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Non-basmati rice exporters see huge demand as prices increase in Vietnam and Thailand
KOLKATA: Indian exporters of non-basmati rice have seen a surge in orders after the value of the grain elevated in Vietnam and Thailand. Indian rice is now cheaper than the Southeast Asian varieties by nearly $100 per tonne.
“Export demand for non-basmati rice stays sturdy as a consequence of worth rise in Vietnam and Thailand. Their rice is commanding a worth of $490-500 per tonne, whereas our worth is round $400 per tonne. Indian prices have gone up by 3-5% as the rupee has depreciated in opposition to the greenback,” BV Krishna Rao, president of Rice Exporters Affiliation, advised ET.
Within the first 4 months of FY21, non-basmati rice exports from India had been up by 35% in contrast with the identical interval of FY20, mentioned Rao. Complete exports in the primary month had been round 3.5 million tonnes. India provides rice to 170 nations in the world.
Provides to international markets from Vietnam have ebbed after native merchants elevated their purchases not too long ago and the summer-autumn harvest ended. The rising depend of Covid-19 in Vietnam has led to some hoarding of rice. Vietnamese rice prices are anticipated to remain elevated for the following few months till a brand new harvest in October.
Provide considerations have additionally pushed Thailand’s benchmark 5% damaged rice prices as much as $480-$500 per tonne.
Yearly, 40-45 million tonnes of rice are traded globally. Of this, India accounts for 11 million tonnes. Out of 11 million tonnes, 4.Four million tonnes is basmati rice.
Pakistan, Myanmar, India, Thailand and Vietnam are the most important suppliers of rice to the world markets.
“September and October shall be two main months for Indian exporters as crops in Vietnam and Thailand will solely begin arriving from the top of October,” Rao mentioned.
Non-basmati rice merchants are optimistic that exports will contact FY18 ranges, when the nation had exported 8.64 million tones of grains. Exports of non-basmati rice subsequently went down in the following two years and in FY20 India exported 5.04 million tones of the commodity.
This drop in non-basmati rice exports was as a result of the federal government elevated the minimal assist worth of paddy and farmers weren’t in exports. Additionally, the federal government had procured huge portions of rice, which additionally impacted its exports.
Nonetheless, regardless of the rise in export demand, exporters are going through issues as there may be scarcity of containers to ship the rice. Kakinada is the largest non-basmati port in the nation. Rao mentioned that since import from China has come down, arrival of containers have additionally slowed down. “Due to this fact, getting containers for exports is a serious problem to the trade,” he mentioned.