The decline in rice crop yields in Thailand and Vietnam and their elevated prices of manufacturing could develop into bonanza for India’s rice exports within the present fiscal 12 months, commerce sources stated. India is exporting rice at round $360 a tonne to key markets at current whereas Thailand and Vietnam are providing the grain at round $ 420 a tonne. The hole, in keeping with the sources, is anticipated to widen within the coming months. Besides, prospects of a fairly sturdy kharif crop may allow Indian exporters to fetch greater realisations. Even in quantity phrases, India’s rice exports within the present 12 months may match or barely exceed final 12 months’s file degree of 21 million tonne, in keeping with V Krishna Rao, president, All India Rice Exporters Association.
The prospects of one other file in rice shipments come at a time when the nation has imposed strict curbs on export of wheat resulting from depleting home shares.
According to the United States Department of Agriculture (USDA) rice outlook report launched in June, the worldwide rice commerce in 2022 calendar 12 months are projected at a file 54.3 mt. “India’s exports are projected to a record 22 mt and account for almost 41% of global shipments,” stated the report. The USDA additionally said that India’s projected rice exports are prone to exceed the mixed shipments of the subsequent three-largest exporters—Thailand, Vietnam, and Pakistan this 12 months.
Trade sources stated main rice producers resembling Vietnam, China and Thailand have been elevating the problem of excessive manufacturing and freight prices which might make their rice a lot costlier than what India affords. Exports in worth phrases this 12 months may very well be $10-12 billion, an all-time excessive.
India has been the world’s largest rice exporter within the final decade — export earnings stood at $ 8.8 billion in 2020-21 and $9.6 billion in 2021-22.
According to commerce ministry knowledge, India’s worth of rice exports rose by 12% to $ 2.6 billion within the first quarter of the present fiscal.
“We will sustain the momentum in rice exports in the current fiscal through shipment of quality rice,” M Angamuthu, Chairman, Agricultural and Processed Food Products Export Development Authority (APEDA) stated.
The Food Corporation of India (FCI) as of July 1, 2022, had rice shares of greater than 31.7 MT in opposition to the buffer norm of 13.54 mt. However, this inventory excludes 15 mt of rice but to be obtained from the millers by FCI.
An agriculture ministry official stated widespread monsoon rains particularly in the important thing rice rising states for the reason that starting of the month is anticipated to toughen rice manufacturing which is predominantly a kharif crop. The official stated rice sowing, which was lagging behind by greater than 22% final week in comparison with final 12 months, has picked up tempo and rice sowing will attain regular ranges quickly.
“India is in a position to cater to the world market in a big way and exports are expected to pick up pace after two months, currently earlier orders for shipments are being executed,” Vijay Setia, former president of All India Rice Exporters Association and an exporter, stated.
As per DGCIS knowledge, India exported rice to over 150 nations in 2021-22. “It indicates the diversification of India’s rice export over the years,” a commerce ministry official stated.
Out of 21 MT of rice cargo in FY22, India exported greater than 17 MT of non-basmati rice and the remainder of the quantity was fragrant and lengthy grain Basmati rice. In phrases of quantity, Bangladesh, China, Benin and Nepal are 5 main export locations of rice.
As per third advance estimates for 2021-22 crop 12 months (July-June), the rice manufacturing is estimated at a file 129.66 mt in opposition to the final 5 years’ common manufacturing of 116 mt.
Source: www.financialexpress.com”