With reference from ancient manuscripts and writings, India has been know to have started growing rice. Some say, it originated in India and Burma and others say in South India. But it is believed that rice was originally cultivated in China (around 2500 B.C.). Rice is said to have fed the most people over the longest time period than any other pulse, cereal or crop!

90% of rice grown commercially is consumed directly by humans. Rice is the staple food of more than half of the world’s population. Asia and Pacific regions contribute 90% of the whole world’s produce. The locals of the area consume almost all. Rice cultivation in India is the largest in the world whereas it is second only to China in the production of rice.

Varieties

Rice is characterized by different factors such as temperature, climate, requirements, temperature etc. Due to this there are many varieties of rice that differentiate from each other on the basis of the above mentioned. Most of the varieties require 120-150 days (those which are cultivated for commercial purposes)

Grading

Rice is graded into 3 grades

• Common variety - short bold & long bold rice  

•  Fine variety - medium slender rice

•  Superfine variety - long slender & short slender rice

Rice has about 23 species whereas only two are know for their commercial purposes. The two species are Oryzae sativa (Asian rice) and Oryzae glaberrima (African rice).  The former specie is believed to be the most commonly grown species in the world. 

Quality

Factors adversely influencing the quality of rice

• Moisture

• Age of rice

•  Are the grains damaged or not

• Location of the rice growing field

• Different varieties

Factors influencing the price of rice

• Weather, Climate, Rainfall

• Government Policy (especially the export import policy)

• Import demands as well as domestic demand

•  Consumption*

* Rice consumption depends on two factors – population and income.

Lets take for example Asia. Rice is the staple food of Asia. Low-income groups consume more rice according to the per capita income increase. But as the income increases, there arrives a point when the consumption starts to dip. Income growth and reduction in population result in a low consumption of rice.

A healthy and balanced diet always includes rice (in most vegetarian diets). It consists of carbohydrates, and helps reducing a fat diet.

Nutritional Properties of Rice-

•  It is cholesterol free

•  Almost fat-free

• Sodium-free

• Consists of carbohydrates

• Digestible

• Contains a little more than a 100 calories (per half-cup) 
  

Rice in India

Rice is grown in many regions across India. For about 65% of the people living in India, rice is a staple food for them. India alone has about 45 Million Hectares of Area, and it produces close to 93 Million Metric Tons of rice from 2001 onwards. Out of the Indian states West Bengal is largest in rice production followed closely by UP and Andhra Pradesh. Punjab, Orissa and Tamil Nadu are the other growing states. Value of rice traded in India is equivalent to Rs. 34,800 crores.

Some facts-

• Out of the total agricultural and crop produce, rice alone accounts for 42% of this. It provides employment to 70% of citizens living in villages.

• Buffer stock available in the country is about 30 Million Tons.

• Rice of Andhra Pradesh is known as Annapurna, and it is supplied to many other states of India.

• Out of the total area cultivated under cereals, rice makes up 22% of this.

Rice area in India was about 2.5 Million Hectares in 1960. But now it has decreased to app. 2.2 Million Hectares. Surprisingly the production then was 3.5 Million Tonnes and now it has surged ahead to 8.2 Million Tonnes. It is also ranked among the firsts in national productivity.

Rice in the world

Approximately 110 countries cultivate rice. During the two previous years, the average rice cultivated around the world was about 385 Million Metric Tons. Out of this, 90% is produced in Asia itself. China and India account for more than half of the global production.
Growing regions across the globed- Bangladesh, Thailand, Indonesia, Myanmar and Vietnam.

International trade in rice is only 5%. Exports are pegged at a staggering 25 Metric Tons. About 50% of the rice grown in the world is consumed on the same farm where it is actually grown. India has slowly become one of the main consumer and exporter of rice in the world.

There are four types of rice produced across the world

•  Indica from tropical and subtropical regions. It is by far the main type of rice, which accounts for over 75% of trade.

• Japonica from cooler climates than subtropical regions. Japonica registers a 12% of the worldwide trade.

• Jasmine from Thailand

• Basmati from India and Pakistan. It is the leading quality of rice in the world and fetches one of the best export price in cross-country trade, with it being exported most by India and followed by Pakistan. It is also called as the King of Rice, which originally originates from the Indian Sub-continent.

The latter two account for the remaining % of the trade. A little part of the remainder is also made by rice grown in SE Asia.

Main exporters- China, India, Pakistan, Vietnam and USA.

Main importers- European countries, Saudi Arabia, Iraq, South Africa etc.

Rice futures are lots of rice, which are traded. The time told is somewhere in the future and at a price both parties agree to.
This system makes it easier for a farmer or trader/miller of rice to be able to deal in rice for a specified time period in future (for eg: 6-9 months in advance) But the prices by the farmer/miller/trader and the second party differ.
Traded mainly in NCDEX, NMCE and MCX (National Commodity and Derivatives Exchange Ltd., National Multi Commodity Exchange of India Ltd.  and Multi Commodity Exchange of India Ltd. respectively.)


Future contract specifications of rice in various commodity exchange