India rice output set for biggest drop in nearly 20 years as weak rains hit yields
India's rice production faces a significant decline this year. Below-normal rainfall during maturation threatens to reduce crop yields substantially. This drop will increase local prices and make exports more expensive. However, large existing stockpiles will allow India to maintain record export levels. Farmers may receive higher prices for premium varieties in the open market.
India's rice production is set to experience its largest decline in nearly two decades due to insufficient rainfall during the crop's maturation period, according to industry officials. This will be the first such drop in ten years, with estimates suggesting a significant 10 million metric ton reduction, representing an approximately 6.5% decrease from last year's record harvest of 154 million tons.
The reduction in yields is primarily attributed to below-normal rainfall, with southern and eastern states receiving as little as 42% less than the average. The prolonged dry spell has severely impacted yield potential, with the monsoon season to date having delivered 15% less rainfall than normal. Despite these challenges, India's extensive rice stockpiles should enable the country to maintain export levels at record highs, even as local prices rise and export prices reach their highest point in over a year.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- India’s rice production faces biggest drop in two decades thehindubusinessline.com
