‘Lifting of MEP on non-Basmati rice helps India compete globally’

In the first tender for the supply of 50,000 tonnes of parboiled rice floated by the Bangladesh government, which is likely to buy over 5 lakh tonnes (lt) in tranches, Pattabhi Agro Food of India has emerged as the lowest bidder after quoting $477/tonne (CIF) at Chattogram and Mongla ports. The Food Ministry of Bangladesh has floated another tender for 50,000 tonnes on November 4, which will be opened on November 18.

Indian rice exporters said the recent decisions to remove the minimum export price (MEP) of $490/tonne and abolish export duty have helped them compete globally.

Halder Venture, another bidder who participated in the tender, quoted $499.77/tonne, trade sources said, adding it had offered to supply rice from any of four origins—India, Myanmar, Thailand, and Vietnam. The competition was so intense that one Bagadiya Brothers offered to supply at 477.77/tonne, which is $0.77/tonne (or ₹65/tonne) higher than the lowest bidder, sources said.

Among other bidders, SAEL Agri Commodities quoted $494.45/tonne, Agrocorp International $490.56/tonne and Aditya Birla Global Trading (Singapore) $479.50/tonne, sources said.

On October 20, the Food Ministry of Bangladesh floated the first global tender to supply 50,000 tonnes of non-Basmati parboiled rice, 30,000 tonnes at Chattogram and 20,000 tonnes at Mongla ports on CIF Liner Out term. “Cost of the Cargo, Insurance and Freight including Stevedoring, Overside Handling and Lightering are on seller’s account,” it had said. The second tender also has the same delivery conditions as the first tender.

India’s non-Basmati rice exports until September 30 (since April 1) in the current fiscal have reached 46.52 lt (worth $2.25 billion) as against 68.81 lt ($2.7 billion) year-ago, mainly due to the ban on shipments of white raw rice and the 20 per cent export tax on the parboiled variety.

“With the Kharif crop arrivals in full swing, the government’s timely decision to lift export restrictions has greatly helped in bringing in a lot of liquidity into the grain market. It provided farmers another window to sell theire produce. As Rabi crop prospects also looks very good, so India hopes to regain the lost markets internationally,” said K V Krishna Rao, president of the Rice Exporters Association.The Food Ministry has announced another tender for 50,000 tonnes set to open on November 18.