, ready mixes for traditional foods); and improving quality by adding nutrients that are otherwise lacking. The various types of processes used in value addition include fermentation; fortification; nutrient supplementation; extending the shelf-life of products through drying, canning and appropriate storage; and imparting visual appeal through roasting, freezing, toasting, baking, grinding, flaking, the use of additives (colours and flavours) and packing. Premier institutes in India, such as the Central Food Technological Research Institute (CFTRI) and Defence Food Research Laboratories (DFRL), in Mysore, are pioneers in the field of food technology and food engineering and are engaged in conducting research in cereal science with particular reference to rice. The research and development (R&D) of CFTRI has introduced mechanization into the production of traditional foods such as idlis, dosas and papads, while DFRL has developed products with application, not only in defence, but also in consumer sectors. These include, to name a few ready-to-eat products with a shelf-life of one year, a composite breakfast cereal bar, Insta Nutro cereal mix (bisibele Mat), instant khicidi mix, instant pulav mix, instant basmati rice and instant rava idli mix.

Use of by-products: rice bran oil

Rice bran is an important by-product of the rice milling industry. It constitutes about 5 to 7 percent by weight of the brown rice and is abundant in oil (18 to 20 percent in raw rice bran, 22 to 25 percent in parboiled rice bran). The deoiled bran, which is a rich source of protein (17 to 20 percent) and vitamins (vitamins A and E), is used as a cattle and poultry feed. It commands a good market both within India and abroad and is a good source of foreign exchange earnings. The country earned Rs 220 million¹ and Rs 193.8 million in foreign exchange during the years 1994/95 and 1996/97, respectively, by exporting considerable quantities of oilmeal which included deoiled rice bran. As for rice bran oil (RBO), the country has a potential to produce over 900 000 tonnes per annum with the total production of rice during 1996/97 being 81.3 million tonnes. The current production of RBO is estimated at 400 200 tonnes per annum, of which about 200 800 tonnes is of edible grade and the balance, 100 400 tonnes, non-edible grade. The edible grade RBO is used in the manufacture of vanaspati. About 50 000 tonnes is refined, packed and sold to consumers as cooking oil. The difference between the potential and the actual production of RBO in the country is due to the non-availability of quality rice bran, which in turn is dependent on the type of milling equipment used. Today there are approximately 90 500 hullers and some 39 000 shellers/modern mills in India.

MEASURES FOR SUSTAINING RICE EXPORTS

There is immense scope for India to take advantage of the new trade opportunities that sustain the export of rice and processed products of rice. However, this can be achieved only if production increases are made possible by increased investment in R&D coupled with realistic policy incentives adopted by the government. The following are some of the measures suggested to sustain the export of rice:

• acceleration of breeding efforts in the development of high-yielding export-quality rices (basmati, non-basmati, short grain scented, etc.) to produce a sustained surplus for export; identification of contiguous belts for the cultivation of export-quality rices;
• maintaining quality standards that match those of international markets; organizing the production, procurement and processing of basmati rice for export; contract farming from a few large export houses to ensure quality; assessment of the quality demands of various rice importing countries and development of a strong research base to back up the rice industry; production of quality seeds and ensuring of their availability to farmers at subsidized rates;
• identification of varieties for rice-based products; the development of new products and processing techniques; and the use of attractive biodegradable packing;
• post-harvest care and by-product utilization; export-friendly trade policies with special reference to removing the minimum export price, quota system and exemption from levy obligations; improvement of port facilities; modernization of rice mills to ensure high milling recovery and effective availability of by-products for full utilization; setting up of a board/council to promote the export of rice and rice-based products.

RICE EXPORTS AND FOOD SECURITY

The rice export performance achieved in recent years, although praiseworthy, has raised apprehensions about India's capability to continue as a major rice exporter in the years to come. Many demand-supply studies have revealed that the expansion of rice production in the last three decades has been 2.0 percent per year, which is above the population growth rate of 1.8 percent. This achievement has made India self-sufficient in foodgrains in general and rice in particular, with a small surplus for export. A critical analysis showed that area expansion and the extension of area under irrigation contributed 8.3 and 15.0 percent, respectively, of the increase in food production, while the remaining 74.9 percent came from increased use of fertilizer, increased coverage under high-yielding varieties (HYVs) and adoption of integrated crop management practices. The predictions are that the country requires 95 million tonnes, compared with the present 82 million tonnes, by the end of the Ninth Plan period, if it is to maintain the current level of self-sufficiency. By 2020, some 135 million to 145 million tonnes will be required. Even at present, the per caput availability of 230 grams/day of rice is far below the amount recommended by nutritionists for a balanced diet requirement.

Unless rice production is stepped up, India will not be able to satisfy the recommended rice requirement for any of its citizens, especially that one-third of the population whose lack of purchasing power denies them access to rice and for whom the government has to provide food and livelihood security. The real exportable surplus comes, therefore, from high production - what is left after food demands within the country have been satisfied. However, the diminishing natural resource base is already having a negative impact on the food production growth rate, which dropped from 2.89 percent in 1981-1989 to 2.37 percent in 1990-1996. In the case of rice the decline was even greater, from 4.37 to 2.02 percent for the same period, leading to concerns about how to ensure food security for all against such deceleration.

With practically no scope for expanding the rice area, vertical yield improvement of at least 2.5 to 3.5 percent per year is the only option to achieve the production targets of the coming decades (Table 10). The northern states of Punjab, Haryana and Uttar Pradesh, accounting for 18.8 percent of India's total rice area, contributed more than 25 percent of total rice production in 1990/91, while the eastern states of West Bengal, Assam, Bihar, Madhya Pradesh and Orissa, accounting for 53.5 percent of the rice area (almost three times that of the northern states), contributed 42 percent of rice production with a yield level, at 1.8 tonnes/ha, lower than the national average of 2.7 tonnes/ha on a paddy basis. There is, therefore, still vast scope for sustaining and further increasing the present level of rice production by stepping up the yield level in the favourable rainfed lowlands of eastern regions and extending the boro rice area where high groundwater potential exists.

The studies also emphasize that substantial trade from India can only take place if total factor productivity (TFP) growth is maintained at historical levels and factors that influence it, such as investment in irrigation, research and technology development and transfer, and the building-up of market infrastructure as well as suitable land, water and nutrient management methods are adopted. Once these factors have been taken care of, the availability of rice for export may grow steadily to 4.1 million tonnes by 2010. Furthermore, along with R&D efforts, export promotional activities such as scientific milling techniques, grading, branding and attractive packaging, value addition, sophisticated material handling equipment and services should receive focused attention. Once accelerated research and clear export policy decisions have been made and effectively managed, the share of agricultural exports in general can be increased from the present level of 19 percent to about 20 to 25 percent over the next five to ten years.

Nouvelles approches pour augmenter et soutenir les exportations de riz
à partir de l'Inde

Le riz a commencé à être commercialisé au début des années 90, lorsque les variétés génétiquement améliorées et les technologies de gestion ont été largement adoptées et ont permis de doubler la production, de réduire les importations, et ont donné à l'Inde la possibilité de pénétrer sur les marchés mondiaux. Le secteur agricole a contribué à hauteur de 19,1 pour cent aux exportations totales et, parmi les céréales, le riz est devenu un produit phare des exportations, puisqu'il représente un tiers des recettes d'exportation. Au début, les échanges ne concernaient que le riz basmati. Vers les années 90, d'autres variétés ont également gagné du terrain et le pays est devenu le deuxième exportateur mondial de riz en 1995, année exceptionnelle au cours de laquelle la quantité totale de riz exporté a atteint un nouveau record avec 5,5 millions de tonnes qui ont procuré au pays le niveau le plus élevé de devises, soit 45,53 milliards de roupies. Le présent document donne un aperçu des résultats du riz à l'exportation, des efforts de la recherche pour la mise au point de variétés de riz basmati et non-basmati, destinées à l'exportation, des possibilités d'exporter du riz japonica et des produits à base de riz. Il décrit également le maintien du niveau des exportations en tenant compte des contraintes de la sécurité alimentaire du pays, ainsi que toute une série de mesures visant à augmenter les exportations, dans le cadre de la libéralisation
des échanges.

Nuevas posibilidades de aumento y sostenimiento de las exportaciones de arroz
de la India

El arroz se ha convertido en artículo de comercio desde principios de los años noventa con la adopción general de variedades genéticamente mejoradas y tecnologías de ordenación que han duplicado la producción, reduciendo las importaciones y proporcionando a la India un trampolín para introducirse en los mercados mundiales. El sector agrícola ha contribuido a un 19,1 por ciento de las exportaciones totales, y entre los cereales, el arroz se ha convertido en un artículo propulsor de las exportaciones, ascendiendo a un tercio su contribución a los ingresos de divisas. En los primeros años se trató únicamente de arroz basmati, que monopolizaba todo el escenario indio del comercio arrocero. Pero para los años noventa otras variedades de arroz también ganaron terreno, tanto es así que el país se convirtió en el segundo mayor exportador de arroz del mundo en 1995, año excepcional en que la cantidad total de arroz exportado alcanzó una nueva cota máxima de 5,5 millones de toneladas, con unos ingresos máximos de divisas del orden de 45 530 millones de rupias.
En este artículo se describen los resultados de la exportación de arroz en general, los esfuerzos de investigación realizados para desarrollar variedades de arroz basmati y no basmati de calidad exportable, las posibilidades de exportación de arroz japonica y de productos del arroz, el sostenimiento de las exportaciones sin perder de vista los imperativos de la seguridad alimentaria nacional, así como medidas para aumentar las exportaciones en esta era de liberalización del comercio de forma total.

¹ US$1 = approximately Rs 45, July 2000.