Rice exports from India, the world's second-largest grower, may decline this year from a record as buyers turn to cheaper supplies from Vietnam and Pakistan, according to a traders group.
Shipments may fall 6% to 9.5 million metric tonnes in the year that started in April from 10.1 million tonnes a year earlier, said Vijay Setia, a former president and member of the All India Rice Exporters Association. Exports of non-basmati rice are estimated to drop 15% to 5.5 million tons, while overseas sales of aromatic basmati variety are set to jump 14% to 4 million tons, he said.
India's government raised the minimum price it pays to growers to a record last year, making supplies from the country more expensive amid a global glut. Thailand's plan to sell grain from state stockpiles may further depress prices, which are set for a second quarterly advance, said B.V. Krishna Rao, managing director of Pattabhi Agro Foods Pvt, an exporter.
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