August 12, 2020: India’s exports of non-basmati rice in the first two months of FY21 has jumped 52.5% to 11.13 lakh tonnes from 7.3 lakh tonnes in the same period of FY20.
Africa has emerged as the major buyer of non-basmati rice and exporters are hoping volumes will increase further when Bangladesh starts importing this variety.
“Africa is depending on India for rice supply this year as Thai rice prices have skyrocketed. Non-basmati rice will do well this year,” said BV Krishna Rao, president, All India Rice Exporters Association.
Rao is optimistic Indian non-basmati rice exports will touch FY18 levels when the country exported 8.64 million tonnes. “Exports of non-basmati rice subsequently went down in the next two years and in FY20 we had achieved exports of 5.04 million tonnes. This drop in non-basmati rice was because the government increased the minimum support price of paddy and farmers were not interested in exports. Also, the government had procured huge quantities of rice. That is why the exports went down,” added Rao.
Bangladesh too, will open up opportunities for Indian non-basmati rice exports. “Either they will directly buy from private players or they will buy through government-to-government scheme. Whichever way it happens, it will provide a fillip to the country’s rice exports,” Rao added.
Traders said rice millers in Bangladesh were demanding high prices for rice that they would provide to the government warehouses.
“Rice consumption has increased in Bangladesh as people are staying indoors due to the coronavirus outbreak. Eating out has stopped. This is increasing the demand for rice in the country” said Suraj Agarwal, CEO, Tirupati Agri Trade.
Agarwal said a decision from the Bangladesh government on import of rice from India is expected by the end of this week or early next week.
Bangladesh has imposed an import duty of 55% on rice, but traders said the government is likely to bring down import duty on rice to 18%.
Bangladesh food ministry is considering importing of rice amid sluggish progress in the procurement of rice and paddy due to a lack of interest among millers and farmers to supply the cereal to public warehouses.
International media reports said that until now, Bangladesh government’s food office could meet 20% of its paddy procurement target of 8 lakh tonnes and 45% of its rice procurement target of 11.5 lakh tonnes. And if it progresses this way, then the target of paddy procurement is unlikely to be achieved within the deadline of 31 August.
Source: The Economic Times
