In a major boost to India’s rice exports potential, a consignment has been shipped from the Kakinada deep-water port. Andhra Pradesh government had granted approval for use of Kakinada deep-water port for rice exports as adjourning anchorage port was facing congestion.

A shipment of one of the Agricultural and Processed Food Products Exports Development Authority (APEDA)’s member exporter M/S Satyam Balajee Rice Industries Pvt Ltd (produced, sourced and processed at Chhattisgarh) from the Kakinada deep-water port was shipped on 12^th February, 2021.

A flag-off ceremony at the Kakinada port was attended by Dr M Angamuthu, Chairman, APEDA, Mr D Muralidhar Reddy, District Collector, East Godavari, Dr G Lakshmisha, Joint Collector, East Godavari, Mr M Muralidhar, CEO, Kakinada Sea Port, SS Nayyar, General Manager and Mrs Vinita Sudhanshu, Deputy-General Manager, APEDA and officials from Directorate of Industries & Export Promotion, Port Officer, PQ official, representative of trade and labour attended the flag off ceremony.

APEDA, which registers and supervises rice exports, had communicated to the Andhra Pradesh government to let exporters use the Kakinada deep-water port. The use of the Kakinada deep-water port, under the control of the Andhra Pradesh Maritime Board, will help in boosting India’s rice exports potential. The Kakinada anchorage port has been facing congestion problems, especially in shipping rice, as demand for rice from India has seen sharp spike especially in the current financial year (2020-21). The Rice Exporters Association, Kakinada had also made a similar request to the Andhra Pradesh government.

India’s exports of cereals – rice, wheat and coarse cereals witnessed an impressive rise during the first three quarters of 2020-21 financial year. As per the data during April-December, 2020, the exports of cereals rose to ₹ 49,832 crore from ₹ 32,591 crore (4581 US$ million) reported during the same period in the previous year. The exports of cereals witnessed a rise of 52.90% in Rupee term and 45.81% in US dollar term. The total share of value of cereal exports was 48.61% in Rupee terms in the total export of (APEDA) scheduled products.

As per the data during April-December, 2020, the export of Basmati Rice was ₹ 22,038 crore (2947 US$ Million) against ₹ 20,926 crore (2936 US$ Million) reported during the same period in the previous year. The exports of aromatic and long-grain rice witnessed a growth of 5.31% in Rupee terms and 0.36 % Dollar terms.

During the first three quarters of 2020-21, the shipment of non-Basmati rice witnessed an impressive spike. The non-basmati rice exports was  ₹ 22,856 crore (3068 US$ Million) during April-December, 2020 against ₹ 10,268 crore (1448 US$ Million) reported during April- December, 2019 period. The exports of non-Basmati witnessed a growth of 122.61 % in Rupee terms and 111.81 % Dollar terms.

A key factor attributed to such a spike in non-Basmati rice exports was demand from many African and Asian countries during COVID19 pandemic. Many countries wanted to create rice stocks so that they could be used during emergencies. Another factor which helped India’s non-basmati rice exports was Thailand, the second-largest rice exporter in the world after India, suffered a drought last year that has impacted the output.

The sharp spike in rice exports especially during a phase where globally the COVID19 pandemic has disrupted supply changes many commodities, has been attributed to the government taking prompt measures to ensure exports of rice while taking all the COVID19 related safety precautions.

Port access approval enables diversion of rice exports to reduce anchorage congestion and support export capacity. Approval for the use of the Kakinada deep-water port was granted to divert rice exports from a congested anchorage port. The decision, communicated after requests by exporters and the national export registration and supervision body, relies on the Andhra Pradesh Maritime Board's control of the facility and aims to streamline shipments, relieve anchorage congestion and maintain export capacity while following COVID-19 safety measures.