Cereals Food Grains
India holds the second place in agriculture production in the world after China. Cereals like rice, wheat and maize forms the sustenance of rural India. They are rich in vitamins, minerals, carbohydrates, fats and proteins. India is the second largest producer of rice after China and 40% of Indian cereal production is rice.
Rice (including Basmati and Non Basmati) occupy the major share in India's total cereals exports. Basmati is long grain aromatic rice grown for many centuries is famous around the world. It is grown in in the states of J & K, Himachal Pradesh, Punjab, Haryana, Delhi, Uttarakhand and western Uttar Pradesh. Apart from Basmati rice, India also has around 10000 varieties of non-basmati rice and is the leading producer with exports around 71,00,000 metric ton
Basmati Rice which has under Value Added Tax (VAT) is now place under 5% bracket in new goods and services tax (GST). Earlier basmati rice was subject to value-added-tax (VAT) or was tax free in different states. This is likely to put the branded players in a disadvantageous position compared to the unbranded rice segment as it would further widen the pricing gap and may result in some transition of demand from branded to unbranded basmati rice.
Karnataka government is planning to set is planning to set up a Rice Technology Parl at Karatagi in Gangavathi of Koppal district. It has identified 315 acre of land. It is also planning to set up Maize Technology Park at Ranebennur which will come up in 60 acres of land. The government has planned to develop the two parks under the public-private partnership model. While the project cost for the Rice Technology Park is Rs. 128 crore, for the Maize Technology Park it is Rs. 111 crore.
The park will be the focal point of agro-based activity in the region catering to most parts of the Tungabhadra Command Area. Sona Masuri, which is a lightweight and aromatic variety of rice, is grown pre-dominantly in this area. This rice is exported to the US, UK, Middle-East, South East Asia and Austra