India’s Grain Exports Fall; Panjab Faces Grain Storage Crisis

According to a report by the U.S. Department of Agriculture (USDA), India’s role as a key supplier in the global grains market has diminished significantly over the past three years, largely due to strong domestic demand and govt. policies aimed at preserving internal supplies. The report highlights that from the 2020-21 to 2023-24 trade years, India’s corn exports are expected to drop by 86%, rice by 20%, and wheat by 90%. The USDA notes that India’s share in the global market for restricted grain products is nearly 7%, with domestic policies continuing to influence its export potential. Panjab also faces a looming crisis as its godowns are filled to capacity with 19.2M tonnes of foodgrains, leaving no room for the expected 18.5M tonnes of paddy arriving in mandis (grain markets) starting 1 Oct. Director of Food and Civil Supplies, Puneet Goyal, stated that 15 goods trains are transporting 55K tonnes of foodgrains out of the state daily, aiming to clear the wheat stock by December. Currently, 1.4M tonnes of wheat are stored in the open. At the same time, Panjab saw a 12.58% increase in basmati rice cultivation this Kharif (Summer) season, expanding to 671K hectares from 596K last year, with Amritsar leading at 146K hectares followed by Muktsar, Fazilka, Tarn Taran, and Sangrur, according to Panjab Agriculture Minister Gurmeet Singh Khudian. The state also recorded a 46.5% rise in direct seeding of rice aka DSR, reaching over 252K acres. Basmati cultivation is showing a promising rise in popularity among farmers, along with bans on pesticides for export quality, as they aim to reach the global market.