The surging coronavirus cases and the dreadful floods led to a shortage of supply and in turn, increase the export demand for rice. Thus, the current scenario rises the price of Non- basmati parboiled rice in India.
The pandemic outbreak and floods hindered supply and transportation in the country. Ensuring that Indian rice export prices increased. Accordingly, the prices for 5% broken Indian parboiled rice increased to $383-$389 per tonne from $382-$387 last week. On the other hand, prices for Vietnam’s 5% broken rice remained unchanged while Thailand saw an increase in prices for the same.
Indian Exports Hindered
The Kakinada district in Andhra Pradesh is the largest rice shipping port in India. Following the recent events, they are facing labour issues as well as the limited availability of containers. The President of the Rice Exporters’ Association, B.V Krishna Rao worries that the vessel loading rate went done by 30% in Kakinada. Despite the problematic situation, the demand for Indian rice remains high. However, the exports are getting affected due to surging cases and floods in Andhra Pradesh, according to Nitin Gupta, VP of Olam India’s rice business.
Andhra Pradesh alone is not facing the problem. Ashwin Shah, an exporter based in Nagaland, also conveys that they faced similar logistical issues. Nevertheless, as the demand for Indian rice is good due to prices, the industry is optimistic that things will look up again shortly.
Bangladesh Floods Affect Export Flow
India isn’t the only country facing export issues in these challenging times. The neighbouring country of Bangladesh was also affected by heavy floods. Due to this, 50,000 hectares of paddy fields submerged reports Bangaladesh agricultural ministry. Further, the value of the damaged rice crops came up to $4.29 billion on around 100,000 hectares, said Abdur Razzaque, the agricultural minister. Thus, Bangladesh is facing the same plight in export.
Jump in Exports of Non-Basmati Rice
India’s exports of non-basmati rice varieties increased massively. In the first two months of the FY21, the exports were 11.3 lakh tonnes- 52.5% more than the previous year.
Africa is the major importer of this variety and, now Bangladesh is looking to import the same from India as well. Mr BV Krishna Rao also said that Africa depends on India for its rice demand as prices for the Thai variety have shot up. Further, he also believes that the exports will touch FY18 levels which were around 8.64 million tonnes. Bangladesh is looking to import rice because of sluggish procurement rates and the surge in demand for rice.
In conclusion, there is a good chance for India to export a good quantity of non-basmati varieties this year. But, we’ll have to wait for the Bangladesh government’s official announcement that is expected to arrive shortly.