Rice exports from India may fall
- Published: 28/06/2013 at 04:52 PM
- Online news:
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.
``The government support mechanism is so strong in India that its difficult to match Vietnam and Pakistan,'' Mr Rao said by phone from Kakinada in Andhra Pradesh. ``With the rupee falling to a record low, exporters have been forced to cut prices and non-basmati shipments may slump to as low as 4 million tonnes should Thailand cut its export prices,'' he said.
The price of Indian parboiled rice, which accounts about 50% of the non-basmati exports, has been cut to US$415 a tonne from $435 a month earlier to cope with increasing competition, Rao said. Vietnam is offering 5% broken white rice at $370 a tonne, while the Indian variety costs $440, he said. Thailand's rice is at least $50 more than India, he said. India exports mainly to the Middle East and Africa.
About the author