Strong Demand, Competitive Prices Helped India Boost Its Rice Exports By 3.5% In

1. Strong Demand, Competitive Prices Helped India Boost Its Rice Exports By 3.5% In 2022 0 Situated in Asia, India produces bumper quantities of rice. Owing to its fine quality and fragrance, Indian basmati rice always remains in high demand in the global market. The weather conditions in India offer a favorable environment for the cultivation of Rice. Besides that, the production of rice in the current Kharif Marketing Season 2022-23 is 355 LMT till 31 December 2022. The supply of wheat as well as other food grains are affected due to drought and the Russian invasion of Ukraine. Due to this, African and Asian countries have turned to India for their domestic rice needs. The prices of rice are also on the rise for the past couple of years, yet Indian rice is witnessing huge demand owing to its affordability as compared to its competitors Thailand and Vietnam. Increase In Indian Rice Export As per reports, a top Government official said, the export of Indian rice rose by 3.5% in 2022 from a year ago to 22.26 million tonnes, even more than the aggregate export of the next four target exporters (Thailand, Pakistan, Vietnam, and the United States). Last year, in September, owing to erratic monsoon in some rice-producing states in India, the Indian Government imposed a ban on the export of broken rice and a 20% duty on the export of all varieties of rice apart from parboiled rice to satisfy the domestic needs of the country.

2. Initially, the export of Indian rice declined due to the implementation of a 20% duty on rice but gradually in December, India managed to increase the rice export quota and shipped 2 million tonnes of rice. In 2022-23, despite Government restraint on overseas sales, the export of Indian rice climbed to a record high. According to government and industry officials, the importers are continuously demanding rice from South Asian countries due to competitive selling prices in the global market. Indian officials also informed that, in 2022, shipments of non-basmati rice stood at 17.6 million tonnes whereas the export of basmati rice was 4.4 million tonnes. Conclusion According to Nitin Gupta, the Vice President of Olam India’s rice business, due to the 20% export duty on non-basmati rice, the selling price shot up but importers soon returned back on purchasing rice from India as Thailand and Vietnam were exporting rice at even higher rates. He also added that Indian rice is the cheapest therefore, its demand and export will remain high in 2023. According to a rice dealer, India offers 25% of broken white rice at a price of $430 per tonne, Vietnam offers it at $440 per tonne whereas Thailand offers 25% of broken white rice at $500 per tonne. So, comparatively Indian rice is affordable. The President of the Rice Exporters Association of India, Mr. B.V. Krishna Rao, informed that in spite of the high export of rice, India has surplus domestic stocks. If you are an importer and are wishing to buy rice in bulk or an exporter willing to supply bulk quantities of different agro-commodities including rice, then Tradologie.com is the right platform for you. Tradologie has 600,000+ verified global buyers and 70,000+ verified suppliers of food and agro- commodities from 100+ countries and through the platform, you can connect and conduct agro-trade with the relevant ones with ease. To register as a buyer, click here. To register as a seller, click here. To stay updated with the recent happenings of the agro-trade industry, follow Tradologie.com across all social media channels.