Friday, Apr 20, 2007
Non-basmati rice exports may touch 40 lakh tonnes http://www.thehindubusinessline.com/2007/04/20/stories/2007042001981200.htm
M.R. Subramani
Chennai April 19 Non-basmati rice exports from the country are likely to be around 40 lakh tonnes during the current season ending September. "Exports for the season, which began in October, could have easily touched 36 lakh tonnes by March-end and touching 40 lakh tonnes should be no problem," according to trade sources.
The hopes are against shipments of 39 lakh tonnes last season and if one were to add basmati exports, then total exports could be around 50 lakh tonnes.
According to the All-India Rice Exporters Association (AIREA), basmati exports totalled 11.6 lakh tonnes during 2005-06 against 11.2 lakh tonnes the previous year.
"We are bullish about the prospects of rice exports. There is scope for Indian rice, especially parboiled one, in West and North Africa," said the sources.
At the Grains conference in Mumbai last week organised by Teflas, Mr S. Venkatesh, General Manger, PepsiCo, said India's presence in the global rice market has become consistent since 2002-03. "We have gained consistency in the international market in the absence of subsidy since 2003," he said in a presentation.
Exports of 39 lakh tonnes during 2005-06 were against a production of 917.9 lakh tonnes, just about four per cent. "The issue with India is that it is not dependent on exports against competing nations such as Thailand and Vietnam," according to sources.
Prices may rise
Not only the trade but even the Food and Agricultural Organisation has projected a hike in rice prices on increasing demand.
"Prices are likely to gain as exporters are driving the value of exports, farm economics are stressed and the dollar is weakening," said Mr Venkatesh. According to trade sources, Nigeria and Somalia are expected to keep Indian parboiled prices firm. Also, rising freight charges would favour India. The sources said India, Thailand and Vietnam have space to operate in the global rice market along with Pakistan.
Trade analysts say Indian rice has now got a place in the global market. It will remain a price catalyst of international volumes. The country would also position itself as a viable alternative with flexible varieties, drive the value of exports up on a bullish market and enhance the parboiled rice share in the Nigeria/South African market.
Currently, Indian white rice is quoted around $275 a tonne for 5 per cent broken, while Pakistan is quoting a little less. Prices for Thai and Vietnam varieties are hovering around $300 a tonne. Parboiled rice is ruling around $290 a tonne f.o.b.
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