{"id":83135,"date":"2026-01-19T11:01:16","date_gmt":"2026-01-19T05:31:16","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=83135"},"modified":"2026-01-19T11:16:59","modified_gmt":"2026-01-19T05:46:59","slug":"india-rice-production-growth-surplus-and-hidden-costs","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/india-rice-production-growth-surplus-and-hidden-costs\/","title":{"rendered":"India Rice Production: Growth, Surplus and Hidden Costs"},"content":{"rendered":"<h2><b>India Rice Production Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India has overtaken China to become the world\u2019s largest rice producer in 2024\u201325, producing about 150 million metric tonnes and accounting for nearly 28% of global output.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">While this marks a sharp rise from a decade ago and reflects stagnant Chinese production, the achievement has downsides.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Paddy\u2019s profitability has encouraged its spread into water-scarce regions, yields remain uneven across states, and its dominance raises concerns about water stress, crop diversification, and long-term nutritional security.<\/span><\/li>\n<\/ul>\n<h2><b>Steady Rise in India\u2019s Rice Production<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Long-Term Growth Trend<\/b><span style=\"font-weight: 400;\"> &#8211; India\u2019s rice output has grown consistently since the Green Revolution era. Between 1969\u201370 and 2024\u201325, the area under paddy <\/span><b>expanded by over 36%<\/b><span style=\"font-weight: 400;\">, yields tripled, and total production rose nearly fourfold.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sharp Expansion in the Last Five Years<\/b><span style=\"font-weight: 400;\"> &#8211; The most notable surge occurred recently. Paddy area increased from 43.66 million hectares in 2019\u201320 to 51.42 million hectares in 2024\u201325, while production jumped from 118.87 to 150 million metric tonnes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Growing Global Share<\/b><span style=\"font-weight: 400;\"> &#8211; As output rose, India\u2019s share of global rice production climbed from 21.95% in 2011 to about <\/span><b>28% in 2024<\/b><span style=\"font-weight: 400;\">, placing it just ahead of China and far above other producers like Bangladesh and Indonesia.<\/span><\/li>\n<\/ul>\n<h2><b>India\u2019s Rice Stocks: Surplus Beyond Food Security Needs<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Rising Central Pool Reserves<\/b><span style=\"font-weight: 400;\"> &#8211; With sustained production growth and high procurement, rice stocks in the central pool have risen steadily. As of January 1, 2026, stocks stood at <\/span><b>63.06 million metric tonnes<\/b><span style=\"font-weight: 400;\">, including unmilled paddy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Far Above Buffer and Welfare Requirements<\/b><span style=\"font-weight: 400;\"> &#8211; This level far exceeds prescribed norms. Stocking rules require only 7.61 million tonnes on January 1, while annual needs under the NFSA and welfare schemes are about 37.2 million tonnes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Efforts to Reduce Excess<\/b><span style=\"font-weight: 400;\"> &#8211; The government has attempted to offload surplus rice through open market sales and by diverting rice for ethanol production. Despite these measures, stocks remain elevated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Procurement Concentrated in Few States<\/b><span style=\"font-weight: 400;\"> &#8211; During the 2023\u201324 kharif season, the Food Corporation of India procured 525.48 lakh tonnes\u2014about 38% of national output. Over half of this came from Punjab, Haryana, Chhattisgarh, and Odisha.<\/span><\/li>\n<\/ul>\n<h2><b>Why Paddy Dominates Indian Agriculture<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Wide Cultivation and Scale<\/b><span style=\"font-weight: 400;\"> &#8211; Paddy is India\u2019s most widely grown crop, cultivated in over 600 districts and spread across more than 514 lakh hectares\u2014far exceeding the area under wheat or other major crops.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Assured Returns Through MSP<\/b><span style=\"font-weight: 400;\"> &#8211; A key attraction is assured procurement at Minimum Support Price. Paddy offers higher net returns per hectare than crops like maize and moong, making it financially safer for farmers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Weak Performance of Alternative Crops<\/b><span style=\"font-weight: 400;\"> &#8211; Stagnant or declining yields in crops such as cotton reduce their attractiveness. Compared to global averages, India\u2019s yields in some non-paddy crops remain low.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strong Export Demand<\/b><span style=\"font-weight: 400;\"> &#8211; India is the world\u2019s leading rice exporter, earning substantial foreign exchange from basmati and non-basmati rice exports to West Asia, North America, and Europe, reinforcing paddy\u2019s appeal.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The country exported <\/span><b>six million tonnes of basmati<\/b><span style=\"font-weight: 400;\"> and <\/span><b>14.13 million tonnes of non-basmati rice<\/b><span style=\"font-weight: 400;\"> during 2024-25, earning $5.9 billion and $6.5 billion respectively.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India exported basmati to Saudi Arabia, Iraq, Iran, Yemen, the UAE, the US, the UK, Kuwait, Oman, Qatar, Jordan and Israel during 2024-25.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b>Environmental and Regional Challenges of Paddy Cultivation<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Paddy is an extremely <\/span><b>water-intensive crop<\/b><span style=\"font-weight: 400;\">, requiring nearly <\/span><span style=\"font-weight: 400;\">1\u20133 tonnes of water to produce just one kilogram of rice<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Its widespread cultivation has severely depleted groundwater in many regions.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In Punjab, excessive groundwater extraction has led to serious environmental and health problems, while paddy expansion into already water-stressed states has worsened declining water tables.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rice productivity also varies sharply across states due to differing agro-climatic conditions.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In 2024\u201325, yields ranged from 4,428 kg per hectare in <\/span><b>Punjab<\/b><span style=\"font-weight: 400;\"> and 3,928 kg in <\/span><b>Andhra Pradesh<\/b><span style=\"font-weight: 400;\"> to much lower levels in <\/span><b>Bihar<\/b><span style=\"font-weight: 400;\"> (2,561 kg) and <\/span><b>Uttar Pradesh<\/b><span style=\"font-weight: 400;\"> (2,824 kg), compared to the <\/span><b>national average<\/b><span style=\"font-weight: 400;\"> of 2,929 kg per hectare.<\/span><\/li>\n<\/ul>\n<h2><b>Push for Crop Diversification Away from Paddy<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">With a growing preference for paddy among farmers, the Union government is intensifying efforts to promote crop diversification.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The objective goes beyond farm incomes to include nutritional security and conservation of scarce water resources.<\/span><\/li>\n<\/ul>\n<h3><b>Incentives Linked to Fiscal Savings<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Agriculture Ministry has proposed incentivising farmers who shift away from paddy to alternative crops.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These incentives could be financed from savings in the economic cost of rice, estimated at <\/span><b>\u20b91.36 lakh per hectare<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This cost reflects expenses borne by the Food Corporation of India on MSP-based procurement, milling, transport and storage.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">According to officials, rice stored by the FCI costs around \u20b933 per kg, and with an average yield of 41.25 quintals per hectare, government spending reaches about \u20b91,36,000 per hectare, excluding subsidies on power, fertilisers and seeds.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Officials suggest focusing diversification efforts on districts with below-national-average paddy yields (2,929 kg per hectare) and relatively lower paddy coverage.<\/span><\/li>\n<\/ul>\n<h3><b>Promoting Oilseeds and Pulses<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The strategy prioritises oilseeds and pulses to reduce India\u2019s heavy dependence on edible oil imports.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">These crops would be promoted in a phased manner, aligned with agro-climatic suitability and soil conditions, to ensure sustainable transitions for farmers.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/india-has-surpassed-china-in-rice-production-but-this-love-for-paddy-is-not-without-pitfalls-10475138\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India Rice Production has surged past China, but rising stocks, water stress, and paddy overdependence raise concerns over sustainability and crop diversification.<\/p>\n","protected":false},"author":18,"featured_media":83160,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[4812,60,22,59],"class_list":{"0":"post-83135","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-india-rice-production","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/83135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=83135"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/83135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/83160"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=83135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=83135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=83135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}