Rice exports surge on strong demand & declining stocks in Thailand

Posted by Daily Shipping Times on 22-02-2018        Tweet

For the first nine months of the current fiscal, the non-basmati exports have registered a growth of 40 per cent in volumes at 63.38 lakh tonnes

BANGALORE: Strong demand from neighbours Bangladesh and Sri Lanka, and steady off-take from traditional buyers in Africa has led to a surge in the Country’s non-basmati rice exports, which are likely to rise to new highs this financial year.

Besides, the depleted stock levels in Thailand — a major exporter — has helped India gain and consolidate its share in the global market, trade sources said.

Shipments soar 40%

For the first nine months of the current fiscal, the non-basmati exports have registered a growth of 40 per cent in volumes at 63.38 lakh tonnes (lt) and 46 per cent increase in value terms at Rs. 16,803 crore over corresponding period last year.

Non-basmati rice shipments, after reaching a record 82.74 lt in 2014-15, had dropped in the subsequent year to around 64.64 lt. However, over the past couple of years, the Indian shipments have staged a rebound. Steady growth in domestic output of over 100 million tonnes annually, has resulted in a surplus aiding the shipment trend since 2011-12, when the exports curbs were removed.

Bangladesh buying

Bangladesh, which bought aggressively during April-October period, has slowed down a bit in the past three months with the arrival of domestic crop. Rao estimates that Bangladesh could have bought up to 2 million tonnes of rice, while close to a million tonnes would have been purchased by Sri Lanka, while demand has been steady from African nations.

Basmati exports for April-December stood at 2.9 million tonnes valued at $2.9 billion or Rs. 18,758 crore.