Financial Daily from THE HINDU group of publications
Monday, Feb 13, 2006
Financial Daily from THE HINDU group of publications Monday, Feb 13, 2006 |
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Agri-Biz & Commodities
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Rice Industry & Economy - Exports & Imports Pak out-prices India in white rice exports — But par-boiled still holds promise M.R. Subramani
Chennai , Feb. 12 INDIA continues to be competitive in the global par-boiled rice market but it has been out-priced, mainly by Pakistan, in the white rice segment. "We are not yet competitive in the white rice segment. Thailand is continuing to export but Pakistan is selling it at a significantly lower price," trade sources said. Competition in the white rice segment is high in view of Thailand and Vietnam being aggressive in the market. Vietnam last week bagged significant orders to export 4 lakh tonnes (lt) white rice to the Philippines. "There has been a sudden decline in the white rice prices from Pakistan," the sources said. The main reason for the fall has been exporters could supply shipments due to vessel shortage. "Now the vessels have come and loading is taking place. But since Pakistan does not have adequate storage facilities, they have to sell quickly. Once, the vessels move out and stocks at the ports come down, the prices could rise," they said. Currently, Pakistan's 25 per cent broken variety is quoted at $215 a tonne against $236 quoted by India for the same grade. Thailand and Vietnam quotes are even higher at $268 and $250 respectively. In Thailand, the problem is tight domestic supply. Prices in Vietnam and Thailand are expected to decline once the arrival of the new crop begins later this month. "Pakistan's stocks are expected to get over by April. We expect then to export seven lakh tonnes. They have shipped out two lakh tonnes till now. Once the expected stocks are exported, we will have to look for a chance to net buyers," the sources said. On the other hand, with only Thailand being the competitor in the par-boiled rice category, India has been able to garner demands from African nations such as South Africa, East Africa and Nigeria. Currently, Indian parboiled rice is quoted around $250 levels f.o.b against $295 by Thailand. According to the sources, arrivals of kharif rice have been normal. "Prospects for rabi rice has improved with good rains in major growing areas, especially in South India. We expect the Centre to buy aggressively for the buffer stocks this year. However, there should be enough quantity to export and we do not anticipate any supply problem," the sources said. During the current rabi sowing, rice acreage has increased to 20.81 lakh hectares against 17.36 lakh hectares during the corresponding period a year ago. Also from the kharif crop, the Centre has procured 172.33 lt of rice during October-January compared with 155.91 lt a year ago. Kharif rice output this season has been estimated to be 73.83 million tonnes (mt) against 71.67 mt last season. Total rice production last year was estimated to be 87.40 mt. According to the Agricultural and Processed Foods Products Export Development Authority, rice exports during April-November of the current fiscal were 28.3 lt valued at Rs 2,962 crore against 15.28 lt worth Rs 1,660 crore during the year-ago period. The All-India Rice Exporters' Association Executive Secretary, Brig Anil Adalakha, told a grains summit in Mumbai on Saturday that total rice exports, including basmati, was likely to top 50 lakh tonnes this fiscal. Basmati exports this fiscal are a tad lower at 6.46 lt valued at Rs 1,774 crore during April-November (6.98 lt worth Rs 1,663 crore).
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