- Govt restrictions, higher procurement costs weigh on exports
- Traders shift to Chhattisgarh, Chennai ports to stay competitive
Raw rice exports from Kakinada Anchorage Port, in Andhra Pradesh, dropped nearly 50% in March-July 2025, hit by government restrictions and rising procurement costs. The TDP-led NDA government tightened checks after reports of rice meant for the Public Distribution System (PDS) being diverted into export channels. Increased surveillance, warehouse inspections, and seizures forced exporters to scale back or divert shipments.
Exporters stated that shipments from Kakinada are no longer viable, with costs at the port touching INR 29/kg against a viable export price of INR 26-27/kg. In contrast, Chhattisgarh and other ports offer cheaper grain and smoother operations, prompting many firms to re-route cargo. The decline has also impacted Kakinada’s economy, hurting around 20 port-based firms and leaving thousands of workers, from truckers to barge operators, facing reduced incomes.
Akshay Mittal, Partner at AGS Foods, explained, “Persistence and inconsistency of enforcement have made business uncertain. While bottlenecks may ease in the coming months, exporters have already moved cargo to Chennai, Mundra, Kandla, and even via China routes. For the upcoming season, traders are preparing with cautious optimism, supported by industry associations and a more favourable central government stance on rice exports.”
Leave a Reply