Home
|
Sitemap
|
FAQs
|
Contact Us
Product
Country
Menu
About Agri Exchange
Introduction
Apeda Agri Exchange
The Vision
Benefits / Facilities
To Exporters
To Buyers
Product Profile
Floriculture
Floriculture
Fruits & Vegetables Seeds
Fresh fruits & Vegetables
Fresh Onion
Other Fresh Vegetables
Walnuts
Fresh Mangoes
Fresh Grapes
Other Fresh Fruits
Others (Betel Leaves & Nuts)
Processed Fruits & Vegetables
Cucumber and Gherkins (Prepd. & Presvd.)
Processed Vegetables
Mango Pulp
Processed Fruits,Juices & Nuts
Pulses
Animal Products
Buffalo Meat
Sheep/ Goat Meat
Other Meat
Processed Meat
Animal Casing
Poultry Products
Dairy Products
Natural Honey
Caseins
Albumin (Eggs & Milk)
Other Processed Foods
Groundnuts
Guar Gum
Jaggery & confectionery
Cocoa Products
Cereal Preparation
Milled Products
Alcoholic Beverages
Miscellaneous Preperations
Cereals
Basmati Rice
Non Basmati Rice
Wheat
Maize
Other Cereals
Country Profile
United Arab Emirates
Saudi Arabia
Malaysia
Bangladesh
United States
Vietnam
Kuwait
Iran
United Kingdom
Indonesia
...View more country profiles
FTA's
Analytical Report on FTAs
Tariff Concession under FTAs
Statistics
International Trade
India's Export
India's Import
Production
International Production
India Production
Market Intelligence
e-Bulletin
Global Analytical Report
India's Export Analytical Report
Comparative Report On APEDA Products
Comparative Report On Principal Commodities
Import Tariffs
Import Regulations
SPS Notifications
DGFT : Public Notice, Notifications, Circular and Trade Notice
India Food Safety & Standards
Market Reports
Foreign Trade Policy 2023
Chapter 01 - Legal Framework and Trade Facilitation
Chapter 02 - General Provisions Regarding Imports and Exports
Chapter 03 - Developing Districts as Export Hubs
Chapter 04 - Duty Exemption Remission Schemes
Chapter 05 - Export Promotion Capital Goods (EPCG) Scheme
Chapter 06 - Export Oriented Units (EOUs), Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-Technology Parks (BTPs)
Chapter 07 - Deemed Exports
Chapter 08 - Quality Complaints and Trade Disputes
Chapter 09 - Promoting Cross Border Trade in Digital Economy
Chapter 10 - Scomet: Special Chemicals, Organisms, Materials, Equipment and Technologies
Chapter 11 - Definitions
Newsletters
Latest News
Latest Newsletter
Archives
Directory
Exporters
Service Providers
Logistics
Trade Leads
Submit New lead
Buy Leads
Sell Leads
Indian Mission Login
Market News
Panicked traders step up forward Indian rice purchases after wheat export ban.
Jun 07, 2022
MUMBAI, June 6 (Reuters) - India's surprise ban on wheat exports has prompted rice traders to increase purchases and place unusual orders for longer-dated deliveries, fearing the world's top rice exporter may restrict those shipments as well, four exporters told Reuters.
In the last two weeks, traders have signed contracts to export 1 million tonnes of rice for shipments from June through September and are opening letters of credit (LCs) quickly after signing deals to ensure the contracted quantity will be sent even if India restricts exports, the people said.
Those forward purchases come on top of roughly 9.6 million tonnes of rice already shipped out of India this year - in line with record 2021 shipments - and may reduce the amount of grain available for other buyers during the coming months as loading schedules fill.
'International traders pre-booked for the next three to four months and everybody opened LCs to ensure business continuity,' said Himanshu Agarwal, executive director at Satyam Balajee, India's biggest rice exporter.
Normally traders sign deals for the current and next month.
Aggressive purchases from India could also reduce demand for rice from Vietnam and Thailand, the world's second and third-biggest exporters respectively, which are struggling to compete on price.
WHEAT BAN
India last month banned wheat exports in a surprise move, days after saying it was targeting record shipments this year. It also put a cap on sugar exports.
India is not a top global wheat exporter, but it is the world's second-biggest sugar exporter behind Brazil.
Those export curbs led to speculation that India could also cap rice shipments, though government officials said India does not plan to because it has sufficient rice stocks and local prices are lower than state-set support prices.
India's wheat ban trapped a large quantity of the grain at ports because New Delhi only allowed contracts backed by LCs to depart.
'Normally people open LCs while they nominate a vessel. This time they opened LCs for all rice contracts that were pending, so in case there is a ban on exports, at least the contracted quantity is shipped out,' Agarwal said.
India accounts for more than 40% of global rice trade.
PRICE ADVANTAGE
Overseas buyers are looking for Indian rice because it is far cheaper than rivals, said B.V. Krishna Rao, president of the All India Rice Exporters Association.
Indian 5% broken white rice is offered between $330 to $340 per tonne on a free-on-board (FOB) basis, significantly lower than Thailand's $455 to $460 a tonne and Vietnam's $420 to $425, dealers said.
Thailand and Vietnam are not able to compete with India and they are trying to explore ways to support prices, Thailand's government has said.
If India restricts exports, global prices could jump sharply, said a New-Delhi-based dealer with a global trading house.
'Indian rice is more than 30% cheaper than other destinations. Poor buyers in Asia and Africa would be forced to pay very high prices if India restricts exports. That's why there is a rush to buy Indian rice,' the dealer said.
Bangladesh, China, Benin, Cameroon, Nepal, Senegal and Togo are key buyers of India's non-basmati rice, while Iran and Saudi Arabia are key buyers of premium basmati rice.
India exported a record 21.5 million tonnes of rice in 2021, compared with combined exports of 12.4 million tonnes by Vietnam and Thailand.
Panic buying by importing countries was expected after the rumours of the ban began circulating because no other country can replace Indian shipments, said a Mumbai-based dealer with a global trading firm.
reuters.com
Archive