News of

Market News

Indian white rice export prices gain on tight supplies.
Apr 28, 2023

Indian non-basmati white (raw) rice prices for exports have increased by over $25 a tonne during the past fortnight on tight domestic supplies and demand from markets abroad, traders and exporters said.

However, parboiled (boiled) rice prices have dropped by $5 a tonne and Indian white rice continues to be competitive by $20-30 over the nearest competitor in the global market. In the case of parboiled rice, the Indian cereal is at least $100 a tonne competitive.

'We are facing problems in getting white rice supplies in the domestic market as the Centre is procuring it for the central pool stocks. On the other hand, parboiled rice availability has increased, pulling down its prices,' said VR Vidya Sagar, Director, Bulk Logix.

New crop arrivals begin

'Though our prices have increased, we are still competitive in the global market. Arrivals of new rabi paddy crop have begun in Odisha, Telangana and Andhra Pradesh. Exporters are paying farmers prices closer to the minimum support price (MSP),' said BV Krishna Rao, President, The Rice Exporters Association (TREA).

The MSP for paddy this year is ?2,040 a quintal. India is quoting $453-57 a tonne for 5 per cent broken white rice against $432-36 two weeks ago. The 25 per cent broken white rice is offered at $438-442 compared with $417-22. India’s nearest competitor Vietnam is quoting at least $25 higher for both these varieties.

'There is good demand for 5 per cent broken white rice from Vietnam. We are getting enquiries from East Malaysia and Timor too,' said M Madan Prakash, President, Agricultural Commodities Exporters Association (ACEA).

'It is all down to demand-supply. The next crop in Thailand will arrive only in September. Vietnam may have to fulfill demand from China in case El Nino strikes and affects the Indian monsoon,' said a New Delhi-based trade analyst.

Enquiries from Africa

Sagar said parboiled rice was available even at $370 a tonne from India. 'Now that Ramzan is over, we expect some movement in rice to Africa and West Asia,' he said.

'This year, our exports are likely to match last year’s volume. We will be meeting all requirements,' said Rao.

'We are getting enquiries from Africa, while demand for South-East Asia is in small volume,' said Prakash.

The analyst said China has maintained silence over its stock situation. 'Vietnam and Thailand are expecting a bigger crop. There is no cause for worry with regard to India,' he said.

Data from Agricultural and Processed Food Products Development Authority (APEDA) show that non-basmati rice exports during the April-February period of 2022-23 fiscal were marginally higher at 16.09 million tonnes (mt) compared with 15.64 mt a year ago.

Export curbs

The rise was despite India imposing a 20 per cent export duty on non-basmati white rice from September and banning shipments of fully broken rice. The Government took these measures to curb exports as it feared rice production could be hit by deficient rain during the south-west monsoon.

Though kharif rice production dropped to 108 mt against 111 mt a year ago, overall production of the cereal has been estimated higher at a record high of 130.83 mt during the current crop year to June against 129.47 mt last crop year.

As regards rice, India’s central pool stocks are comfortable as the government has procured a good volume, said the analyst.

According to the Food Corporation of India, rice stocks as of April 1 were 24.86 mt compared with 32.32 mt a year ago. In addition, it has 27.64 mt of paddy (19.35 mt of rice).

'There might be a sharp uptrend in rice prices after June,' the analyst said.

thehindubusinessline.com

Trade Leads

Directory's

APEDA Agri Exchange

News & Analysis

Contact

Trade Leads

Directory's

APEDA Agri Exchange

News & Analysis

Follow Us

Contact