Srinagar, Aug 13: As rice prices have reached their highest levels in almost 15 years, Jammu & Kashmir’s paddy farmers are looking ahead to some decent incomes after a long time.
Rice prices have risen sharply globally after India announced ban on non-Basmati rice in July to cool down domestic prices with abundant supplies. The central government in July explained the move to ban non Basmati Rice exports as an attempt to calm domestic rice prices, which had risen more than 30% since October 2022.
According to pricing data analysed by Ziraat Times, the prices of rice in global markets have been rising in July and August of 2023. The Food and Agriculture Organization of the United Nations (FAO) All Rice Price Index averaged 129.7 points in July, up 2.8% from a month ago and the highest since September 2011. The index tracks prices in key exporting countries, including India, Thailand, Vietnam, Cambodia, and Pakistan.
The latest threat to rice supplies comes from Thailand, the world’s second-biggest shipper, where authorities have been encouraging farmers to switch to crops that need less water as the country braces for drier conditions with the onset of El Nino. The cyclical climate pattern tends to bring reduced rainfall to Southeast Asia and other areas, with negative impact on crops.
As a result of these and other multiple factors, rice prices are expected to remain high in the coming months. The FAO forecasts that the FAO All Rice Price Index will average 125 points in 2023/24, up from 108.4 points in 2022/23.
How have the prices been influenced in the country?
Both wholesale and retail prices of rice have shown an upward trend in India since 2022. Here is a comparison of the cost of rice in wholesale and retail markets in India in July and August of 2023 compared to 2022:
| Variety of Rice | Wholesale Price (INR/kg) | Retail Price (INR/kg) | Increase in Price (2023 vs 2022) |
|---|---|---|---|
| Basmati Rice | 32-35 | 38-42 | 16-20% |
| Non-Basmati Rice | 24-28 | 30-34 | 25-30% |
Price situation in Jammu & Kashmir:
According to the wholesale data collected by Ziraat Times, the price of rice in Kashmir has been rising steadily in 2023, compared to previous years. The price of basmati rice has increased by about 20%, and the price of non-basmati rice has increased by about 15%. While the consumption of Basmati Rice is limited in Kashmir, with the limited supplies coming through the Public Distribution System (PDS), most families now rely on buying rice from the open market.
While the locally produced rice is largely consumed domestically, some farmers sell a portion of their locally produced rice, mostly at low prices.
In recent years, with the production costs of rice going up, and incomes not meeting the production costs, there is a huge trend across J&K, mainly in rice rich Kashmir valley to switch to cash crops and fruit trees.
Analysts believe that if rice prices fetch more decent incomes, many farmers would still choose to stay with rice cultivation for food security reasons.
Here is a table of the price rise trend of rice in Kashmir in 2023 compared with previous years:
| Variety of Rice | Price in 2022 (INR/kg) | Price in 2023 (INR/kg) | Increase in Price (%) |
|---|---|---|---|
| Basmati Rice | 28 | 33.6 | 19% |
| Non-Basmati Rice | 22 | 25.2 | 14% |
Note: This price trend is a consolidated trend including various rice varieties. There might be price discrepancies between various varieties, and Ziraat Times has not broken down that detail here for non availability of full data.
