Agriculture is the most significant sector of the Indian economy. Indian agriculture provides employment to 50% of the countries workforce. India is the largest producer of rice. It is considered the basic food crop; it flourishes comfortably in the hot and humid climate. Rice is grown in heavy rain region. “The huge dependence on rains and low irrigated lands causes this seasonality,” said Shashanka Bhide, Senior Fellow at National Council of Applied Economic Research, New Delhi.
India is a major producer and exporter of rice, a vital food grain. Economic development is done by emphasizing the development of the rice production. There are several rice suppliers in India who have a major role in development of Indian economy.
Rice consumption is the main commodity and has a big influence on the poverty line. Due to this, the poor fulfill their needs for survival. Spending the money on primary things such as food. It can be helpful to increase the Indian economy.
Fluctuations in the price of rice can impact on people purchasing and ultimately impact on poverty levels. The period of the rice harvest is the factor that plays a great role in price changes. If the supply of rice is increase then rice prices will be decreased. In short, the demand for rice in the form of the function of the prices is influenced by the level of the income.
There are some other factors which have a key role in economy of rice:
Weather and Temperature
Rice suppliers in India mainly focus on climate while grow rice crop. As the crops are affected by the weather during the growing season. If the season is too wet, too dry, or too cold, or too hot, crops cannot thrive. A scarcity of a crop may increase the cost. On the other side, if the weather is according to the crop then yielding will be good.
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Pests and Disease
Like the weather, factors such as pest damage and disease can destroy a crop or affect livestock production.
Transportation Costs
When the price of oil and gas is higher, it costs more to transport food through the steps from farm to plate (e.g. to a processing facility, to the store). This can impact the price of rice food.
Labor Costs
To some extent labor cost also affect the rice prices. The main requirements such as farmers, packers, processors, retailers, etc are highly impact on the prices.
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The above discussions clearly show how rice is important food grain for the Indian economy and what factors influence the Indian economy. The more information provided by Rice suppliers in India will be helpful for you.
