8-Basmati Rice Exporters Could Flourish Due To Non-Basmati’s Export Ban Ind-Ra Report

1. Basmati Rice Exporters Could Flourish Due To Non Basmati Rice Exporters Could Flourish Due To Non- -Basmati’s Export Ban: Ind Ind- -Ra Report Ra Report Basmati’s Export Ban: With a view to stabilize prices of non-basmati white rice that was on a rise due to late but heavy monsoon rains in the Punjab and Haryana belt, the Government of India banned exports of the staple on 20th July 2023 and this has raised troubles both for the nations dependent upon India for their rice needs as well as the rice exporters of the country. While on one hand, the importing nations are finding it hard to source the staple amid sky high prices in the global rice market, on the other, the GOI’s decision has dampened business for domestic rice exporters of the country. However, according to India Ratings and Research (Ind-Ra), the Government of India’s decision has a silver lining. Ind-Ra believe, DGFT’s rice export ban notification is likely to result in better operating performance and aid the credit profile of basmati rice exporters of the country. India’s Significance In India’s Significance In The Global Rice Trade Located in Asia, India is the largest rice exporter of the world. It exports different varieties of rice to over 150 countries and with that commands a mammoth 40% share in the global rice trade. The Global Rice Trade Talking of the composition, non-basmati rice, comprise approximately 80% of the total rice export of the country and owing to this, India’s non-basmati rice export ban made headlines in several developed countries, causing panic buying in countries including the US, Canada and Australia. Rice Importing Countries Requesting for Early Shipments of Basmati Rice

2. Feared by non-basmati white rice export ban, buyers are now requesting rice exporters of the country to advance shipments of basmati rice. Normally buyers sign long-term contracts with rice exporters in india who assure them a certain volume of the commodity every month. However, now, buyers are fearful that GOI might in a surprise move restrict basmati rice exports as well, and hence are requesting advance shipments. India Ratings and Research (Ind-Ra) have commented that owing to early basmati rice shipment requests, prices of basmati rice might rice in the short and medium term. Commenting further, Ind-Ra have said that, to take advantage of the situation, many farmers have switched to producing basmati rice. It is because of this reason that Ind-Ra believe, Indian basmati rice exporters might enjoy a good business season. According to the latest report published by the India Ratings and Research, majority of Indian rice exporters primarily deal with basmati rice and the increasing demand and realization have positively influenced their operating performance during FY23. The Bottom Line The Bottom Line To sum it up, India’s non-basmati white rice export ban has fueled up demand for Indian basmati rice as global rice importers fear that the GOI might impose a ban on basmati rice exports as well. Owing to this, India Ratings and Research (Ind-Ra) believe that Indian basmati rice exporters might enjoy a good business season. If you are a Rice Exporter looking to export bulk rice or are a rice importer looking to import bulk rice, then Tradologie.com is the platform for you. Tradologie has over 600,000 verified buyers and 70,000+ verified suppliers in its network and through the platform, you can connect and conduct bulk trade of food and agro-commodities with ease. To register as a seller, click here. To register as a buyer, click here. To stay updated with the recent happenings of the agro-trade industry, do follow Tradologie across all social media channels.