1. Commodity News

China Imports 100,000 tonnes Indian Rice for first time in 3 Decades

Pronami Chetia
Pronami Chetia
Indian Rice Imports
Indian Rice Imports

China, world's largest exporter of rice has recently started importing Indian rice for the first time in at least three decades amid the period of the corona crisis. Moreover the development comes as a result of tightening supplies and an offer from India of sharply discounted prices, Indian industry officials told Reuters.

Moreover, it's great news for Indian commodities and farmers which can lift Indian agriculture in a big way. India is the world's biggest exporter of rice while China is the biggest importer. Beijing imports around 4 million tonnes of rice annually but has avoided purchases from India, citing quality issues.

Amid the seven-month-long standoff between India and China along the Line of Actual Control (LAC) in Ladakh, China has started importing rice from the Indian market.

"For the first time, China has made rice purchases. They may increase buying next year after seeing the quality of Indian crop," said B.V. Krishna Rao, president of the Rice Exporters Association.

The traders have contracted to export 100,000 tonnes of broken rice for Dec-February shipments at around $300 per tonne, industry officials said.

The breakthrough comes at a time when political tensions between the two countries are high because of a border dispute in the Himalayas. China's traditional suppliers, such as Thailand, Vietnam, Myanmar, and Pakistan, have limited surplus supplies for export and were quoting at least $30 per tonne more compared with Indian prices, according to Indian rice trade officials.

Although market access was given in 2006, China imported about 974 tonnes of non-basmati rice in 2017-18 fiscal. Now after a gap of two years, we have started receiving inquiries…,” AIREA Executive Director Vinod Kaul told PTI.

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