The Hindu Business Line : After H1 bull run, rice exports may slacken

AFTER witnessing a boom in the first half of the current fiscal, rice (non-basmati) exports have begun to taper off on holidays and decline in prices of other origins.

"India got an opportunity to export parboiled rice in the first half as prices from Thailand were higher and Vietnam was inconsistent in its offerings," an official with ITC Agro Tech told Business Line.

Exports headed to Africa with Nigeria being the main buyer. "Our prices were cheaper by $30-40 per tonne than offers from Thailand in the first half," the trader said.

"Indian rice prices were competitive during the first half, but we are not sure how long this trend will last," said Mr D.P. Singh, President, Grain Exporters Association. "Overall, global shortage helped us export, but the demand is petering out," he said.

Global rice production this year has been projected 1.5 per cent up at 614 million tonnes (mt), but the carryover stock this year has been less by six mt compared with last year at 97 mt.

Export figures put out by the Agricultural and Processed Food Products' Export Development Authority show that 18.29 lakh tonnes of non-basmati rice were exported between April and August this year against 7.57 lakh tonnes during the corresponding period a year ago.

In terms of value, the shipments fetched Rs 1,918 crore during the period against Rs 814 crore last year.

"Our offerings were made at $250-5 per tonne to Nigeria and South Africa," the official said.

Somalia, Djibouti and Senegal are other countries that buy Indian parboiled rice. "But things are likely to be pretty difficult from now on," he said.

One reason is that most of the buyers have bought the quantity required for them. "Also, international buying has halted in view of the year-end holidays ahead. Trade is likely to be minimum or virtually nil until New Year," the official said.

On the other hand, Thailand has cut its prices for the rice making things tougher for Indian exporters. The exporters have made all the shipments without any subsidy from the Centre. "Subsidy for exports is just out of question," a trade source said.

Chances for export of white rice are, however, bleak. "Prices of Pakistan white rice are cheaper than Indian offers," the ITC official said. "A clear picture of the global rice market will be available only after December," he said.

On Tuesday, five per cent broken parboiled was quoted at $276 per tonne f.o.b, while from Vietnam it was quoted at $263.

White rice from India was quoted at $236 for 25 per cent broken, while offers from Thailand were at $249. Vietnam's 25 per cent broken quoted at $240 and Pakistan's at $217.

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