Europe and Egypt like to buy Indian rice for their growing demand
According to reports from Cairo, Egypt’s General Authority for Supply Commodities (GASC) issued a global tender to import 25,000 tonnes of white rice, with three of the four bidders offering Indian rice.
‘European countries have emerged as new buyers of Indian parboiled rice. ‘We’re getting inquiries from places like France,’ said VR Vidya Sagar, Director of Bulk Logix.
Disregarding the export tax
Even though its offer prices haven’t changed and Thailand’s prices have gone down by more than $40 per tonne in the last month, demand for Indian rice is still high. Even though the Indian government puts a 20% tax on shipments of white rice, exports are still strong.
‘Demand for Indian rice is re-emerging after a three-month dip,’ says a trader. ‘Both white (raw) and parboiled (boiled) rice are in demand,’ stated BV Krishna Rao, President of the Rice Exporters Association of India (TREA).
‘The Indian kharif rice crop is excellent. This year, the Food Corporation of India (FCI) expects to meet its procurement target. ‘Our non-basmati rice exports should easily exceed 18 million tonnes (mt) this year,’ said New Delhi-based exporter Rajesh Paharia Jain.
Thailand gains Pak
Despite the Indian government imposing a levy on white rice exports and prohibiting shipments of entirely broken rice, rice exports, including Basmati, were anticipated to exceed 21.9 million tonnes in 2022.
Pakistan and Thailand, whose exports increased by 22% in 2022 to 7.69 million tonnes from 6.3 million tonnes in 2021, benefited from Indian restrictions on rice shipments imposed on September 8.
Islamabad benefited more from shipping rice to China, particularly broken rice. Despite the increase in shipments, the Thai Rice Exporters Association set an export target of 7.5 million tonnes for 2023 earlier this week.
The Ministry of Agriculture reported rice output at a record high of 130.83 mt last week, despite kharif production being anticipated to be roughly 3 mt lower. In contrast, the Food Corporation of India has acquired 47 million tonnes of wheat, compared to the government’s aim of 52.1 million tonnes.
‘Rice prices have stabilized of late, but there could be a further rise in costs as there is a supply deficit. Prices have currently stabilized as Thailand’s fresh crop has hit the market and reduced prices,’ said a trade expert based in New Delhi.
Even though Thailand cut prices by more than 10% in the last month, Jain says that Indian rice is still competitive.
‘We will still be the number 1 exporter notwithstanding limits on shipping. ‘We are seeing demand from African countries, but there is less movement of white rice,’ said Sagar.
‘The Centre also benefits from exports because it receives duty on shipments,’ Rao said, adding that despite price cuts, Thailand did not pose an issue for Indian rice.
According to M Madan Prakash, President of the Agri Commodities Exporters Association, supplies to ports was delayed, particularly on the western coast. ‘There are Customs concerns with sending feed quality,’ he explained.
Thailand, according to Rao, is willing to decrease its parboiled rice price to $460, whereas Indian parboiled is quoted at $390-410 per tonne.
According to the Agriculture and Processed Food Products Export Development Authority, non-basmati exports were 13.17 million tonnes valued at $4.66 billion in the first nine months of the current fiscal year, up from 12.59 million tonnes valued at $4.51 billion the previous year.
Rice prices have gone up around the world because harvest estimates in India, Pakistan, China, and Bangladesh have gone down. On the other hand, Indonesia and the Philippines have started to buy a lot of it from the market.