• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

M.R. Subramani

African buyers, however, cautious not to over-build

Chennai , June 7

Exporters have signed contracts to ship at least 1.75 lakh tonnes of white rice, especially to West Africa, while four lakh tonnes of par-boiled rice have also been contracted for exports so far this year.

"With Pakistan's stocks getting over and prices rising, buyers abroad are turning to India as prices here are competitive at present," said an official with an export firm. He did not wish to be identified.

Buyers' fears

These consignments have been contracted for shipments up to the end of this month. Buyers are cautious in signing contracts for July, fearing that last year's experience might re-visit them. Last year, buyers had bought huge stocks by May and by the time some of the shipments arrived at the destinations, the prices began to decline.

"This time the buyers are cautious and do not want to be caught in an overbought situation," the official said. Also, some of the ships had to be kept waiting to download the consignments last year.

Current quotes

Currently, Indian white rice is quoted at $225-30 a tonne f.o.b for 25 per cent broken from southern ports. In contrast, Pakistan is quoting around $235. Other competing destinations such as Thailand and Vietnam are witnessing sharp rise in prices. Vietnam is quoting $245 for 25 per cent broken, while in the case of Thailand, it is upwards of $265.

Besides the fact that Indian prices are competitive, freight charges are also proving to be an advantage.

"With crude prices rising, it makes sense for buyers from West Asia and Africa to buy from India," he said.

A major reason for Indian rice to be competitive is a good crop this season.

"We have had good harvest in both kharif and rabi seasons, particularly in Andhra Pradesh," the official said.

Production

Total rice production for 2005-06 (July-June) has been estimated at 87.86 million tonnes against 85.31 million tonnes a year ago.

"We have had good quantity of rice to export after meeting the obligation of having to deliver for the public distribution system," he said.

As regards par-boiled, only India and Thailand compete for the African market.

Parboiled sortexed is offered at $310-12 a tonne by Thailand, while India is quoting it at a little above $300 a tonne f.o.b.

"In the parboiled rice segment, we definitely enjoy the freight advantage," trade sources said.

High Demand

A reason for global rice prices to rule higher currently is the demand from countries such as the Philippines, Iran and Iraq. "Vietnam is concentrating more on the opportunities in the Philippines and has been successfully bagging tenders there.

A domestic price support programme is holding up Thailand prices. It is also bidding for Iraq and Iran tenders," the sources said.

During April-February last fiscal, 36.82 lakh tonnes of rice, valued at Rs 3,852 crore, were exported compared with 29.92 lakh tonnes worth Rs 3,294 crore a year ago.

More Stories on : Rice | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rice exports gather pace as Pak runs out of stocks

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line