India's rice exports set to ease as Govt raises buying price

Posted by Daily Shipping Times on 12-07-2018        Tweet

MUMBAI: India's rice exports are set to ease from October as the world's biggest shipper of the grain boosts guaranteed prices that farmers receive for much of their crop, making new season cargoes expensive compared to supply from rival growers.

Lower exports would mean that India loses market share in key Asian and African markets, traders and industry sources said, with exports from countries such as Thailand, Vietnam and Myanmar likely to fill any gaps. "With this price rise, our exports will become expensive," said B V Krishna Rao, President of the Rice Exporters Association (REA).

"The customer base that we have created over a period of time is going to shift to Thailand and Vietnam." India's rice exports in the 2017/18 fiscal year that ended on March 31 surged 18 percent from the year before to a record 12.7 million tonnes on strong demand from Bangladesh and Sri Lanka.