2018

Rice how much it cost?

Deepak Ramchandani
 Deepak Ramchandani

Rice : How much it costs?

About Rice:-

India is one of the world's largest producers of rice and brown rice,
accounting for 20% of all world rice production.

Rice is one of the chief grains of India. Moreover, this country has the largest
area under rice cultivation, as it is one of the principal food crops. It is in fact
the dominant crop of the country.

Rice is mainly grown in rain fed areas that receive heavy annual rainfall. That
is why it is fundamentally a kharif crop in India. It demands temperature of
around 25 degree Celsius and above and rainfall of more than 100 cm. Rice is
also grown through irrigation in those areas that receives comparatively less
rainfall.
Gujarat Region Profile:- Produces 1.56% of India’s total rice production

Area cultivated in hectors:- 701000 – Year 2012-13

Production or Rice :-1541000 tons

Source-http://sap.inpi.net/article/gujarat

Water requirement of rice crop at different growth stage:-

Sr.No Stage of growth Average water % of water

requirement in requirement
mm
1 Nursery 50-60 5
2 Main field preparation 200-250 20
3 Planting to Panicle initiation 400-550 40
(PI)
4 PI to flowering 400-450 30
5 Flowering to Maturity 100-150 5
Total 1200-1460 100

Source- http://agropedia.iitk.ac.in/content/irrigation-water-
management-paddy

Water consumed during the year- Gujarat

701000 hectors x 10000= 7010000000 sqmts

Water requirement -1.46 mts

Total cubic meters of water=7010000000 x1.46= 10234600000

I.e in Million liters- 10234600

I.e in MLD=28040 which is equal to 10 times daily water supplied through

State Wide Drinking Water Supply Grid
Per capita utilization for Rice production:

Total cubic meters of water required=7010000000 x1.46= 10234600000

I.e 102346 lakh cubic meter

Population of Gujarat: About 650 lakhs

Per capita utilization :-157.45 cubic meter/ capita

Per capita availability of fresh water: The State has 185 river basins and the
available quota of water in the State is 55608 million cubic meters, out of which,
38100 million cubic meters is surface water, which is only 2% of the entire quota
of surface water of the country. Moreover, the available quota of surface water
is also not distributed properly The underground water resources of State are
17508 million cubic meters. (55608/65 million population=855cum/capita)

Water Used for Rice v/s Other Use

18%
Water used for
Rice Production
Water Used for all
other purposes
82%
Water consumption per Kg

10234600000/ (1541000 x 1000)= 6.641 cubic meter

i.e 6641 liters per Kg

Cost of Narmada Water

Reference :-As per Balance Sheet 31st March 2016

 Tangible assets:-Rs. 39689.38 Crores

 Capital works in progress:-Rs. 8961.53 Crores
 Total capital works:=Rs. 48650.91 Crores, Say 48650
 Total water reservation of Narmada=9.0 MAF
 Inflated cost: Rs 48650 x 1125/( (1125+100)/2)= Rs 89357 Crores
 Internal rate of return on capital = 89357 x 16%= Rs 14297 Crores
 Operational Cost= Rs 1445.83 Crores
 Total cost=14297+1445.83=15743 crores
 Cost per KL= 15743 x 100x 100000/ 30415 MLD x1000x365=13.93 /
KL, Say Rs 14/ KL (9 MAF= 30415 MLD)

Cost of water used for 1 kg or rice= 6.6 x 14=92.4 / Kg, about Rs

100/ Kg
Rajkot food grain Price of 22nd March 2018- Rice

 IR-8 :-Rs 22 to 22.5/ kg

 Parimal:- Rs 24 to 24.5/ kg
 Punjab Parimal: Rs 30 to 30.5/ kg
 Basmati medium: Rs 71 to 72/ Kg
 Basmati Best:- Rs 101 to 102/ Kg

Cost of water v/s Selling price of Rice

120

100

80

60

40

20

0
Water cost of IR-8 Parimal Punjab Basnati Basmati Best
Production Parimal medium

Food habits of Gujarati people:

Rice is the compulsory part of Lunch or Dinner of Gujarati People, but it is

restricted to few spoons, the state is water scare area, hence it is believed
that people had formed the habit of limited utilization of rice due to same.
Source of data is the internet ,on the basis of which calculations are made,
calculations of cost of Narmada water is based on available data of investment
and operations and is calculated on the partial commercial basis in which
repayment of capital is not considered. I am not the expert in agriculture field
hence the calculations may not be treated as perfect and authentic but it is the
established fact that rice needs too much of water and the State like Gujarat
where water is scarce shall not use huge quantum of water on rice cultivation.

There may be many social, economic and political aspects to decide the
restriction of rice cultivation in the state but the days are not too far when the
State Governments shall have to publish the Water Budgets.

I want to mention here that my Grand Parents was in business of agriculture

in Sindh before independence, he was owner of 173 Acres and 23 Gutha of
land with the property index No. S/TP/31 in the Deh Dhandi village, Taluka
Samero of District Tharparkar. In the document of Additional Settlement
Commissioner Delhi dated 26-1-1955 it is mentioned about the above
property which also includes “The land was irrigated by irrigation barrage
canal and rice restriction” I am having this document since years but
looking to the current situation of the state and working on this topic, I started
reinterpretation this document that why the word “ rice restriction” is
mentioned in the title of the land, now I am understanding that Tharparkar
which is on Rajasthan Border is the tail end of Sindhu River, hence the
authorities might have restricted the cultivation of rice. Copy of the document
is also placed here with. Also the ordinance for the same is in existing in
Pakistan Since 1959

The view and expressions in the above are my personal and it has nothing to
do with my current status in the organization.
 3/26/2018 THE [PUNJAB] RICE (RESTRICTIONS ON CULTIVATION) ORDINANCE, 1959
http://punjablaws.gov.pk/laws/115.html 1/2
THE PUNJAB RICE (RESTRICTIONS ON CULTIVATION) ORDINANCE,
1959
(W.P. Ordinance LVIII of 1959)
[17 December 1959]

CONTENTS
SECTIONS
1. Short title, extent and commencement.
2. Definitions.
3. Powers to regulate cultivation of rice.
4. Penalty.
5. Jurisdiction of civil court.
6. Power to make rules.
An Ordinance to regulate the cultivation of rice in the province of [the Punjab]
Preamble.— WHEREAS in order to check the increase of water logging, salinity, seepage and
the resultant damage to land in the Province of [the Punjab], it is expedient to regulate the
cultivation of rice in the
Province in the manner hereinafter appearing;
Now, THEREFORE, in pursuance of the Presidential Proclamation of the seventh day of
October, 1958, and in exercise of all powers enabling him in that behalf, the Governor of West
Pakistan is pleased to make and promulgate the following Ordinance:-
1. Short title, extent and commencement.— (1) This Ordinance may be called the [5][Punjab]
Rice (Restriction on Cultivation) Ordinance, 1959.
[(2) It extends to the whole of the province of [the Punjab], except the Tribal Areas.]
(3) [* * * * * * * * * * * * ]
2. Definitions.— In this Ordinance—
(i) “Board of Revenue” means the [Board of Revenue, Punjab], as established under the [[Punjab
Board of Revenue Act, 1957];
(ii) “Government” means the [Provincial Government of the Punjab.]
3. Powers to regulate cultivation of rice.—[(1)] The Board of Revenue may, by notification,
prohibit or impose such restrictions on the cultivation of rice in such area as may be specified in
the notification:
Provided that a cultivator shall be entitled to gather the standing crop raised by him before the
issue of such notification.
[(2) The Board of Revenue or any officer authorised by it in this behalf may, in the interest of
operations for reclamation of land, relax, in respect of any specified area, estate or holding, the
prohibition or all or any of the restrictions imposed on cultivation of rice under sub-section (1),
for a period not exceeding three years.

Explanation— For the purposes of this section the expressions “estate” and “holding” shall have
the meaning respectively assigned to them in the West Pakistan Land Revenue Act, 1967.]
4. Penalty.— Whoever contravenes the provisions of this Ordinance or the rules made or
directions issued there under shall, on a complaint made in writing by any Revenue Officer, be
punished with fine which may extend to ten times the land revenue assessment chargeable for the
crop or simple imprisonment not exceeding six months or both.
5. Jurisdiction of civil court.— No civil court shall have jurisdiction to entertain any claim, suit,
prosecution or any other legal proceedings for anything done, or intended to be done in good
faith under the provisions of this Ordinance, or the rules made and directions issued thereunder.
6. Power to make rules.— For the purposes of carrying into effect the provisions of this
Ordinance, the Board of Revenue may frame rules and issue such directions in the form of
Standing Orders as it may deem fit.