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M.R. Subramani

Curbs imposed on exports by Vietnam may help India

Chennai , Dec. 20

With the global rice market going through its traditional lull period, exports from the country are expected to pick up after the second week of January, according to trade sources. Indian rice exports could also stand to gain from the curbs imposed on exports by Vietnam but it could happen only in the medium-term.

"Apart from the fact that year-end is a time for buyers to keep a low profile, millers in Andhra Pradesh are also more keen to meet their levy obligation for supply to the public distribution system now.

The millers have decided to concentrate on exports only after January 15," the sources said.

`Wait and watch'

Rice millers in Andhra Pradesh are obliged to supply 60 lakh tonnes, but so far only six lakh tonnes have been procured by the State Government.

Also, Pakistan is still quoting $10-12 a tonne lower for white rice in the export market.

"Pakistan is expected to have stocks until February and until that Indian exporters will have to wait and watch. Pakistan could export anywhere between one to two million tonnes," the sources said.

"Also, for destinations such as West Asia and Africa, freight charges are lower from Pakistan's ports of Qasim and Karachi. That apart, Indian ports are congested," they said.

However, on Wednesday, Pakistan white rice 25 per cent broken was quoted at $240-242 a tonne, whereas 25 per cent broken PR-106 white rice was quoted at $236 by India. Thailand and Vietnam quoted $272 and $255, respectively.

Global shortage

With the global market facing shortage of grains, rice prices could be headed for further rise next year.

"The market conditions will definitely favour an increase in prices," they said. Asked about the ban imposed by Vietnam on exports and if India could gain, the sources said: "We will gain but not in the short-term. It is likely to happen in the medium- to long-term."

Also, buyers, these days, do not want to depend on a single source to meet their requirements.

"They don't want a situation where they have to depend on a particular destination.

"They also want to have their options open by not concentrating on a single country.

"This is also giving a chance for Indian rice exports," they said.

Despite, the Centre projecting a lower rice production of 76 million tonnes (mt) during the kharif season against 78.04 mt million tonnes last year, the trade sees no problem in its availability for exports.

During the current rabi season, rice coverage is up at 5.12 lakh hectares against 4.09 lakh hectares during the corresponding period last year.

On the other hand, parboiled exports are continuing without any problems.

`Good demand'

"We are still competitive in the parboiled sector as Thailand is the only other competitor."

Indian parboiled rice 5 per cent broken was quoted at $270 a tonne, while Thailand's 100 per cent sortexted parboiled ruled at $302.

During April-July, rice exports totalled 9.73 lakh tonnes, valued at Rs 1,036.91 crore, against 9.42 lakh tonnes, valued at Rs 1,014.78 crore, during the same period a year ago.

The trade is hopeful of shipping at least 30 lakh tonnes this fiscal.

To queries on the European Union finding traces of genetically modified organisms in rice consignments from the US and gains flowing to countries such as India due to it, the sources said: "It is still a situation of wait and watch. Nothing has really flown in as benefit, though we continue to enjoy a good demand for our brown basmati."

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Rice exports to pick up in second week of Jan

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