India may maintain rice shipments in current fiscal on strong demand
Exports hits a new high in FY23 despite levy of 20% duty and reduced offtake by Asian majors
Indian non-basmati rice exporters hope to sustain the record-high shipments this fiscal as witnessed in the 2022–23 fiscal. In 2022-23 fiscal, shipments touched a new peak in volumes and value on the robust demand for the cereal.
Indian non-basmati rice exports, despite a levy of 20 per cent duty, a ban on broken rice and a decline in purchases by Asian buyers such as Bangladesh and China, touched a record 17.78 million tonnes valued at over $6.35 billion in 2022–23. In the previous year, non-basmati shipments were at 17.26 million tonnes valued at $6.12 billion. Overall, Indian rice exports in FY23 stood at over 22.28 million tonnes valued at over $11.13 billion.
The higher demand for Indian non-basmati rice from traditional buyers from African countries such as Benin, Cote D’Ivoire, and Senegal helped offset the decline in off-take from Asian customers such as Bangladesh, China, Nepal, and Vietnam.
Benin, with purchases exceeding 1.55 million tonnes, was the largest buyer of non-basmati rice , compared with 1.52 million tonnes a year ago. Cote d’Ivoire at 1.21 million tonnes (0.93 mt a year ago), Senegal at 1.33 mt (1.09 mt), and Togo at 0.94 million tonnes (0.67 mt) were among the large African buyers. China reduced its rice purchases to 1.5 mt (1.63 mt), while Bangladesh almost halved it to 0.84 mt (1.62 mt) whereas Nepal also reduced the offtake sharply at 0.76 mt (1.38 mt) and Vietnam at 0.64 mt (0.70 mt) during the year. India gained market share from Pakistan, which had a bad crop last year.
“We expect to maintain the same figures both in value and volumes this year as there is strong demand for Indian rice,” said BV Krishna Rao, President, The Rice Exporters Association, commenting on the export outlook. There is no other country that can replace India as a rice supplier, he said. India accounts for about 45 per cent of the global rice trade.
Despite the levy of a 20 per cent duty last year, the demand for Indian rice is intact. “With shipments of 22 million tonnes in 2021–22, we clocked $10 billion, and last year we clocked over $11 billion with almost the same volumes. The higher value is because of the duty,” Rao said.
On potential concerns about El Nino in the upcoming kharif season, Rao said it is unlikely to have any impact on the supplies. Even last year, weak rains in eastern India, mainly in Bihar and parts of West Bengal, did influence output, but higher supplies from other States, including Telangana, offset the impact, he said.https://www.thehindubusinessline.com/economy/agri-business/india-may-maintain-rice-shipments-in-current-fiscal-on-strong-demand/article66804067.ece
Published Date: May 3, 2023