Growth and Stability of Basmati and Non-basmati Rice Export in India

Abstract

International trade plays an important role in the economic development of a country. India stands as a world's largest producer and exporter of basmati rice. During 2017-18 the country has exported globally about 40.56 Lakh tonnes of Basmati Rice and 86.48 Lakh tonnes for Non-Basmati rice, the worth of  268.70billion and  229.68 billion respectively. India is the leading exporter of the rice as there is a strong demand for Indian rice in the international markets. So, the present study isto assess the trend and instability in terms export of basmati and non-basmati rice in India. The study has revealed that Indian rice exports performance during the study period 1980-81 to 2017-18. Further, the study period will be divided into three sub-periods. In overall period, the basmati rice export value is highest (16.45 per cent per annum) when compared to the export quantity (8.35 per cent per annum) and unit value (7.48 per cent per annum). In overall period, compound growth rate shows positive growth rate for quantity, value, and unit value of non-basmati rice with 1 per cent level of significance. The compound growth rate total rice shows positive growth rate for quantity (11.06 per cent), value (17.87 per cent), and unit value (6.13 per cent) of total rice with 1 per cent level of significance. Based on the result of the analysis, the instability index was found to be higher for export quantity (51.86%) of basmati rice than its value (88.07%) and unit value (31.23%). Overall, the rice export analysis indicates positive signals for the export of basmati and non-basmati rice from India. Which is confirmed through increasing growth in III period after 2010 and also having stability in the rice export price both basmati and non-basmati rice in the international markets.