India may export 75,000 tonnes of broken rice to three African nations
India will likely export 75,000 tonnes of fully broken white rice under government agreements to Senegal, Gambia and Djibouti soon, traders said.
The move follows the Indian government’s decision last week to allow the export of fully broken white rice – which has been banned from September 8, 2022 – on the basis of permission it has given to other countries for food security needs.
“However, this policy has not yet been announced by the Directorate General of Foreign Trade,” said Rajesh Paharia Jain, a New Delhi-based trader.
previous shipments
The development comes amid demand from African countries looking to India for the supply of whole broken white rice, along with parboiled rice.
Earlier in March, the government allowed the export of 2.5 lakh tons of broken rice to Senegal and one lakh tons to Gambia. In addition, about 10,000 tons of the rice batch has been allowed to be shipped to Djibouti, Ethiopia.
Development bodes well when demand for rice from Southeast Asia is a bit weak. The slowdown in demand even though Indian prices are much more competitive than those offered by Thailand, Vietnam or Pakistan.
“Indian-origin rice is cheaper than Vietnamese and Pakistani-origin rice. It is widely accepted unlike in the past despite being charged 20 percent on FOB which ranges from $65-75 depending on grades,” Jain said.
Taper inquiries
Although we are competitive, Indian rice prices have been going up lately. “Overall, the prices are a bit unstable,” said VR Vidya Sagar, Director of Bulk Logix.
“After we have shipped a good amount to Southeast Asia, the inquiries have now diminished,” said M Madan Prakash, President, ACEA.
For unexplained reasons, there is some dullness in rice exports to Southeast Asia. Maybe they will opt after June, said S Chandrasekaran, a Delhi-based business analyst.
Jin said 5 percent of broken eggs rule at $480 a ton and 25 percent break at $460. The offer price includes 20 percent export duties.
In contrast, Thailand quotes these items at $511 and $494, respectively. Vietnam offers these at $498-502 and $483-87 respectively. These prices are free on board (FOB).
India advantage
Sagar said that the demand for Indian rice will continue as it was in previous years because its prices are profitable. India is centrally located and shipping charges are also lower compared to Thailand or Vietnam. “People are buying too,” he said.
On the other hand, Jain said that parboiled rice is cheaper per ton by more than $80 per ton than the nearest competitor. “We offer parboiled rice at about $385 for July and August shipments,” he said, adding that demand from other countries for parboiled rice is shifting to India.
India offers 5 percent broken parboiled rice at $385 per ton, Thailand offers $523 and Pakistan $583-87.
standard output
India’s rice exports are expected to boost with a record production of 135.54 million tonnes of this crop in the year ending June as against 129.97 million tonnes last year. Rice production gained during the spring season and is likely to be good during the current season Zaid The season between sowing is spring and autumn.
This year’s autumn production was metric tons lower than the previous crop year as lack of rainfall affected the main growing regions of West Bengal, Odisha, East Uttar Pradesh and Jharkhand.
As a result, the government imposed a 20 percent export duty on white rice shipments from Sept. 8, 2022, and completely banned broken rice exports, which were eased last week. However, it exempted exports of basmati and parboiled rice from any restrictions.
Jain said Bangladesh is expected to be in the market to import rice under G2G deals.