Kakinada Deep water Port handles 1st Rice shipment from Chhattisgarh

Kakinada Deep

Following the recent decision of the Andhra Pradesh government to allow rice exports from the Kakinada deep water port, the first shipment of broken rice was exported on Feb 12th 2021.

This shipment was done by one of APEDA’s member exporters M/S Satyam Balajee Rice Industries Pvt Ltd (produced, sourced and processed at Chhattisgarh).

With an initial quantity of 32,250 metric tonnes of broken rice, the shipment is bound for a West African port.

The Agricultural and Processed Food Products Exports Development Authority which registers and supervises rice exports had earlier communicated to the Andhra Pradesh government to let exporters use the Kakinada deep water port due to the congestion being faced at Kakinada anchorage port.

The Rice Exporters Association, Kakinada had also made a similar request to the Andhra Pradesh government.

“As per sources Kakinada Anchorage port can handle 2 million tonnes of rice whereas the demand is said to be around 4 million tonnes”

It is informed that the anchorage port has a capability to handle just 2 million tonnes of rice whereas the demand is said to be around 4 million tonnes.

Therefore the Andhra Pradesh government had issued a GO permitting rice exports from Kakinada deep water port (operated by Kakinada seaports limited) only after the minimum 10 vessels requirement has been utilized at the government operated Anchorage port.

As per a release from the ministry of commerce and industry India’s exports of Basmati rice during the April-December, 2020 stood at Rs 22,038 crores (2947 US$ Million) against Rs. 20,926 crores (2936 US$ Million) reported during the same period in the previous fiscal. The exports of aromatic and long-grain rice witnessed a growth of 5.31% in Rupee terms and 0.36 % Dollar terms.

While India’s non-basmati rice exports spiked to Rs 22,856 crore (3068 US$ Million) during April-December, 2020 against Rs 10,268 crore (1448 US$ Million) during the April-December, 2019 period. 

The exports of non-Basmati witnessed a growth of 122.61 % in Rupee terms and 111.81 % Dollar terms.

A key factor attributed to such a spike in non-Basmati rice exports was demand from many African and Asian countries during COVID19 pandemic, said the release.

“India’s exports of non-Basmati witnessed a growth of 122.61 % in Rupee terms and 111.81 % Dollar terms”

Many countries wanted to create rice stocks so that they could be used during emergencies. Another factor which helped India’s non-basmati rice exports was Thailand, the second-largest rice exporter in the world after India, which suffered a drought last year that has impacted the output, informed the release. 

The flag-off ceremony at the Kakinada port was attended by Dr M Angamuthu, Chairman, APEDA, Mr D Muralidhar Reddy, District Collector, East Godavari, Dr G Lakshmisha, Joint Collector, East Godavari, Mr M Muralidhar, CEO, Kakinada Sea Port, SS Nayyar, General Manager and Mrs Vinita Sudhanshu and other stakeholders.

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