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Kakinada Port leads in rice exports

by Maritimegateway
March 29, 2021
in News
Reading Time: 2 mins read
A A

Even as humanity reeled under the devastating impact of Covid-19 and trade remained affected for over a year, India has earned a name as the “bread giver” to the entire world. It has exported rice to nearly 170 countries including China and Vietnam.

Kakinada port in Andhra Pradesh is playing the lead role in exporting rice to nearly 25 African countries and also China and Vietnam. Rice here is aplenty and many exporters are choosing this port for export.

Traditionally, the anchorage port of Kakinada enjoyed a reputation for handling rice exports to African countries and Bangladesh. But, this past year, many countries including Vietnam and China faced food shortage as agriculture operations were also badly hit in the aftermath of the Covid-19 pandemic’s arrival.

According to shipping trade sources, for the first time, Visakhapatnam and Kakinada deep water ports too started handling the rice cargo during the 2020-21 fiscal.

According to sources, the ports under the AP Maritime Board fetched Rs 280 crore as against the Rs 220 crore the previous year. Out of this, Rs 40 crore in revenue came from the anchorage port.

There were some slowdowns in cargo handling due to festivals and cyclones twice during October-November-2020, but there was heavy rice cargo outgo at the anchorage port. The state and central governments noticed the heavy demand and allowed exports from Kakinada deep water port too without it having any adverse impact on the anchorage port.

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The rice exports to destinations abroad are being handled from Visakhapatnam, Krishnapatnam, Chennai and Kandla ports this year.

The deep water port handled 1.79 lakh metric tonnes, the Visakhapatnam port 2 lakh tonnes and the Kandla Port 3 lakh tonnes so far. There was availability of large quantities of surplus rice in Telangana, Odisha and Chattishgarh as also in Andhra Pradesh, while there existed huge demand for rice in other countries.

Due to this reason, many traders have come forward to export rice and are purchasing it locally. Paddy is also being procured by exporters from Bihar and Madhya Pradesh.

“Due to the heavy rice exports from Kakinada, Krishnapatnam and Visakhapatnam ports, workers are getting more of employment and the trend will continue in future also,’’ said V Veera Raghavulu (Babu), president of the Cocanada Chamber of Commerce.

He said that though nearly 24 ships were stranded at the anchorage port while handling rice cargo, the central and state governments took initiative for easing the pressure of the port by allowing exports from Kakinada deep water port. Rice export is being handled at the anchorage port for up to 10 ships at a time.

When more ships line up, the remaining cargo will be handled at the deep water port. This is helping the exporters save the demurrage payment for the waiting ships. The customs and port departments also are favouring the trade by giving quick clearances.

Tags: Kakinada Port|Krishnapatnam Port|rice exports|Visakhapatnam Port
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The Maritime Gateway Editorial Team delivers trusted news, analysis, and insights on shipping, ports, logistics, supply chains, and global trade, backed by industry expertise and editorial review.

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