It is good news for Indian exporters. China has started importing Rice from India for the first time in at least 30 years. This development is observed time when political disputes are rife between the two countries. The tension is mainly because of ongoing border dispute in the Himalayas. Indian offers in the exports market are fairly cheap while inventories are tightening in China. As such Chinese traders find it a viable alternative to import rice from India. India leads in global Rice export market while China is the biggest importer in the world. As per industry sources Indian exporters have contracted deals worth One Lakh tonnes of broken rice for Dec-February shipments, with average sell offers around $300 per tonne.
According to B.V. Krishna Rao, president of the Rice Exporters Association, India's rice exports could jump to 14 million tonnes in 2020, up from last year's 9.9 million tonnes. Also, chances of exports of rice in 2020 may rise by more than 40% year on year in line with reduced shipments from India’s competitors’ and depreciating rupee. Under this situation exports will be at record high for the nation. Exporters’ views indicate China may continue purchasing Indian rice next year as well due to tight supply situation in their country in addition to better quality of the Indian crop, versus last year.
Another factor that could support the possibility of China’s imports to remain higher for Indian origin rice is that its conventional exporters like Myanmar, Pakistan, Thailand, and Vietnam have limited production surplus this time, and their quotes are expensive by nearly $25-30 per tonne as against Indian offers.
