India’s Rice Exports Likely to Continue Dominating the Global Market

India is one of the top producers and exporters of Rice and is likely to continue its dominance in global rice market this year also. The exports of non basmati rice will most probably exceed last year’s record of 13.08 million tons or at least remain around that level, according to trade and industry experts. The demand for non basmati rice was high last year as more countries purchased the cereal admist supply issues and covid pandemic to ensure food supplies. Basmati Rice exports also touched 4.62 million tons, valued at $4 billion. Totally, the rice Exports fetched Rs 65,297 crore in 2020-21. 

Experts concerns: 

Experts fear that exports could be affected this year since panic purchases over covid pandemic by some countries will be missing in this fiscal. 

B V Krishna Rao, President, Rice Exporters Association (REA) said that exporters also have concerns that the exports might slowdown due to high freight costs from African buyers. The break- bulk vessels charge Rs 6,750- 7,500 per ton to African destinations while the containers cost Rs 9,350-10,100 per ton. These charges have doubled compared to the pre-covid times but India will still remain competitive in terms of pricing as compared to the other countries. 

It is important to note that the exports for this year have begun in a small way; the exports of Basmati Rice in April were 15% lower and trend continued in May. However, the exports to Africa and Bangladesh continue to be good. Bangladesh is giving out tenders every month to import 50,000 tons and Indian firms are getting these as their bids are the lowest. Saudi Arabia, Iran, Iraq and UAE are another major importers of Rice from India. 

According to Rao, Rice prices in Vietnam and Pakistan have softened but India still remains the cheapest supplier in the world. 

Rice prices around the world: 

The price trends show that India will be the first choice of many countries for importing rice because of the low prices and offer rates.