NEW DELHI: Per capita consumption of rice was declining in most Asian economies due to rising income and rapid urbanisation. At the same time, global trade in rice was growing at a faster rate than other major cereals like wheat and corn.

Second largest exporter

Indian exports in basmati and non-basmati rice had touched 5.1 million tonnes last year. The country is the second largest exporter of rice after Thailand. In comparison, China is a minor exporter of rice.

Agriculture scientists participating at the second International Rice Congress here said that global trade in rice--often distorted by subsidies in developed and even developing countries--increased from four to seven per cent of rice production between 1992 and 2004. Rising rice production had led to a decline in real prices for the crop, which helped sustain household food security.

Decrease in area

Funing Zhong of the Nanjing Agricultural University in China said that the cultivated area under rice had decreased in his country as the area under fruits and vegetables production had increased from three to nine per cent of the total cultivated area. This was impacting the area available for rice production.

India's adoption of more trade-friendly policies during 1990s led to a dramatic increase in rice exports by more than 400 per cent. However, with the greater integration of the country into global markets, the key question was how India should deal with the rising price volatility in rice.

Inferior commodity

According to Ashok Gulati, Director in Asia International Food Policy Research Institute, rice in future would become ``inferior'' commodity--in terms of trade, not quality--in Asia but its importance will grow in Africa. ``As incomes go up and pressure on land increases, there will be a reduction in demand for rice, meaning thereby, that it will become an inferior commodity,'' he explained.

Volatility in price

Dr Gulati said appropriate marketing institutions could address the concern of volatility in prices of rice in the international market.

Policy distortions in terms of subsidies and protection to domestic rice markets that emanate from developed countries and spill over to developing countries like India, Thailand and Vietnam impact the least developed countries like Bangladesh. ``To eliminate such distortions countries need to return to the negotiating table under the World Trade Organisation.''

Warning

He also warned against complexities in the rice market due to coming up of genetically modified rice, which was at experimentation and laboratory trials stage at present.

``The issue will be linked to food safety and certification of GM foods (on which there are differences between nations).''

New approaches

While D.S. Brar of International Rice Research Institute brought out the new approaches (molecular marker assisted selection of genes) in rice breeding for creating resistance to various diseases and pests, P.K. Agrawal, convenor of the session on Rice Seeds, pointed out that availability of quality seed at the right time, at the right place and at affordable price was still a problem in major rice growing countries.

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