Contribution of Rice in virtual water trade within countries: lessons for agriculture policy

Abstract In the era of climate change, it is very relevant to focus on the trade of water in virtual form among the countries. Virtual water is the water used in the production of any product or service. Rice consumes approximately 2,497 litres of water (globally) for one kg of its production. Presently, India is the world’s biggest extractor of groundwater, more than the U.S. and China combined. This paper reviews the major countries involved in the global trade of virtual water through rice. The findings of the paper reveal that agricultural export policies of top Virtual Water Trading countries are not aligned with their water situation. Despite being a water-stressed country, India is the largest producer and exporter of water-intensive crops like rice. Thus, it becomes one of the largest virtual water traders too. There is a strong need to consider this virtual water trade while framing Agricultural policy to promote other less water-consuming crops and discourage virtual water export, especially for Global South.