Rice is an important ingredient of the global diet. It is a rich source of carbohydrates. As such, people around the globe consume it for its rich calorific value. With the rise of globalization and liberalization, even countries deficient in rice production started exporting rice from the surplus production countries.
Recently the Government of India has introduced a new policy that the National Food Security Act which requires 33.6 million tons of rice per year for its public distribution system.
Policy Makers from India are developing several policies for consistent food price value in the domestic as well as for the international market. They also ensure that the policies will not distort the market value and maintain food security in the domestic market.
Due to these policies, India’s rice export also plays a significant role in the international market.
Impact of NFSA on Indian Market Growth
India’s National Food Security Act generated much debate among Policy Makers. The policies that are released in the market can able to reduce poverty or hunger in the domestic market but unable to consistent growth in the international market.
The impact of NFSA has a negative impression on rice industry growth. It causes changes in rice consumption in India resulting in a decrease in the rice export growth.
Since rice is the major agricultural export commodity in India, so it has great value with a positive effect in the Indian market. Such a type of policy provides a negative impression on the global market.
The overall economy of India may be on downwards trends due to some complications in the market. There are some precautions should be taken by Policy Makers in India are as follows:
Certificate of Inspection by the European Union
Kohinoor Basmati Rice
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