NAME NAME: NITISH SINGH

ROLL NO.: BBA 39

SEMESTER: 5th (3rd year)

COURSE: BACHELOR OF BUSINESS ADMINISTRATION (HONS.)

SUPERVISOR: Mr. Mohammed Feroz

TOPIC: RICE INDUSTRY IN INDIA

PAPER: BBA 508 Term Paper submitted in partial fulfillment of the requirements of the Graduate Degree in BACHELOR OF BUSINESS ADMINISTRATION (HONOURS) J.D. BIRLA INSTITUTE Affiliated to JADAVPUR UNIVERSITY At KOLKATA
1

Date: 03/01/2013

To, The Controller of Examination, Jadavpur University, Kolkata.

Respected sir,

This term paper has been done by me and is an original work. The references used have been mentioned in the bibliography.

This term paper work is partial fulfilment of the requirement for the BBA degree to be awarded by Jadavpur University.

Yours faithfully,

(Nitish Singh)

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DECLARATIONS:

To include plagiarism and ethical issues statements and word count is a formal requirement.

I declare the following:

(1) That the material contained in this dissertation is the end result of my own work and that due acknowledgement has been given in the bibliography and references to ALL sources be they printed, electronic or personal.

(2) The word count of this dissertation is 14875.

(3) That unless this dissertation has been confirmed as confidential, I agree to an entire electronic copy or sections of the dissertation to being placed on the e-learning portal, if deemed appropriate, to allow future students the opportunity to see examples of past dissertations. I understand that if displayed on the e-learning portal it would be made available for no longer than five years and that student would not be able to print off copies or download. The authorship would remain anonymous. (4) I agree to my dissertation being submitted to a plagiarism detection services, where it will be stored in a database and compared against work submitted from this or any other school or from other institutions using the service.

In the event of the service detecting a high degree of similarity between content within the service this will be reported back to my supervisor and second marker, who may decide to undertake further investigation that may ultimately lead to disciplinary actions, should instances of plagiarism be detected.

I declare that ethical issues have been considered, evaluated, and appropriately addressed in this research. SIGNED:
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ACKNOWLEDGEMENT

This dissertation examines the Rice industry on India. The report has been written as part of the course program for Bachelors of Business Administration at the J.D. Birla Institute.

I am thankful to the director of this institute- Dr. Asit Dutta, for incorporating such an exercise into the course since it has presented me with an excellent opportunity to explore and enjoy my analytical and report-writing skills, consequently preparing me for my corporate future.

In addition, I would also like to thank my supervisor at J.D. Birla Institute – Mr. Mohammed Feroz for his generous support and guidance. I would like to express thanks to the librarians for the use of various textbooks from the learning resource center at J.D. Birla Institute, which provided me with background information about the academic topics that have been applied in the project.

It has been a pleasurable challenge and I look forward to many more such experiences.

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INDEX

NO. 1 2 3 4 5 6 7 8

CONTENTS INTRODUCTION LITERATURE REVIEW RESEARCH METHODOLOGY DATA ANALYSIS RESULTS AND FINDINGS CONCLUSION ANNEXURE BIBLIOGRAPHY

PAGE NO. 6 7 31 34 39 40 41 60

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1. Introduction[1][2] Rice is the seed of the monocot plants Oryza sativa (Asian rice) or Oryza glaberrima (African rice). As a cereal grain, it is the most widely consumed staple food for a large part of the world's human population, especially in Asia and the West Indies. It is the grain with the second-highest worldwide production, after maize (corn), according to data for 2010. Since a large portion of maize crops are grown for purposes other than human consumption, rice is the most important grain with regard to human nutrition and caloric intake, providing more than one fifth of the calories consumed worldwide by the human species. Rice provides about 22 percent of the world supplies of calories and 17 percent of the proteins. Maximum area under rice is in Asia. Among the rice growing countries, India has the largest area (40.2 million) hectares followed by China and Bangladesh. Average rice yield of India is only 1339 kg per hectare. In India rice is grown in almost all the states. Rice covers world’s largest area (28%) covering 42.3 million hectares with a total production of 80 million tonnes annually.Its area is 37% of the total area under food against as against 20% under wheat, another important food crop.But globally it stands next to wheat in harvested area.It is grown in diversified soil, topographical and hydrological situations ranging from sloppy uplands to deep-water areas of above 1 metre depth.It is adapted to cold temperatures that exist in hilly areas and also in the adverse soil conditions such as salinity, alkalinity and acidity.It is a staple food crop of 60 per cent of world’s population.Mostly it is cooked with water.Other edible uses include rice flakes and puffed rice, rice wafers and canned rice.It is also used starch and brewing industries. Rice is the second most widely consumed cereal in the world next to wheat. It is the staple food for two thirds of the world’s population. Over 2 billion people in Asia alone derive 80% of their energy needs from rice, which contains 80% carbohydrates, 7–8% protein, 3% fat, and 3% fiber.

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2. LITERATURE REVIEW
1. HISTORY[3] Starting in 2500 B.C., rice has been a source of food for people. Rice production originated in China, and was spread to countries such as Sri Lanka and India. It is believed that rice was brought to West Asia and Greece in 300 B.C. by Alexander the Great's armies. In 800 A.D., people in East Africa traded with people from India and Indonesia and were introduced to rice. It was a common belief in the Middle Ages that rice fields were a breeding ground for Malaria. People believed that mosquitos easily laid their eggs in the water of the rice fields. It is hard to say exactly how rice was brought over to North America. One story says that a damaged ship was forced to dock in the Carolinas. In return for repairs, the captain of the ship gave the colonizers a bag of rice. In addition, it is believed that slaves from Africa brought rice from their land. In 1700, 300 tons of American rice was shipped to England. After the Civil War came to an end, rice was produced all over the South. In the United States, rice is mainly grown in California, Mississippi, Texas, Arkansas, and Louisiana. The United States has adopted new technology and machinery to produce rice. On average, it takes around 7 man-hours per acre to cultivate rice. In Asia, it can take 300 man-hours to cultivate an acre of rice. On average, an American consumes around 25 pounds of rice a year. In parts of Asia, a person can consume between 200 and 400 pounds of rice a year! HISTORY IN INDIA[4] India is an important center of rice cultivation. The rice harvesting area in India is the world's largest. The two major rice varieties grown worldwide today are Oryza sativa indica and Oryza sativa japonica. According to research studies, they owe their origins to two independent events of domestication thousands of years ago. Historians believe that while the indica variety of rice was first domesticated in the area covering the foothills of the Eastern Himalayas (i.e. north-eastern India), stretching through Burma, Thailand, Laos, Vietnam and Southern China, the japonica variety was domesticated from wild rice in southern China which was introduced to India before the time of the Greeks. Chinese records of rice cultivation go back 4000 years. The earliest remains of cultivated rice in the sub-continent have been found in the north and west and date from around 2000 BC. Perennial wild rices still grow in Assam and Nepal. It seems to have appeared around 1400 BC in southern India after its domestication in the
7

northern plains. It then spread to all the fertile alluvial plains watered by rivers. Cultivation and cooking methods are thought to have spread to the west rapidly and by medieval times, southern Europe saw the introduction of rice as a hearty grain. Some says that the word rice is derived from the Tamil word arisi. Rice is first mentioned in the Yajur Veda (c. 1500-800 BC) and then is frequently referred to in Sanskrit texts. In India there is a saying that grains of rice should be like two brothers, close but not stuck together. Rice is often directly associated with prosperity and fertility, hence there is the custom of throwing rice at newlyweds. In India, rice is always the first food offered to the babies when they start eating solids or to husband by his new bride, to ensure they will have children. FACTS ABOUT RICE[5]  Rice is the second highest worldwide production after maize (corn). Since maize is mostly grown for purposes other than human consumption, rice is the most important grain for human consumption. There are more than 40,000 varieties of rice that grow on every continent except on Antarctica. Some research shows that rice may have been indigenous to India over 4,000 years ago and moved eastward to Indochina and to Southeast Asia. In Burma, a person consumes about five-hundred pounds of rice a year. In the USA, a person consumes about twenty pounds of rice a year, with about four pounds attributed to the use of rice is for brewing American beers. There is enough rice that grows in Arkansas, California, Louisiana, Texas, Mississippi and Missouri to rank the USA as the twentieth largest rice producer in the world and the second largest exported of rice. About half of all the rice grown in the USA is exported. Thailand is the first exporter of rice. Rice is a symbol of life and fertility, which is why rice was traditionally throw at weddings. After rice has been fully cooked, each grain of rice swells to three times in original weight. Japanese people believe it is important to not waste rice, so it you leave rice in your bowl it is considered to be rude. Rice hulls can be burned to provide energy.
8

    

    

2. CLIMATE REQUIRED FOR GROWTH OF RICE[6] India lies between 8° and 35° N latitude, with a tropical and sub-tropical climate. Among the various weather elements, rainfall is the most single important factor, which determines the extent, growth and production of rice crop. Rice is indigenous to the humid area of tropics, subtropics and temperate regions. It has a wide physiological adaptability and is grown successfully from below the sea level to 2000 meters above the sea level. There are many varieties of rice which are cultivated with differential response to climatic factors, such as temperature, rainfall and day length. The soil types and different physiographic factors are also quite relevant in the cultivation of rice crop. The indica varieties of rice (Oryza sativa ) are grown mainly in the tropical countries. These varieties are photosensitive and maturity period is affected with the date of planting. Rainfall is the most important weather element for successful cultivation of rice. The distribution of rainfall in different regions of the country is greatly influenced by the physical features of the terrain, the situation of the mountains and plateau. The regions experiencing very heavy rainfall in the country are given:1) Western Ghats (the western slopes and the coastal region.) 2) In the Assam region. 3) The sub-montane Himalayan region, Deccan plateau, Eastern Ghats with coastal plains and the vast Gangetic plains. Generally south west monsoon from Arabian Sea becomes active on the Malabar Coast in the end of May or in the first week of June. At the same time, the south-west monsoon from the Bay of Bengal also strikes the hills of north-eastern India in the Assam region and in the SubHimalayan West Bengal. Gradually, south-west monsoon extends northwards and reaches western Rajasthan. Rainfall is the most important weather factor to determine the paddy production because rainfall during the active phase of the initiation of panicle primordia is significantly beneficial. Thus, rainfall always gives beneficial effect even when this factor is taken jointly with other climatic elements, such as the mean temperature and sunshine. Therefore, rainfall is one of the most important climatic elements to determine the growth and yield of rice crop. Temperature is another climatic elements which has a favourable and in some cases unfavourable influence on the development, growth and yield of rice. Rice being a tropical and sub-tropical plant, requires a fairly high temperature, ranging from 20° to 40°C. The optimum temperature of 30°C during day time and 20°C during night time seems to be more favourable for the development and growth of rice crop. The low temperature affects the tillering rate. The period of tillering is prolonged due to low temperature but low temperature gives more tillers and more panicles than higher temperature. Low temperature depresses the internodal elongation and thereby induces the partial emergence of panicles. This phenomenon further affects the rate of photosynthesis and also induces partial sterility. However, low temperature during the period of ripening, prolongs the ripening period and enables the plant to maintain green leaves. Such condition contributes to the accumulation of carbohydrates in the grains. Sunlight is very essential for the development and growth of the plants. In fact, sunlight is the source of energy for plant life. The response to solar radiation is a varietal character. The yield of rice is influenced by the solar radiation particularly during the last 35 to 45 days of its

9

ripening period. The effect of solar radiation is more profound where water, temperature and nitrogenous nutrients are not limiting factors. Bright sunshine with low temperature during ripening period of the crop helps in the development of carbohydrates in the grains. Solar radiation is a limiting factor for upland rice, because upland rice is grown during rainy season. Therefore, low productivity in the case of upland rice is a problem in the tropics. 3. IMPORTANCE OF RICE AS A FOOD[24] It has been estimated that half the world's population subsists wholly or partially on rice. 90% of the world crop is grown and consumed in Asia. American consumption, although increasing, is still only about 25 lb (11 kg) per person annually, as compared with 200 to 400 lb (90–181 kg) per person in parts of Asia. Rice is the only major cereal crop that is primarily consumed by humans directly as harvested, and only wheat and corn are produced in comparable quantity. Plant breeders at the International Rice Research Institute in the Philippines, attempting to keep pace with demand from a burgeoning world population, have repeatedly developed improved varieties of "miracle rice" that allow farmers to increase crop yields substantially. Studies have shown that rice yields are adversely affected by warmer night time temperatures, leading to concerns about the effects that global warming may have on rice crops. 4. RICE GROWING SEASONS IN INDIA[7] In India rice is grown under widely varying conditions of altitude and climate. Therefore, the rice growing seasons vary in different parts of the country, depending upon temperature, rainfall, soil types, water availability and other climatic conditions. In eastern and southern regions of the country, the mean temperature is found favourable for rice cultivation throughout the year. Hence, two or three crops of rice are grown in a year in eastern and southern states. In northern and western parts of the country, where rainfall is high and winter temperature is fairly low, only one crop of rice is grown during the month from May to November. There are three seasons for growing rice in India via - autumn, winter and summer. These three seasons are named according to the season of harvest of the crop. Autumn rice is known as pre-kharif rice. The sowing of pre-kharif rice is taken up during May to August. However, the time of sowing slightly differs from state to state according to weather condition and rainfall pattern. It is harvested in September-October. Autumn rice crop is know as 'Aus' in West Bengal, 'Ahu' in Assam, 'Beali' in Orissa, 'Bhadai' in Bihar, 'Virippu' in Kerala and 'Kuruvai/kar/ Sornavari' in Tamil Nadu. About 7% crop is grown in this season. The varieties grown during this season are mostly varieties of short duration ranging from 90 to 110 days. The main rice growing season in the country is the 'Kharif'. It is known as winter rice as per the harvesting time. The sowing time of winter (kharif) rice is June-July and it is harvested in November-December. Winter rice is knowN as 'Aman' in West Bengal, 'Sali' in Assam, 'Sarrad' in Orissa, 'Agahani' in Bihar and Uttar Pradesh, 'Sarava' in Andhra Pradesh, 'Mundakan' in Kerala and 'Samba/Thaladi' in Tamil Nadu. About 84% of the country's rice crop is grown in this season and generally, medium to long duration varieties are grown in this season.

10

Summer rice is called as Rabi rice. It is known as 'Boro' in Assam and West Bengal, 'Dalua'in Orissa, 'Dalwa' in Andhra Pradesh, 'Punja' in Kerala and 'Navarai' in Tamil Nadu and 'Garma' in Bihar. The sowing time of summer rice is November to February and harvesting time is March to June. The area under summer rice is only 9% and early maturing varieties are mostly grown in this season.

5. THE PROCESS OF GROWING RICE[26] Rice production can generally be divided into the following stages: I. Seed selection: Choosing a suitable variety of rice to grow that suits the environment it will be grown in and ensuring the seed choosen of that variety is of the highest possible quality is the essential first step in rice production. Seed is a living product that must be grown, harvested, and processed correctly to maximize its viability and subsequent crop productivity. For the yield potential of any rice variety to be realized, good quality seed must be sown. Good quality seed can increase yields by 5-20%. The extent of this increase is directly proportional to the quality of seed that is being sown. Land preparation:The aim of land preparation for rice production is to place the soil in the best physical condition for crop growth and to ensure that the soil surface is level. Tillage requirements vary according to the cropping system as what may be desirable for one may be totally inappropriate for another. Land preparation involves plowing and harrowing to "till" or dig-up, mix, and overturn the soil, and leveling. Tillage is done to a depth so plants can develop a root system which will physically support the plant and also allow the extraction of sufficient moisture and nutrients so yield potentials can be realized. Tillage also helps with weed control. Farmers can till the land tehmselves using hoes and other equipment or they can be assisted by draft animals, such as buffalo, or tractors and other machinery. Crop establishment: The two main practices of establishing rice plants are transplanting and direct seeding. Transplanting is the most popular plant establishment technique across Asia. Transplanting is when pre-germinated seedlings are transferred from a seedbed to the wet field. It requires less seed and is an effective method to control weeds, but requires more labor. Direct seeding is when dry seed or pre-germinated seeds and seedlings are broadcast by hand or planted by machine. In rainfed and deepwater ecosystems, dry seed is manually broadcast onto the soil surface and then incorporated either by ploughing or by harrowing while the soil is still dry. In irrigated areas, seed is normally pre-germinated prior to broadcasting. Water management: Cultivated rice has a semi-aquatic ancestry and is therefore extremely sensitive to water shortages. When the soil water content drops below saturation, most rice varieties develop symptoms of water stress. Sound water
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II.

III.

IV.

management practices are needed to use water wisely and maximize rice yield. To ensure sufficient water, most rice farmers aim to maintain flooded conditions in their field. This is especially true for lowland rice. Good water management in lowland rice focuses on practices that conserve water (by eliminating the unproductive water flows of seepage, percolation, and evaporation) while ensuring sufficient water for the crop. V. Nutrient management:Ensuring that the rice plant gets the exact nutrients it needs to grow is of great importance. This is because each growth stage of the rice plant has specific nutrient needs. The unique properties of flooded soils make rice different from any other crop. Because of prolonged flooding in rice fields, farmers are able to conserve soil organic matter and also receive free input of nitrogen from biological sources. This biological fixation amounts to enough to help ensure a stable yield of about 3 tons per hectare per crop in the absence of applied nitrogen fertilizer.If higher yields are the target then the rice will need more nutrients. Crop health: The rice plant has a wide array of ‘enemies’ in the field. These include rodents, harmful insects, viruses, diseases, and weeds. Farmers use many different strategies to control these pests and diseases to maintain crop health. Best practice in maintaining crop health revolves around an understanding of the interactions among pests, natural enemies, host plants, other organisms, and the environment to determine what if any pest management may be necessary. Harvesting:Harvesting is the process of collecting the mature rice crop from the field. Depending on the variety, a rice crop usually reaches maturity at around 115-120 days after crop establishment. Harvesting activities include cutting, stacking, handling, threshing, cleaning, and hauling. Good harvesting methods help maximize grain yield and minimize grain damage and deterioration. Harvesting can be done manually or mechanically. Manual harvesting is common across Asia It involves cutting the rice crop with simple hand tools like sickles and knives. Manual harvesting is very effective when a crop has lodged or fallen over, however it is labor intensive. Manual harvesting requires 40 to 80 man-hours per hectare and it takes additional labor to manually collect and haul the harvested crop. Mechanical harvesting using reapers or combine harvesters is the other option, but not so common due to the availability and cost of machinery.

VI.

VII.

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6. RICE CROPPING PATTERN IN INDIA[8] The cropping pattern in different Agro-climatic zones has been adopted by the farmers after long experience based on suitability of soil, profitability, availability of market and industrial infrastructure and quantum of water available. Some of the rice based cropping patterns being followed in the country are discussed below : Rice-Rice-Rice:This crop rotation is most suitable for areas having high rainfall and assured irrigation facilities in summer months, particularly, in soils which have high water holding capacity and low rate of infiltration. In some canal irrigated areas of Tamil Nadu, a cropping pattern of 300% intensity is followed. In such areas three crops of rice are grown in a year. Rice-Rice-Cereals (Other than rice):This cropping pattern is being followed in the areas where the water is not adequate for taking rice crop in summer. The alternate cereal crops to rice being grown are Ragi, Maize and Jowar. Rice-Rice-Pulses:In the areas where, there is a water scarcity to take up cereal crops other than rice in summer, the short duration pulse crops are being raised. Rice-Groundnut:This cropping pattern is being followed by the farmers of Andhra Pradesh, Tamil Nadu and Kerala. After harvesting of rice crop, groundnut is grown in summer. Rice-Wheat:This crop rotation has become the dominant cropping pattern in the Northern parts of the country. Rice-Wheat-Pulses:In this sequence of cropping pattern, after the harvest of wheat, green gram and cowpea as fodder are grown in the alluvial soil belt of Northern states. Besides, cowpea is grown in red and yellow soils of Orissa and black gram is grown in the black soils. Rice-Toria-Wheat:This crop sequence is commonly followed in Northern parts of the country. Rice-Fish farming System:The field with sufficient water retaining capacity for a long period and free from heavy flooding are suitable for rice-fish farming system. This system is being followed by the small and marginal poor farmers in rain fed lowland rice areas. These farmers are not able to invest much in agricultural development. They raise a modest crop of traditional low yielding rice varieties. In order to improve the economic condition of these farmers, the Central Rice Research Institute, Cuttack has developed the production technology for rice and fish farming system. Steps have already been taken to popularize rice-fish farming system in low land areas to increase the production and productivity of crops and thereby improving the economic conditions of the resource poor farmers of these areas. Among the above mentioned cropping patterns followed in the country, Rice-wheat cropping pattern is the largest one and is being practised in the Indo-Gangetic plains of India since long time.

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7. METHODS OF RICE CULTIVATION IN INDIA[9]  Dry or Semi-Dry Upland Cultivation The dry and semi-dry systems of cultivation are mainly confined to tracts which depend on rains and do not have supplementary irrigation facilities. The fields are ploughed and harrowed in summer for achieving the required-tilth. Farmyard manure is uniformly distributed 2-3 weeks before sowing. The seed is sown directly with the onset of the monsoon showers, either by 1. Broadcasting the seed 2. Sowing the seed behind the plough or drilling Line-sowing is preferable, as it ensures an adequate stand establishment and facilitates easy weeding and inter culture. The reduced seed-rate requirement is another advantage. The row spacing may be suitably adjusted from 20 to 25 cm. Under the semi-dry system, the rain-water is impounded when the crop is about 1½-2 months old and thereafter it is converted into a wetland crop. By that time, major operations, such as weeding, inter culturing and fertilizer application might have been completed. 'Beushening' still prevalent in Orissa and Madhya Pradesh under this system helps to control weeds and adjust population. The latest thinking is to promote linesowing using a higher seed-rate so as to have a uniformly higher population density for effective competition from weeds and to use effective methods of inter culture to solve the weed problem.  Wet or Lowland Cultivation The wet system is practiced in areas with assured and adequate supply of water, either by way of rainfall or by irrigation. In Wet or Lowland Cultivation, the distinguishing factorsare: 1. Transplanting in puddled fields 2. Broadcasting sprouted seeds in puddled fields Under Wet or Lowland Cultivation, the land is ploughed thoroughly and puddled with 3-5 cm of standing water in the field. The optimum depth of puddling is found to be around 10 cm in the clay and clay-loam types of soils. The primary objective is to obtain a soft seedbed for the seedlings to establish themselves faster, to minimize the leaching losses of nutrients and thereby increase the availability of plant nutrients by achieving a reduced soil conditions which facilitates a better availability of nutrient elements, to incorporate the weeds and stubble into the soil and to minimize the weed problem. Puddling can be done with ploughs, tillers or tractors, depending upon their availability and soil conditions. The land is leveled after puddling to facilitate a uniform distribution of water and fertilizers.

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8. RICE ECOSYSTEMS IN INDIA[7] Rice is grown under varying Eco-systems on a variety of soils under varying climatic and hydrological conditions ranging from waterlogged and poorly drained to well drained situations. Rice is also grown under rain fed as well as irrigated conditions. These different Eco-systems are discussed below: Irrigated Rice: The total area under irrigated rice is about 22.00 million hectares, which accounts about 49.5 per cent of the total area under rice crop in the country. Rice is grown under irrigated conditions in the states of Punjab, Haryana, Uttar Pradesh, Jammu & Kashmir, Andhra Pradesh, Tamil Nadu, Sikkim, Karnataka, Himachal Pradesh and Gujarat. In these states rice is grown under irrigated conditions more than 50-90%. Rainfed Rice: The rainfed eco-system may be broadly classified into two categories: 1. Upland: Upland rice areas lies in eastern zone comprising of Assam, Bihar, Eastern M.P., Orissa, Eastern U.P., West Bengal and North-Eastern Hill region. In the rain fed upland rice, there is no standing water in the field after few hours of cessation of rain. The total areas under upland rain fed rice in the country is about 6.00 million ha., which accounts13.5 per cent of the total area under rice crop in the country. The productivity of upland rice is very poor. As against the present national average productivity of about 1.9 tonnes per ha., the average yield of rice in upland areas in the country is only 0.90 tonnes per ha. 2. Low land: Low land rice area is mostly located in the eastern region comprising of Assam, West Bengal, Bihar, Orissa , Eastern Madhya Pradesh and Eastern Uttar Pradesh. Low land rice area is about 14.4 million ha., which accounts 32.4 per cent of the total area under rice crop in the country. The average productivity of rice in low land areas ranges from 1.0 to 1.2 tonnes per ha. as against the national average productivity of 1.9 tonnes per ha. The low land rice may be further classified into three categories depending upon the standing depth of water in the field as discussed below :Shallow water: The standing depth of water in the field is generally below 50 cm. The shallow rice area is located in the eastern states viz.- Assam, Bihar, Madhya Pradesh, Orissa, Uttar Pradesh and West Bengal. Semi-deep water: The standing depth of water in the field varies between 50-100 cm. These areas are lying in the eastern states viz. Assam, Bihar, Madhya Pradesh, Orissa, Uttar Pradesh and West Bengal. Deep water: The standing depth of water is more than 100 cm in the field. Such deep water rice areas are mostly situated in the eastern states, viz.-Assam, Bihar, Madhya Pradesh, Orissa, Uttar Pradesh and West Bengal. These areas are subjected to flood occurrence and duration of flooding varies from year to year. Coastal Saline: The coastal area is always subjected with salinity problem and these areas are situated in West Bengal, Orissa, Andhra Pradesh, Tamil Nadu and Kerala. The total area under
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coastal saline rice in the country is estimated about 1 million hectares which accounts for 2.3% each of total area under rice in the country. The yield in coastal saline soil is very poor. Average yield in costal saline area is about 1 tonnes per ha as against the average National yield of 1.9 tonnes per ha. The coastal Saline soils are often affected with deficiency of ferrous and zinc which causes chlorosis and reduced tillering. Cold/Hill: Such rice areas lies in the hill regions comprising of Jammu and Kashmir, Uttranchal and North-Eastern hill states. The total area under rice in cold/ hill region is estimated about 1 million ha which accounts for 2.3% of total area under rice in the country. The productivity in cold/hill areas is very poor. The average yield is about 1.1 tonnes per ha as against the average National yield of 1.9 tonnes/hectare. The major problems of these areas are cold injuries, blast, drought spell and very short span of cropping seasons. Because of the rolling topography in these areas bench terracing is being followed which limits the use of fertilizers and improved agronomical practices. In these areas the crop is sometimes affected due to low temperature in the early stage and sometimes at the flowering times which leads to sterility problems. 9. IRRIGATION[25] Factors Affecting Suitability of Irrigation Method The selection of a suitable irrigation method for a particular farm location depends upon the following factors.  Soil: Textural, crusting, cracking and infiltration characteristics of surface soil; nature and depth of relatively impermeable layers in sub-soil, if any; water storage capacity of root zone; nature and extent of land slope; size of field; surface drainage; nature and extent of salts in surface and sub-soil are the salient soil factors influencing between of an irrigation method. Water: Nature of water supply (continuous or rational). source (pump or canal), size of water delivery, quality of irrigation water, and quantity of water supply (adequate or limited) area few factors that must be taken into consideration while deciding the method of irrigation. Crops: Nature of crops, area under different crops and their rooting behaviour, optimum depth and timing of irrigation, sensitivity of crops to excessive soil moisture, cultural operations required, etc. must be considered at the time of selection of irrigation method for a crop. Others: There are other factors influencing irrigation method like outlook, managerial efficiency and financial resources of the farmer; nature of the farm machinery used;
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availability and cost of labour; wear and tear maintenance facilities and costs of irrigation equipments; and availability of power supply. As far as possible, an irrigation method should not only provide a high level of water application efficiency, but also ensure its economic viability, sustained soil productivity and wide' adaptability to prevalent feature of the farm. Generally, irrigation methods followed in India lack in an economic use of irrigation water.

METHODS OF IRRIGATION  Surface Irrigation: In this method, water from an irrigation channel is allowed to reach a part or whole of the field and spread by the gravitational flow incidental to the slope of the land. Water may be distributed to the crops in border strips, check basins or furrows. The important requirements to obtain high efficiency in surface method are properly constructed water distribution systems to provide adequate flow of water to the fields and proper grading and leveling of land to achieve uniform distribution of water.The different types of surface irrigation are: Border strip method: The border method of irrigation makes use of parallel ridges to guide a sheet of flowing water as it moves down the slope. The land is divided into a number of long parallel strips called borders that are separated by low ridges. The border strip has little or no cross slope but has a uniform gentle slope in the direction of irrigation. Check basin irrigation: Check basin irrigation is the most common method of irrigation in India and in many other countries. This is the simplest in principle of all methods of irrigation. There are many systems in its use, but all involve dividing the field into smaller units so that each has a nearly level surface. Ridges-are-constructed around the areas forming basins within which the irrigation water can be controlled. The basins are filled to the desired depth and the water is retained until it infiltrates into the soil. Furrow irrigation: The furrow method of irrigation is used in irrigation of row crops with furrows developed between the crop rows in the planting and cultivating processes. The size and shape of the furrow depends on the crop grown, equipment used and spacing between crop rows. Water is applied by running small streams in furrows between the crop rows. Water infiltrates into the soil and spreads laterally to, irrigate the areas between the furrows. The length of time water takes to flow in the furrows depends on . The amount of water required to replenish root zone and the infiltration rate of the soil.

I.

II.

III.

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Sub-surface Irrigation:In this method of irrigation water is applied below the ground surface by maintaining an artificial water table at some depth depending upon the soil texture and the depth of the plant roots. Water reaches the plant roots through capillary action. Water may be introduced through open ditches or under-111ground pipelines such as tile drains or mole drains. The depth of open ditches varies from 30 to
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l00cm and they are spaced about 15 to 30 metres apart. This water application system consists of field supply channels, ditches or trenches and drainage ditches for the disposal of excess water. The irrigation ditches should be suitably spaced to cover the whole field adequately.

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Sprinkler irrigation: In the sprinkler method of irrigation, water is applied above the ground surface as spray. The spray is developed by tlte flow of water under pressure through small orifices or nozzles. The pressure is obtained by pumping with careful selection of nozzle sizes, operating pressures and sprinkler spacing. High efficiency in water application/distribution can be obtained with sprinkler system. Sprinkler systems are of generally two major types: Rotating head system:small nozzles are placed on riser pipes and these riser pipes are fixed at an even interval along the length of lateral pipes which are placed on the ground surface. However, they can be mounted on posts exceeding the crop height and made rotating through 90 degree. In rotating sprinkler, the most, important device to rotate the sprinkler head is a small hammer activated by the trust of water striking the vane connected to it.

I.

II.

Perforated pipe system: holes are perforated in lateral irrigation pipes which is especially designed to distribute water with a good deal of uniformity. This system is usually designed for low operating pressures (i.e. 0.5 to 2.5 kg/sq cm). Due to this low pressure, the system is attached to an overhead tank to achieve the requisite pressure head. The sprays are directed on both sides of the pipe which cover a strip of land from 6 to 15 metres wide.  Localized Irrigation Drip irrigation: As the name signifies, drip irrigation, also termed as trickle irrigation, involves the slow application of water to the root zone of a crop. The method was initiated in Israel and is now being tried in other countries. In this method, water can be used very economically, since loss due to deep percolation and surface evaporation are reduced to the minimum. This method, therefore, is highly suitable to arid regions and orchard crops. The successful raising of orchards even on saline soils has been made possible by the drip system of irrigation. The system can also be used for applying fertilizers in solutions.

I.

II.

Earthen pot irrigation:This method has been recently developed by the Haryana Agriculture University, Hissar. It is very cheap and convenient method and can be easily adopted. In this method, first a pit (60 cm deep and 90 cm wide) is dug out and the earthen pot is embedded up to the neck level and then it is filled with water. The water
18

is absorbed by the soil through capillary action. One pot is sufficient to moisten one square meter area. Care should be taken to cover the pot by lid and supply water from time to .time. The pots may be replaced by new ones after two or three seasons.

III.

Double walled pot "Jaltripti": It is a useful irrigation device for the desert, developed by the Central Arid Zone Research Institute (CAZRI), Regional Station, Bikaner. It reduces the frequency and total amount of water needed and ensures a regulated constant supply of moisture to tree plants for survival and better growth.This device consists of a double walled earthen pot called "Jaltripti" (water satisfaction). The diameter of the outer pot is kept , approximately 25 cm at the top and at base it is 18 cm. The diameter ; of inner pot is 15 cm on top and 12cm at base. The height is kept 30 cm. (Since it is prepared on potter's wheel, approximate dimensions have been given. Moreover, some variations in the measurement may occur). The dimensions of the inner pot have been kept slightly bigger than the size of the polythene bags (25 cm long measuring 10 : cm across) used for raising plants in nursery. Both the pots are joined together at the base and the basal portion of inner pots is kept almost open. The external side of the outer pot is made impervious with the f help of paint, cement or coaltar.

10. USES OF RICE Rice is a staple food and used by many ways as under: Staple food: Rice is used as a staple food by more than 60 percent of world population. Cooking of rice is a most popular way of eating. Starch: Rice starch is used in making ice cream, custard powder, puddings, gel, distillation of potable alcohol, etc. Rice bran: It is used in confectionery products like bread, snacks, cookies and biscuits. The defatted bran is also used as cattle feed, organic fertilizer (compost), and medicinal purpose and in wax making. Rice bran oil: Rice bran oil is used as edible oil, in soap and fatty acids manufacturing. It is also used in cosmetics, synthetic fibers, detergents and emulsifiers. It is nutritionally superior and provides better protection to heart. Flaked rice: It is made from parboiled rice and used in many preparations. Puffed rice: It is made from paddy and used as whole for eating.
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Parched rice: It is made from parboiled rice and is easily digestible. Rice husk: It is used as a fuel, in board and paper manufacturing, packing and building materials and as an insulator. It is also used for compost making and chemical derivatives. Rice broken: It is used for making food item like breakfast cereals, baby foods, rice flour, noodles, rice cakes, etc. and also used as a poultry feed. Rice straw: Mainly used as animal feed, fuel, mushroom bed, for mulching in horticultural crops and in preparation of paper and compost. Paddy as a seed: The paddy is used as seed. 11. INDIA’S CONTRIBUTION TO THE RICE INDUSTRY[10]
Rice is the second largest produced cereal in the world. At the beginning of the 1990s, annual production was around 350 million tons and by the end of the century it had reached 410 million tons. Production is geographically concentrated in Western and Eastern Asia. Asia is the biggest rice producer, accounting for 90% of the world's production and consumption of rice. China and India, which account for more than one-third of global population supply over half of the world's rice. Rice production in India accounts for 20 % of overall production. India ranks 2nd in the global rice production.India is the second largest rice producer in the world accounting to 103 million tons for 2011-12 and is estimated to consume around 95 million tons. Production of rice by country (million metric ton) China India Indonesia Bangladesh Vietnam Myanmar Thailand Philippines Brazil United States Japan Cambodia
SOURCE: indiamart.com

197.2 120.6 66.4 49.3 39.9 33.2 31.5 15.7 11.3 11.0 10.6 8.2

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12. RICE PRODUCTION IN INDIA[2][11][12] Rice is one of the chief grains of India. Moreover, this country has the biggest area under rice cultivation, as it is one of the principal food crops. It is in fact the dominant crop of the country. India is one of the leading producers of this crop. Rice is the basic food crop and being a tropical plant, it flourishes comfortably in hot and humid climate. Rice is mainly grown in rain fed areas that receive heavy annual rainfall. That is why it is fundamentally a kharif crop in India. It demands temperature of around 25 degree Celsius and above and rainfall of more than 100 cm. Rice is also grown through irrigation in those areas that receives comparatively less rainfall. Rice is the staple food of eastern and southern parts of India. In 2009-10, total rice production in India amounted to 89.13 million tonnes, which was much less than production of previous year, 99.18 million tonnes. In the year 2011-12 total production of rice in the country is estimated at 102.75 million tonnes which is an all-time record.It said India’s kharif rice production is projected to fall by around 6% as compared to 2011. India’s union agriculture ministry too in its first advanced estimate for 2012-2013 kharif crop season has pegged the rice output at 85.59 million tonnes, 6.5% less than last year. 13. EMPLOYMENT India is the 7th largest country in the world with a population of 1.2 billion. Around 65% of the total population in India eats rice and it accounts for 40% of the nation's food production. Ricebased production systems provide the main source of income and employment for more than 50 million households. 14. AREA FOR CULTIVATION AND IRRIGATION[18][19] India is the seventh-largest country in the world, with a total area of 3,287,240 km2. 60% of the total land area in India is used for agriculture which is around 1799000 km 2. Arable land available is 1586500 km2. The net irrigated area is 39 percent of net sown area and 30 percent of total cultivable area.The total of non-arable land and land not under permanent crops is 1,276,190 square kilometers. The total area under permanent crops is 108500 km2.In India, the total area under irrigated rice is about 22.00 million hectares, which accounts about 49.5% of the total area under rice crop in the Country. 15. RICE MILLS IN INDIA[27] Milling is a crucial step in post-production of rice. The basic objective of a rice milling system is to remove the husk and the bran layers, and produce an edible, white rice kernel that is sufficiently milled and free of impurities. Depending on the requirements of the customer, the rice should have a minimum of broken kernels. Most rice varieties are composed of roughly 20% rice hull or husk, 11% bran layers, and 69-% starchyendosperm, also referred to as the total milled rice. In an ideal milling process this will result in the following fractions: 20% husk, 8-12% bran depending on the milling degree and 68-72% milled rice or white rice depending on the variety. Total milled rice contains whole grains or head rice, and brokens. The
21

by-products in rice milling are rice hull, rice germ and bran layers, and fine brokens. A rice milling system can be a simple one or two step process, or a multi stage process. In a one-step milling process, husk and bran removal are done in one pass and milled or white rice is produced directly out of paddy. In a two-step process, removing husk and removing bran are done separately, and brown rice is produced as an intermediate product. In multistage milling, rice will undergo a number of different processing steps. Depending on whether the paddy is milled in the village for local consumption or for the marketing rice milling systems can be classified into the categories village rice mills and commercial mills. There are 2 types of rice mills: I. II. Village Millingsystems can be found in rural communities and are used for service milling paddy of farmers for home consumption. Commercial Milling systems mill the paddy in stages, and hence are called multi-stage or multi-pass rice mills. The objective of commercial rice milling is to reduce mechanical stresses and heat buildup in the grain, thereby minimizing grain breakage and producing uniformly polished grain. Compared to village-level systems, the commercial milling system is a more sophisticated system configured to maximize the process of producing well-milled, whole grains. The rice milling facility comes in various configurations, and the milling components vary in design and performance. “Configuration” refers to how the components are sequenced. The flow diagram below shows a modern commercial mill catering to the higher end market. It has three basic stages,  the husking stage,  the whitening-polishing stage, and  the grading, blending, and packaging stage. In modern rice mills, many adjustments (e.g. rubber roll clearance, separator bed inclination, feed rates) are automated for maximum efficiency and ease of operation. The whitener-polishers are provided with gauges that sense the current load on the motor drives which gives an indication of the operating pressure on the grain. This provides a more objective means of setting milling pressures on the grain. 16. DEMAND FOR RICE[15][16] India’s demand for rice is projected to be around 211 million tonnes.In 2020 from an estimated 132 million tonnes in 2000 and then combined with feed use it will be around 260 million tonnes. The demand for Indian rice is high in the international market.
The international trade in rice during the year 2011 was 33 Million MTs Valued at 15316.31 Million USD. The quantity of rice exported by India to top ten countries and foreign exchange earned thereby during last three years are as under:

22

Qty in MT, Value in US$ Million Country SAUDI ARABIA UNITED ARAB EMIRATES IRAN KUWAIT UNITED KINGDOM YEMEN REPUBLC UNITED STATES IRAQ JORDAN NETHERLAND OTHER COUNTRIES Total Source: DGCIS 2008-2009 Quantity Value 525125.23 675.27 477458.34 631.20 172760.47 111734.09 63856.89 31847.68 40044.09 6071.21 3934.39 11147.30 1044310.48 2488290.17 215.46 159.76 94.73 38.25 59.70 7.50 5.34 14.20 526.14 2427.55 2009-2010 Quantity Value 655281.70 706.03 627940.57 661.74 366718.50 140051.83 37927.10 64001.62 30879.37 10046.08 9345.20 4468.72 209652.6 2156313.29 435.30 217.75 42.41 63.78 36.26 8.58 10.69 4.99 186.84 2374.37 2010-2011 Quantity Value 574581.45 637.50 612461.43 598.65 420402.61 159660.17 71718.09 62567.52 42632.13 31239.59 23309.76 21581.91 262599.49 2282754.15 416.63 223.20 71.08 57.86 49.20 30.73 22.50 21.92 240.33 2369.60

17. EXPORT OF RICE[12][13][14] Rice is contributing significantly in the economy of the country, and from its export considerable amount of foreign exchange is realized. In-fact, Basmati Rice and Non-Basmati Rice, both are exported from India to various countries around the world. The variety Basmati is unique in its quality characteristics and it has good demand in the international markets, but presently India is facing stiff competition with other competing countries in the world. Rice export from India constitutes the major share of Basmati rice. Nearly two-third of Basmati rice produced in India is exported. Basmati rice is the leading aromatic fine quality rice of the world trade and it fetches good export price in the international markets. Gulf region remains the major markets for Indian basmati rice and inside Gulf, Saudi Arabia accounts for the major chunk of basmati imports from India. Pakistan is the sole competitor for India in the international market for basmati rice.Major destinations for India's non-basmati rice exports are Bangladesh, Australia, Bahrain, Ethiopia, Djibouti, France, Germany, U.K., Hong Kong, Korea, Sri-Lanka, Maldives, Mauritius, Malaysia, Nigeria, Ivory coast, Indonesia, Nepal, Oman, Qatar, Russia, South Africa, Saudi Arabia, Somalia, Singapore, U.A.E. Y.A.R., etc. Competing countries in the international markets for India for the exports of non-basmati rice are Thailand, Vietnam, Burma, China, U.S.A. and Pakistan. Major quantity of non-basmati rice is exported to Asia continent. 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. However, 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).In 2011-2012, India exported around 8.30 million tonnes of rice, of which 3.21 million tonnes was the aromatic basmati rice, while the rest was
23

non-basmati rice. India has emerged as the world’s biggest exporter of rice piping traditional leaderThailand by exporting almost nine million tonnes of rice in 2012. However, in 2013, the trend might be difficult to sustain as Thailand is again pushing to expand its exports by lowering rates in international markets. 18. FACTORS AFFECTING PRICE OF RICE[20] The factors affecting the price of rice are:  Weather: Role of weather in rice production is immense. Temperature, rainfall and soil moisture are the important parameters that determine the crop condition. Further, natural calamities can also affect crops. Markets keep watch of these developments.  Minimum Support Price: Changes in the minimum support prices (MSP) by the government also have immense impact on the price of rice.  Government policies: Exchange rates, Fiscal policies, Export incentives and export promotion also influence price.  Substitute Product: Availability of substitute products at cheaper rate may lead to weakness in demand. This situation happens especially when the main products price tends to become higher.  Consumption: Rice consumption depends on two factors - population and income. Lets take for example Asia. Rice is the staple food of Asia. Low-income groups consume more rice according to the per capita income increase. But as the income increases, there arrives a point when the consumption starts to dip. Income growth and reduction in population result in a low consumption of rice.  Seasonal cycles: Seasonal cycles are present in rice cultivation. Price tends to be lower as harvesting progresses and produce starts coming into the market. At the time of sowing and before harvesting price tends to rise in view of tight supply situation.  Demand: Import demands as well as domestic demand. Breakthrough in the technology may increase the productivity and would lead to more supply. This may bring some softness in the price. 19. FACTORS AFFECTING EXPORT OF RICE[22]     Production of quality seeds and ensuring its availability to farmers at subsidized rates. Low cost production technology may be developed to reduce the cost of production and making Indian rice more competitive in the international markets. Survey may be conducted to identify contiguous zones for cultivation of export quality rice. Quality of rice may be maintained keeping in view the requirements of the international markets.

24



Breeding programme may be initiated to develop high yielding export quality rice both for basmati and non-basmati rice to enable the exporters to compete in the world's markets. Production, procurement and processing of basmati rice may be organized in a systematic manner for maintaining its quality for export purposes. Conventional rice mills may be modernized to ensure high milling recovery of head rice and effective availability of by- products for better and profitable utilization both for industrial and feed purposes. Intelligence wing may be set up to keep watch over the requirement of various rice importing countries so that Research & Development may be strengthened accordingly to produce quality rice for export purposes. Export friendly trade policies may be adopted with improvement of infrastructure facilities for promoting export. Sufficient export facilities may be made available to the exporters at Sea Port.

 



 

20. PROBLEMS AFFECTING EXPORT OF RICE[23]  Indian rice is costlier in the international market as compared to other competing countries in the world because of imposing of various taxes on rice exports, such as Purchase Tax (on indirect export), Market Fees, Rural Development Fund, Administrative Charges etc. as per the state Govt. policy. In Pakistan rice meant for exports specially the branded ones, duties are extremely low or duty free. Lack of proper infrastructural facilities. The Minimum Support Price (MSP) for paddy is enhanced every year by the govt. of India. The production cost goes up due to increase in the cost of inputs used for paddy cultivation. That is why when paddy is converted to rice, it becomes costlier making it internationally uncompetitive. Rice production meant for export purpose is having subsidy in other countries, which reduces the cost of production and thereby reducing the cost of rice. Therefore, the export price of rice of such countries is more competitive in the international markets compared to Indian rice. Indian rice prices are inelastic due to relatively high cost of production whereas the major rice producing nations have decreased the price to capture the international markets. Rice mills have not been fully modernized to ensure high milling recovery and reduce the percentage of broken rice.
25

  







 

 



Lack of proper arrangements for production of sufficient quantity of quality seeds needed for cultivation of rice for export purposes. The export is also suffering much due to the competition from other exporting countries like Thailand, Vietnam and Pakistan because the cost of production in these competing countries is low as compared to the cost of production in India. Indian Basmati rice is facing aroma problem, because intensity of aroma in traditional basmati varieties is not so high as it used to be. Post-harvest handling of produce is another important aspect. Generally, farmers are harvesting the crop at different moisture levels and keeping the produce at higher moisture level for a longer period will impair the intensity of aroma. In absence of genetically pure seed of basmati varieties, a variation in plant height, grain size and maturity of the crop is found. This is one of the major reasons for poor quality of basmati rice.

21. SUBSIDIES[28][29] An agricultural subsidy is a governmental subsidy paid to farmers and agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities. • • • Considered to be the most effective mechanism for accelerating the growth of agricultural sector A tool for the developed countries to maintain their supremacy There are growing disparities between the agricultural and no-agricultural sectors and deterioration in the quality of public services in rural India. Prominent Agriculture Subsidies in India are • • • • • • • • • Food Fertilizer (1996-67 basically for import substitution (NPK) and push fertilizer consumption) Irrigation (Hugh investments, Hydel power generation and Flood control) Power subsidy Crop insurance (Mainly when you take a crop loan) Subsidized Priority lending (NABARD, PSU banks, RRBs) Minimum Support Pricing (1964 LK Jha Committee) Subsidized Inputs and Welfare schemes under rural development

26

Benefits     Inducing higher consumption/ production Offsetting market imperfections including internalisation of externalities Achievement of social policy objectives including redistribution of income, population control, etc. It can help in controlling the prices to maintain stability.

22. MINIMUM SUPPORT PRICE[21][7] The minimum support prices are announced by the Govt. of India with a view to ensuring remunerative prices to the farmers for their produce on the basis of the Commission for Agricultural Costs and Prices (CACP) recommendations. The minimum support prices are perceived by the farmers as a guarantee price for their produce from the Government. These prices are announced by the Government at the commencement of the season to enable them to pursue their efforts with the assurance that the prices would not be allowed to fall below the level fixed by the Govt. Such minimum support prices are fixed at incentive level, so as to induce the farmers to make capital investment for the improvement of their farm and to motivate them to adopt improved crop production technologies to step up their production and thereby their net income. Keeping in view the interests of the farmers as also the need for self reliance, the government is announcing Minimum Support Prices (MSP) for major crops from year to year. Farmers are free to sell in the open market or to the Government at the MSP depending on what is more advantageous to them. The price support policy of the Govt. is directed at providing to insurance to farmers against any sharp fall in farm prices. The minimum price is fixed beyond which the market price cannot fall. There were substantial increases in the MSPs of rice and wheat after the mid-nineties. MSP of paddy was increased by Rs 35 per quintal in 1997-98. Minimum Support Price of Rice in Rs/ qtl. Marketing Season 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Common 570 580# 645** 850^ 950+ 1000 1080
SOURCE: indiamart.com

Grade ’A’ 600 610# 675** 880^ 980+ 1030 1110

27

Note: # - An incentive bonus of Rs.40 per qtl over the MSP allowed for paddy procured in KMS 200607. ** -An incentive bonus of Rs.100 per quintal over the MSP allowed for paddy/rice procured in KMS 2007-08. ^ - An incentive bonus of Rs.50 per quintal over the MSP allowed for paddy/rice procured in KMS 2008-09. + - An incentive bonus of Rs.50 per quintal over and above the MSP of both varieties of paddy was allowed in KMS 2009-10. 23. GOVERNMENT POLICIES[30]      USDA/ERS has been involved in research on Indian agriculture since 2001, with studies on a range of economic issues affecting the prospects for Indian agriculture either completed or underway. The MSP mechanism is one of the few policy levers available to Indian policymakers in the food grain sector and there is a tendency to try to use it to achieve multiple policy goals, including price stabilization and income support. Complete decentralization of government of rice procurement and distribution. Lowering domestic prices are likely to boost the competitiveness of Indian exports. Various policies and programs have come into force, farmer awareness programs coupled with subsidy incentive have been launched in order to meet the growing challenges. The National Policy on Agriculture seeks to actualise the vast untapped growth potential of Indian agriculture, strengthen rural infrastructure to support faster agricultural development, promote value addition, accelerate the growth of agro business, create employment in rural areas, secure a fair standard of living for the farmers and agricultural workers and their families, discourage migration to urban areas and face the challenges arising out of economic liberalization and globalisation. Over the next two decades, it aims to attain:



The salient features of the new agricultural policy are: 1. 2. 3. 4. 5. Over 4 per cent annual growth rate aimed over next two decades.. Greater private sector participation through contract farming. Price protection for farmers. National agricultural insurance scheme to be launched. Dismantling of restrictions on movement of agricultural commodities throughout the country. 6. Rational utilisation of country's water resources for optimum use of irrigation potential. 7. High priority to development of animal husbandry, poultry, dairy and aquaculture.
28

8. Capital inflow and assured markets for crop production. 9. Exemption from payment of capital gains tax on compulsory acquisition of agricultural land. 10. Minimise fluctuations in commodity prices. 11. Continuous monitoring of international prices. 12. Plant varieties to be protected through a legislation. 13. Adequate and timely supply of quality inputs to farmers. 14. High priority to rural electrification. 15. Setting up of agro-processing units and creation of off-farm employment in rural areas.

24. GLOBAL SCENARIO[17] International rice market is usually described in the literature as ‘thin’, ‘volatile’, ‘segmented’ and ‘highly distorted’. It is thin as only a small proportion of global production is traded. For the past forty years the annual average export to production ratio is worked to be just above 3 percent. A momentum in rice trade is noticed since the early 1990s, which is thought to be attributable to the liberalisation measures undertaken by countries under the auspices of the WTO Agreement on Agriculture along with various regional agreements and national policy reforms. Nevertheless, the international rice market remains thin with exports currently accounting for just about 5 percent of global production. Production and exports of rice are also heavily concentrated in a few countries. More than half of the world rice production is due to China and India, while other Asian countries viz., Indonesia, Bangladesh, Vietnam, Thailand, Myanmar, the Philippines, Japan, South Korea, and Pakistan are also major producers. Turning to the export trade, Thailand has the biggest share of about 26 percent followed by India, the USA, Vietnam, Pakistan and China. Amongst the importers, Saudi Arabia, Nigeria, Iran, the UK, Japan, Indonesia, France, the USA, Brazil, the Philippines, etc. are prominent. Since the marketed volume is very small in comparison with total production, the rice market is characterised by big swings in traded volumes and prices. Because of the thinness of themarket, even a relatively small change in a major producing country can generate a significant supply shock, which is most often reflected in the price of the commodity. In addition, like many other primary commodities, the demand for which is price and incomeinelastic in nature, the rice price has been subject to a long-term declining trend relative to manufactured goods. The rice market is also segmented by types. Market segmentation occurs due to variety, quality and degree of processing. Indica is the mostly consumed variety accounting for 75% of rice trade, while Japonica and Aromatic has a share of 12 percent each. In terms of processing, 77 percent of trade volume is milled rice, followed by parboiled rice (15%), husked (4%) and paddy (4%). Finally, high and medium quality rice accounts for 75% of the total trade. An important feature of rice consumption is that the degree of substitutability between types and qualities is very limited. The rice market is possibly the most distorted amongst all cereals as both developed and developing countries use a wide variety trade policy instruments to influence its domestic production and control imports from abroad. The widespread use of tariff rate quotas, high import tariffs, operation of state trading
29

system, export subsidies, input subsidies, and producers’ price support in major rice-producing countries have caused serious distortions. Imports of rice used to be banned in countries like Japan andKorea, which had partially been relaxed following the WTO Agreement on Agriculture that allowed the provision for tariff rate quotas. However, excessively high tariffs over tariff rate quotas make imports prohibitive in practice. Both Japan and Korea also use monopolised state trading system to control rice imports.

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3. RESEARCH METHODOLOGY

INTRODUCTION TO RESEARCH METHODOLOGY

The design of any study begins with the selection of a topic and a research methodology. These initial decisions reflect assumptions about the social world, how science should be conducted, and what constitutes legitimate problems, solutions and criteria of “proof”. The word “research” is used to describe a number of similar and often overlapping activities involving a search for information. It is basically gathering and analyzing a body of information or data and extracting new meaning from it or developing unique solutions to problems or cases. This is real research and requires an open-ended question for which there is no ready answer. The word “methodology” can properly refer to the theoretical analysis of methods appropriate to a field of study or to the body of methods and principles or rules from which specific methods or procedures may be derived to understand different situations within scope of a particular discipline. Therefore, research methodology refers to the way in which the data are collected for the research project.

DATA
Representation of facts, concepts, or instructions in a formalized manner suitable for communication, interpretation, or processing by humans or by automatic means.Any representations such as characters or analog quantities to which meaning is or might be assigned.

Research data includes qualitative and quantitative data. In this research paper, quantitative data and secondary data have been used as no primary research was involved.



QUANTITATIVE DATA- Information that can be counted or expressed numerically. This type of data is often collected in experiments, manipulated and statistically analyzed. Quantitative data can be represented visually in graphs and charts. QUALITATIVEDATA - Qualitative data is extremely varied in nature. It includes virtually any information that can be captured that is not numerical in nature. 'Soft' data that approximates but does not measure the attributes, characteristics, properties, etc., of a thing or phenomenon. 31



DATA SOURCES

 

PRIMARY DATA - Primary data is data gathered for the first time by the researcher. It is collected to address the specific issue or problem under study. These data can be gathered internally or externally though surveys, observations, experiments, and simulation. SECONDARY DATA- Secondary data is data collected by someone other than the user. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research.

CORRELATION
Correlation (often measured as a correlation coefficient) indicates the strength and direction of a relationship between two random variables. In general statistical usage, correlation refers to the departure of two random variables from independence.

REGRESSION ANALYSIS
Regression analysis includes any techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables. More specifically, regression analysis helps us understand how the typical value of the dependent variable changes when any one of the independent variables is varied, while the other independent variables are held fixed. Most commonly, regression analysis estimates the conditional expectation of the dependent variable given the independent variables — that is, the average value of the dependent variable when the independent variables are held fixed. Regression analysis is widely used for prediction (including forecasting of time-series data).

HYPOTHESIS
A hypothesis is a proposed explanation for an observable phenomenon. The term derives meaning "to put under" or "to suppose. A hypothesis is a tentative explanation for some kind of observed phenomenon, and is an important part of the scientific method. The scientific method is a set of steps that is commonly employed by those in scientific fields to give scientific explanations for various phenomena.

NULL HYPOTHESIS
The null hypothesis typically proposes a general or default position, such as that there is no relationship between two measured phenomena,] or that a potential treatment has no effect. 32

ALTERNATIVE HYPOTHESIS
The alternative need not be the logical negation of the null hypothesis and is the predicted hypothesis you would get from the experiment. The use of alternative hypotheses was not part of Fisher's formulation, but became standard.

CHARTS
Charts and diagrams are effective devices for vivid presentation of statistical data. Main objective of diagrammatic representation is to emphasize the relative position of different subdivisions and not simply to record details.

Column Chart
The column chart consists of a group of equi-spaced rectangular bars, one for each category of given statistical data. The columns, starting from a common base line, must be of equal width and the length represent the values of statistical data.

Line Chart
Line chart shows by means of a curve or a straight line the relationship between two variables. Two straight lines one horizontal and vertical know as x and y axis. The given data is represented as points on the graph paper.

33

4. DATA ANALYSIS
 Table 1(Refer to Annexure): The table shows the total area under rice in India for 20002011. It can be seen from the graph that there is not much substantial increase in the cropping area since 2009. The year 2009 recorded the highest area under rice. Table 2(Refer to Annexure): The table shows the production of rice for 2000-11. It can be seen that there is an increase in production 2004 and it decreases in 2009. Table 3(Refer to Annexure): The table shows area under rice cultivation in India. It can be seen that the cultivated areas increase in 2005 and there is a gradual decrease from 2009. Table 4(Refer to Annexure): The table shows the area under irrigation for rice in India for 2000-10. The irrigated area increases from 2004 and there are increases in the coming years. Table 5(Refer to Annexure): The table shows the export quantity in ‘000 tonnes and the exports value in Rs crore. It can be seen that India exports rice in huge quantities. We see that there is huge increase in exports in 2005 and the exports value also increase. But in 2009 there is substantial decrease in exports of rice but a little change in the exports value. Table 6(Refer to Annexure): The table shows the export of basmati and non-basmati rice in India of which India is a major exporter. Chart 6.1 shows the export of basmati rice. It can be seen that the exports of basmati rice has increases in the recent years leading to more export. Chart 6.2 shows the exprt of non-basmati rice. It can be seen that in the initial starting year in 2000 there were large exprts of non-basmati rice and it reduced as the exports of basmati rice increased. Table 7(Refer to Annexure): The table shows the import of rice in India from Dec-00 to Dec-11. It can be seen that in the initial stages of 2000 India had to import rice because of shortage of rice but after the last 9 years India stopped depending on the imports because it had enough production to feed the consumers and it also is a major exporter. Table 8(Refer to Annexure): The table shows the sales value of rice in India. Rice is one the major staple crops in India and has a major acceptance among the Indian population. Due to its popularity it can be seen that the sales value of rice increases from 2000 till 2010 until in 2011 it sales partially decreased. Table 9(Refer to Annexure): The table shows the demand for rice in India from 200712.The demand for rice is high in the country which can be seen from the chart itself. Table 10(Refer to Annexure): The table shows the procurement cost and the distribution costs of rice in India. Procurement includes all the start to finish process. It can be seen that there is an huge decrease in procurement cost from 2000-2006 and there is a huge increase in the procurement cost after 2006 because of different factors.
34

 











 









Distribution is the distribution of rice to different sources for consumption. There is not much change in distribution except in 2009-10 when the distribution is less. Table 11(Refer to Annexure): The table shows the Per Capita Net Availability of Rice Per Day in India for 2000-2010. This means the amount of rice available daily for each person in India. In the year 2000 each person consumed 200grams per day and it started reducing since then. In the year 2005 it can be seen that per capita consumption reduces and is at a low. Table 12(Refer to Annexure): The table shows the Per Capita Net Availability of Rice Per Annum in India for 2000-2010. This means the amount of rice available yearly for each person in India. In the year 2000 each person consumed 74.3kg per year and it started reducing since then. In the year 2005 it can be seen that per capita consumption reduces and is at a low. Table 13(Refer to Annexure): The table shows the economic cost of rice in India. Economic cost the sacrifice involved in performing an activity, or following a decision or course of action. The cost of rice increases from 2000 and every year increases. Table 14(Refer to Annexure): The table shows the minimum support price of rice given to farmers in India. The table shows the MSP of paddy of two varities - common and grade-A. The MSP given to farmers has increased every year.

Regression Output 1(Refer to Annexure): Regression on Export of Rice The correlation between exports of rice and sales value is 0.044424755. This means that there is a positive correlation between the two variables. Taking Export price as the independent variable and sales value as the dependent variable the following regression equation can be formed: Yi= α+βxi Y = 43.206+1.8603X The two underlying hypotheses are stated as follows:   H0 is β=0 (no influence of exports of rice on sales value) Ha is β≠ 0 (influence of exports of rice in India on sales value) The R square value is 0.00197, which means that .19% of the variation in the dependant variable due to the independent variable is being explained. The adjusted R square (-0.10891)is low and there is much 35

discrepancy of it from the R square value. This implies that the sample size is adequate and the regression is acceptable. If the computed p value is less than the significance value (0.05) then the alternative hypothesis is accepted, else the null hypothesis is accepted. The computed p value is 0.8968. Thus the null hypothesis is accepted at 0.8968level of significance, which is considerably more than the 0.05. Therefore, the data are not suggestive of a significant impact of exports of rice on sales value.

Regression Output 2(Refer to Annexure): Regression on Import of Rice The correlation between exports of rice and sales value is -0.37763186. This means that there is a negative correlation between the two variables. Taking Import price as the independent variable and sales value as the dependent variable the following regression equation can be formed: Yi= α+βxi Y = 7158.473 -168.1601X The two underlying hypotheses are stated as follows:   H0 is β=0 (no influence of imports of rice on sales value) Ha is β≠ 0 (influence of imports of rice in India on sales value) The R square value is 0.142605, which means that 14.36% of the variation in the dependant variable due to the independent variable is being explained. The adjusted R square (0.047339802)is high and there is low discrepancy of it from the R square value. This implies that the sample size is adequate and the regression is acceptable. If the computed p value is less than the significance value (0.05) then the alternative hypothesis is accepted, else the null hypothesis is accepted. The computed p value is 0.2522. Thus the null hypothesis is accepted at 0.2522level of significance, which is considerably more than the 0.05. Therefore, the data are not suggestive of a significant impact of imports of rice on sales value. Regression Output 3(Refer to Annexure): Regression of Cultivation The correlation between cultivation and production is 0.665008. This means that there is a positive correlation between the two variables. Taking Cultivation as the independent variable and Productionas the dependent variable the following regression equation can be formed: 36

Yi= α+βxi Y = 32.370356 +0.122124X The two underlying hypotheses are stated as follows:   H0 is β=0 (no influence of cultivation onproduction) Ha is β≠ 0 (influence of cultivation onproduction) The R square value is 0.44223666, which means that 44.22% of the variation in the dependant variable due to the independent variable is being explained. The adjusted R square (0.3802629)ishigh and there is low discrepancy of it from the R square value. This implies that the sample size is adequate and the regression is acceptable. If the computed p value is less than the significance value (0.05) then the alternative hypothesis is accepted, else the null hypothesis is accepted. The computed p value is 0.02556. Thus the null hypothesis is accepted at 0.02556level of significance,which is considerably less than the 0.05. Therefore, the data are suggestive of a significant impact of cultivation on production.

Regression Output 4(Refer to Annexure): Regression of Rainfall The correlation between rainfall and production is -0.801539. This means that there is a negative correlation between the two variables. Taking Rainfall as the independent variable and Productionas the dependent variable the following regression equation can be formed: Yi= α+βxi Y = 2328.403 -1.871002X The two underlying hypotheses are stated as follows:   H0 is β=0 (no influence of rainfall onproduction) Ha is β≠ 0 (influence of rainfall onproduction) The R square value is 0.64824989, which means that 64.82% of the variation in the dependant variable due to the independent variable is being explained. The adjusted R square (0.609166548)is high and there is low discrepancy of it from the R square value. This implies that the sample size is adequate and the regression is acceptable.

37

If the computed p value is less than the significance value (0.05) then the alternative hypothesis is accepted, else the null hypothesis is accepted. The computed p value is 0.002788616. Thus the null hypothesis is accepted at 0.002788616 level of significance,which is considerably less than the 0.05. Therefore, the data are suggestive of a significant impact of rainfall on production.

Regression Output 5(Refer to Annexure): Regression of Irrigation The correlation between rainfall and irrigation is -0.7328308. This means that there is a negative correlation between the two variables. Taking Rainfall as the independent variable and Irrigationas the dependent variable the following regression equation can be formed: Yi= α+βxi Y = 1232.14201 -0.00144937X The two underlying hypotheses are stated as follows:   H0 is β=0 (no influence of rainfall onirrigation) Ha is β≠ 0 (influence of rainfall onirrigation) The R square value is 0.537041041, which means that 53.70% of the variation in the dependant variable due to the independent variable is being explained. The adjusted R square (0.479171171)is high and there is low discrepancy of it from the R square value. This implies that the sample size is adequate and the regression is acceptable. If the computed p value is less than the significance value (0.05) then the alternative hypothesis is accepted, else the null hypothesis is accepted. The computed p value is 0.015909406. Thus the null hypothesis is accepted at 0.015909406 level of significance,which is considerably more than the 0.05. Therefore, the data arenot suggestive of a significant impact of rainfall on irrigation.

38

5. RESULTS AND FINDINGS
     The irrigated area of cultivation has increased over the years and a rise has been seen in the production of rice. The cost of procurement has also increased over the years from 2006. A high part of the population is dependent on rice and the demand has increased over the years. The quality of rice has improved and the exports of rice has also risen and this has made India the second largest exporter of rice. There is a negavtive correlation between rainfall and production but a positive correlation between cultivation and production which shows that the production is affected much by the cultivation and is a good sign. In the year 2005 per capita consumption had decreased and it is seen that from year 2000 the price of rice has increased each year. This inturn has affected the consumption and people have shifted to cheaper quality rice as it is not possible for every person to afford it.



39

6. CONCLUSION
India is a major producer and exporter of rice, a staple commodity vital to the food security and welfare of over half the world’s population. Since she consumes 95% of the rice she produces, rice prices are an integral part of national welfare to both consumers and producers. However, India’s greater use of export restrictions vs. export tariffs and its monopoly power in the production of rice could have limited the full effect of the price decrease. Plus the trade restrictions have lowered the overall economic welfare even though consumers benefited by forcing the produces sell product strictly in the domestic market. In the long run, export restrictions could have significant consequences for India and rice producers. A limited impact on domestic prices and a negative earnings effect for farmers could encourage smuggling and hoarding, exacerbating the issue. Importing countries could move to self sufficiency or alternatives to rice, decreasing trade opportunities, growth, and efficiency. India’s production-oriented aid measures could become fiscally impossible to sustain. Public sector debt is very high, which undermines capital investment through heavy debt service burdens. Meeting future rice demand will be a challenge, given the increasing competition for land and water and environmental degradation. Over the years the policies have proved to be beneficial for India.

LIMITATIONS
    The irrigational facilities in India are not upto the mark and the subsidies should be provided more by the government. The farmers depend a lot on the rainfall which is very uneven and uncertain. The data for the year 2011 was partly available on indiastat.com The farmers in the rural areas still use traditional methods of agriculture and are not up to date with the modern technological advancements. Also the technology is very expensive.

40

7. ANNEXURE Table & Chart 1: Area under Rice Crop
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Area(Million Hectare) 44.71 44.90 41.18 42.59 41.91 43.66 43.81 43.91 45.54 41.92 42.56
Source: Department of Agriculture and Cooperation

Area
46.00 45.00 44.00 43.00 42.00 41.00 40.00 39.00 Area(Million Hectare)

On Authors Calculation

41

Table & Chart 2: Production of Rice
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Production(in million tonnes) 84.98 93.34 71.82 88.53 83.13 91.79 93.36 96.69 99.18 89.09 95.33
SOURCE: Department of Agriculture and Cooperation

Production(Million Tonnes)
120.00 100.00 80.00 60.00 Production(Million Tonnes) 40.00 20.00 0.00

On Authors Calculation

42

Table & Chart 3: Area under Cultivation of Rice in India
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Units(million hectare) 44.71 44.9 41.18 42.59 41.91 43.66 43.81 43.91 45.54 41.87 42.56 44.07
Source: indiastat.com

Area under Rice Cultivation
46 45 44 43 42 41 40 39 Units(million hectatre)

On Authors Calculation

43

Table & Chart 4: Area under Irrigation of Rice in India
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10(p)
P: provisional

Units(Thousand Hectare) 24337 24419 21186 22395 23585 25066 25311 25216 26542 24545 source: indiastat.com

Area Under Irrigation
30000 25000 20000 15000 10000 5000 0 Units(Thousand Hectare)

On Authors Calculation

44

Table & Chart 5: EXPORT OF RICE
YEAR Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 14000 12000 10000 8000 6000 4000 2000 0 Exports Quantity(‘000 tonnes) 1896.2 1531.3 2208.6 4967.9 3412.1 4778.1 4088.2 4747.9 6469.5 2488.3 2156.4 2282.5
SOURCE: ECONOMIC INTELLIGENCE SURVEY

Exports Value (Rs.crore) 3125.9 2932.2 3174.1 5831.2 4168 6768.9 6221.3 7035.9 11754.6 11164.4 11254.9 10801.8

Rice: Exports Quantity('000 tonnes) Rice: Exports Value (Rs.crore)

On Authors Calculation

45

Table 6: EXPORT OF BASMATI AND NON-BASMATI RICE
Basmati Rice Year 1999-2000 2000-2001 (P) 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Source: indiastat.com

Non-Basmati Rice Value 1780.34 2141.94 2923.9 3043.1 2792.81 4341 9477 10890 Qty. 12577.93 6831.94 3615.11 2921.602 3702.192 5286.84 931.89 139.54 Value 1345.58 784.16 394.502 317.817 424.308 741.1 168.7 36.5

Qty. 638.382 848.919 1162.989 1166.564 1045.715 1182.15 1556.41 2016.87

Chart 6.1

8. 12000 9. 10000 10. 8000 11. 6000

12.4000 2000 13. 0 14.

Basmati Rice Qty. Basmati Rice Value

Chart 6.2 14000 12000 10000 8000 6000 4000 2000 0

Non Basmati Rice Qty. Non Basmati Rice Value

46

Table & Chart 7: IMPORTS OF RICE
YEAR Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 40 35 30 25 20 15 10 5 0 Rice: Imports Quantity Rice: Imports Value Imports Quantity(‘000 tonnes) 35 13.2 0.1 0.9 0.1 0 0.3 0.2 0.2 0.1 0.1 0.2
SOURCE: ECONOMIC INTELLIGENCE SURVEY

Imports Value(Rs. Crore) 30 17.8 0.1 1.1 0.3 0 0.3 0.4 0.4 0.5 0.4 1.1

On Authors Calculation

47

Table& Chart 8: SALES VALUE

YEAR Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11

Sales Value(Rscrore) 2853.9 2829.8 3417.7 3808.1 3182.3 3866.6 5402.8 6735.8 9803.6 12517.8 15698.2 14984
SOURCE: ECONOMIC INTELLIGENCE SURVEY

Sales Value
18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Sales Value

On Authors Calculation

48

Table& Chart 9: DEMAND FOR RICE IN INDIA
Year 2007-08 2008-09 2009-10 2010-11 2011-12 Demand 90.91 92.87 94.83 96.81 98.79
Source: indiastat.com

Demand
100 95 90 85 2007-08 2008-09 2009-10 2010-11 2011-12
On Authors Calculation

Demand

49

Table & Chart 10: PROCUREMENT AND DISTRIBUTION COSTS
Year 2000-01 (P) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 (P) 2009-10 (P) 2010-11 (P) 2011-12 (RE) 2012-13 (BE) Procurement Incidental(Rs/quintal) 83.63 66.81 61.67 30.68 58.48 39.12 193.66 214.91 226.87 288.6 313.09 366.85 383.26 Distribution Cost(Rs/quintal) 166.43 119.62 157.72 214.52 256.51 272.37 289.58 297.82 280.76 184.92 223.49 291.32 397.12

P: Provisional RE: Revised Estimate BE: Budget Estimate Source: indiastat.com

450 400 350 300 250 200 150 100 50 0 Procurement Incidental Distribution Cost

On Authors Calculation

50

Table & Chart 11: Per Capita Net Availability of Rice (Per Day) in India
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Units(Gram/Capita/Day) 203.7 190.5 228.7 181.4 195.4 177.3 198 194 175.4 188.4 184.8
SOURCE: indiastat.com

Per Capita Net Availibility(Day)
250 200

150 Units(Gram/Capita/Day) 100

50

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

On Authors Calculation

51

Table & Chart 12: Per Capita Net Availability of Rice (Per Annum) in India
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010(P)
P: Provisional

Units(Kg/Year) 74.3 69.5 83.5 66.2 71.3 64.7 72.3 70.8 64 68.8 67.4 source: indiastat.com

Per Capita Net Availability(Annum)
90 80 70 60 50 40 30 20 10 0 Units(Kg/Year)

On Authors Calculation

52

Table & Chart 13: Economic Cost of Rice ($) in India
Year 2000-2001 (P) 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 (P) 2009-2010 (P) 2010-2011 (P) 2011-2012 (RE) 2012-2013 (BE) Economic Cost(Rs/Quintal) 1180.47 1097.96 1165.03 1236.09 1303.59 1339.69 1391.18 1549.86 1740.73 1820.07 1983.11 2184.2 2418.68

P: Provisional RE: Revised Estimate BE: Budget Estimate Source: indiastat.com ($) : Weighted average of common & grade 'A' Rice taken together. 15. 16. 17.

Economic Cost

18. 3000 19. 2500 20. 21. 2000 22. 1500 23. 24. 1000 25. 500 26. 0 27.

Economic Cost

On Authors Calculation

53

Table & Chart 14: MINIMUM SUPPORT PRICE FOR RICE IN INDIA
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Price(Rs/Quintal) 510 530 530 550 560 570 580 645 850 950 1000 1080 1250

Source: indiastat.com Note: MSP announced for two varieties of paddy- common and grade-A. Paddy common for 2008-09 includes a bonus of Rs. 50 per quintal over the MSP. Paddy common for 2006-07 include an additional incentive bonus of Rs. 40 per quintal on procurement between Oct. 1, 2006 to March 21, 2007.

Minimum Support Price
1400 1200 1000 800 600 400 200 0 Price

On Authors Calculation

54

Regression Table 1: Exports value and Sales Value
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

2010-11

Exports Value (Rs.crore) 3125.9 2932.2 3174.1 5831.2 4168 6768.9 6221.3 7035.9 11754.6 11164.4 11254.9

Sales Value(Rs. Crore) 2853.9 2829.8 3417.7 3808.1 3182.3 3866.6 5402.8 6735.8 9803.6 12517.8 15698.2

SUMMARY OUTPUT Regression Statistics Multiple R 0.044424755 R Square 0.001973559 Adjusted R Square -0.108918268 Standard Error 1.48327473 Observations 11 ANOVA df Regression Residual Total 1 9 10 SS MS F Significance F 0.039155587 0.039155587 0.017797153 0.89680766 19.80093532 2.200103925 19.84009091

Intercept X Variable 1

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% 43.20671909 1.032771771 41.83568945 1.27009E-11 40.87042703 45.54301115 40.87042703 45.54301115 1.86036E-05 0.000139451 0.133405972 0.89680766 -0.000296857 0.000334064 -0.000296857 0.000334064

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Regression Table 2: Imports and Sales Value
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

2010-11

Imports Value(Rs. Crore) 30 17.8 0.1 1.1 0.3 0 0.3 0.4 0.4 0.5 0.4

Sales Value(Rs. Crore) 2853.9 2829.8 3417.7 3808.1 3182.3 3866.6 5402.8 6735.8 9803.6 12517.8 15698.2

SUMMARY OUTPUT Regression Statistics Multiple R 0.37763186 R Square 0.142605822 Adjusted R Square 0.047339802 Standard Error 4302.050946 Observations 11 ANOVA df Regression Residual Total 1 9 10 SS MS F Significance F 27704501 27704501 1.496922216 0.252211197 166568781.1 18507642.35 194273282.1

Intercept X Variable 1

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% 7158.473945 1446.850036 4.947626753 0.000793883 3885.471773 10431.47612 3885.471773 10431.47612 -168.1601052 137.4432302 -1.223487726 0.252211197 -479.0782927 142.7580824 -479.0782927 142.7580824

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Regression Table 3: Production and Cultivation
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Production(in million tonnes)
84.98 93.34 71.82 88.53 83.13 91.79 93.36 96.69 99.18 89.09 95.33

Cultivation(million hectare)
44.71 44.9 41.18 42.59 41.91 43.66 43.81 43.91 45.54 41.87 42.56

SUMMARY OUTPUT Regression Statistics Multiple R 0.665008767 R Square 0.44223666 Adjusted R Square 0.380262955 Standard Error 1.108857038 Observations 11 ANOVA df Regression Residual Total 1 9 10 SS MS F Significance F 8.774015532 8.774015532 7.135875828 0.025567683 11.06607538 1.229563931 19.84009091

Intercept X Variable 1

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% 32.37035632 4.11666775 7.863242379 2.53973E-05 23.05780688 41.68290576 23.05780688 41.68290576 0.122124388 0.045717109 2.671306015 0.025567683 0.018705103 0.225543673 0.018705103 0.225543673

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Regression Table 4: Rainfall and Production
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Rainfall(in mm)
1195.5 1196 1205.4 1196.5 1197.3 1196.8 1195.5 1194.8 1196.4 1195.6 1191.7

Production(million tonnes)
84.98 93.34 71.82 88.53 83.13 91.79 93.36 96.69 99.18 89.09 95.33

SUMMARY OUTPUT Regression Statistics Multiple R 0.805139673 R Square 0.648249893 Adjusted R Square 0.609166548 Standard Error 4.795044751 Observations 11 ANOVA df Regression Residual Total 1 9 10 SS MS F Significance F 381.3608035 381.3608035 16.58634615 0.002788616 206.9320874 22.99245416 588.2928909

Intercept X Variable 1

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% 2328.403447 549.684112 4.235893663 0.002187502 1084.931595 3571.875298 1084.931595 3571.875298 -1.871002387 0.45940845 -4.072633809 0.002788616 -2.910256503 -0.83174827 -2.910256503 -0.83174827

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Regression Table 5: Rainfall and Irrigation
Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Rainfall
1195.5 1196 1205.4 1196.5 1197.3 1196.8 1195.5 1194.8 1196.4 1195.6

Irrigation
24337 24419 21186 22395 23585 25066 25311 25216 26542 24545

SUMMARY OUTPUT Regression Statistics Multiple R 0.732830841 R Square 0.537041041 Adjusted R Square 0.479171171 Standard Error 2.199474856 Observations 10 ANOVA df Regression Residual Total 1 8 9 SS MS F Significance F 44.89448287 44.89448287 9.280149449 0.015909406 38.70151713 4.837689642 83.596

Intercept X Variable 1

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% 1232.142018 11.56334212 106.5558734 6.72199E-14 1205.476903 1258.807133 1205.476903 1258.807133 -0.00144937 0.000475775 -3.046333772 0.015909406 -0.00254651 -0.000352231 -0.00254651 -0.000352231

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8. BIBLIOGRAPHY
1) http://agropedia.iitk.ac.in/content/introduction-rice-0 2) http://www.agroecommerce.com/agroecom/BriefInfo/Crops/RiceInfo.asp 3) http://www.duke.edu/web/soc142/team3/Group%20Rice/History.htm 4) http://sourcing.indiamart.com/agriculture/articles/origin-and-history-rice-india/ 5) http://www.ricefest.com/all-about-rice/interesting-facts-about-rice 6) http://drdpat.bih.nic.in/Status%20Paper%20-%2001.htm#Rice Soils of India 7) http://drdpat.bih.nic.in/Status%20Paper%20-%2002.htm 8) http://www.advanceagriculturalpractice.in/w/index.php/Rice_in_india 9) http://www.velavanstores.com/Rice-Cultivation-Methods-in-India.asp 10) http://sourcing.indiamart.com/agriculture/articles/world-wide-rice-production/ 11) http://pib.nic.in/newsite/erelease.aspx?relid=80083 12) http://www.business-standard.com/india/news/indias-rice-export-in-2012-13-mayfalllow-domestic-production-fao/190083/on 13) http://sourcing.indiamart.com/agriculture/articles/export-rice-india/ 14) http://www.business-standard.com/india/news/india-is-worlds-biggest-rice-exporterin-2012-fao/496141/ 15) http://pib.nic.in/newsite/erelease.aspx?relid=81396 16) http://www.scribd.com/doc/56229902/Economics-Term-Paper-on-Analysis-of-demandand-supply-of-rice-in-India-and-income-demand-and-cross-price-elasticity-related-toit%E2%80%9D 17) https://www.gtap.agecon.purdue.edu/resources/download/2555.pdf 18) http://appscmaterial.blogspot.in/2011/02/irrigation-in-india.html 19) http://www.rkmp.co.in/content/irrigated-rice-eco-system 20) http://sourcing.indiamart.com/agriculture/articles/factors-influencing-price-rice/ 21) http://sourcing.indiamart.com/agriculture/articles/minimum-support-price-rice-india/ 22) http://drd.dacnet.nic.in/Rice%20Export%20-%2009.htm 23) http://www.velavanstores.com/Rice-in-India-Problems-of-Rice-Export-from-India.asp 24) http://www.infoplease.com/encyclopedia/science/rice-importance-rice-as-a-food.html 25) http://www.google.co.in/url?sa=t&rct=j&q=rice%20irrigation%20in%20india%20metho ds&source=web&cd=5&cad=rja&ved=0CEsQFjAE&url=http%3A%2F%2Fwww.inseda.org %2FAdditional%2520material%2FCD%2520%2520Agriculture%2520and%2520Environment%2520Education%2F4960

Irrigation%2520(IRS)%2FMethods%2520of%2520Irrigation057.doc&ei=hzPdUIG3JciaiQfF7IDgAw&usg=AFQjCNE2Ps3dxJIJL4zxkXRowg2hDRnUcg 26) http://www.irri.org/index.php?option=com_k2&view=item&layout=item&id=9151&lan g=en 27) http://www.knowledgebank.irri.org/rkb/index.php/rice-milling 28) http://www.slideshare.net/avnishbajpai/subsidies-in-india 29) http://www.ndtvmi.com/b4/dopesheets/rahul.pdf 30) http://www.rrtd.nic.in/agriculture.html 31) http://www.indiastat.com 32) Economic Intelligence Survey

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