Latest Kannada Business news : Rice prices will increase further, sown area reduced by 13 percent due to less rain, may also affect exports

New Delhi. Due to less rainfall in the major rice producing areas of the country, this time there has been a tremendous reduction in the area under rice cultivation. Rice acreage in the country has come down to a three-year low. Due to reduction in the area under rice cultivation and increase in export demand, the price of rice in the country has also started going up. In some areas, the rates of many varieties have increased by up to 10 percent.

If India’s rice production declines, it will also pose a crisis for global food security. India is the largest rice exporter country in the world. India accounts for 40 per cent of the total global rice trade. The Russo-Ukraine war has already led to a steep rise in food prices. Now if there is a fall in rice production in India, then it will increase the inflation in the world.

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13% reduction in planting area
According to a report in Live Mint, rice planting has been affected due to lack of rain this monsoon season. There has been very little rain especially in the paddy growing areas of West Bengal and Uttar Pradesh. Because of this, the planting here is badly backward. These two states account for 25 percent of the total rice production of the country. Apart from these, there are reports of less transplanting from Bihar, Jharkhand, Telangana, Chhattisgarh and Odisha.

Fear of export ban
Traders say that due to reduction in rice production, it will be very difficult to control inflation in India. If the production of this major commodity is low, then its export may also be banned. India exports rice to about 100 countries.

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rising prices
Due to increasing export demand and fears of low production, the rates of rice in India have started increasing. In states like Bengal, Odisha and Chhattisgarh, the prices of some varieties of rice have gone up by as much as 10 per cent in the last two weeks. Retail prices of rice have jumped 25 per cent in Kolkata in the last one year (till July 29), while in Ranchi it has risen by 11.4 per cent and in Chennai by 5.5 per cent. Mukesh Jain, director, Rice Shippers Sponge Enterprises Limited, says that the export price of rice is also increasing and it is likely to be $ 400 a tonne by September. Currently, the rice export price is $365 per tonne.

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Tags: business news, Business news in hindi, inflation, Rice