India’s Rice Exports up 33%, Likely to Export 10 million Non-Basmati Rice this Year

Good domestic stocks of rice are helping India continue to grow rice exports despite payment delays from Iran. Non-basmati rice exports are expected to reach 10 million tonnes as total exports go up 33%.

Increase in Basmati and Non-Basmati Exports

REA’s president Rao stated that India would export around 10 million tonnes of non-basmati rice against last year’s 5.04 million tonnes. He explained that 10% less price (USD 380 a tonne) than rivals had lured countries into placing orders with India. On the other hand, basmati exports in the first half of this fiscal were 33%. India exported 27.44 lakh tonnes compared with 20.57 lakh tonnes of basmati during the year-ago period. Though per unit value realization has decreased, shipments have increased by 17% in rupee value.

Vijay Setia, the Former President of All India Rice Exporters Association (AIREA), explains that Iran’s concern overpayment remains. However, exporters have changed their strategies now. They are stocking up rice and selling it through distribution points. This is allowing them to continue basmati exports despite delays in payments. Iran alone accounts for 34% of the basmati shipment.

Executive director, All India Rice Exporters’ Association, Vinod Kaul, explained that India had become a reliable supplier for several countries. Because supply from India did not stop even amid the pandemic, it has successfully countered many countries’ food security concerns in West Africa.

Increasing Demand from China and Bangladesh

Ashwani Kumar Arora, MD of LT Foods, highlighted that China’s phytosanitary department had given clearance to some mills to export broken rice to the country. Besides, India has also received tenders for 300,000 tonnes of white and broken rice from Bangladesh, which will further push exports.

In all, rice exports from India are on the rise. However, container shortage and increasing freight rates can adversely affect growth.

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