Delhi to resume non-basmati rice exports as it seeks to expand world market share.

NEW DELHI – India is preparing to resume exports of non-basmati white rice as inventories in the world’s biggest exporter of the grain surge and farmers prepare to harvest a new crop.

New Delhi set a floor price for non-basmati exports at $490 per tonne, a government order said.

India on Friday also reduced the export duty on parboiled rice to 10% from 20% earlier, a move that will lower its export prices, increase shipments and force competing countries like Thailand, Vietnam, Pakistan and Myanmar to reduce their prices as well.

India imposed various curbs on rice exports in 2023 and continued them in 2024 to keep local prices in check ahead of the April-June national elections.

The government earlier this month removed a floor price for basmati rice exports to help thousands of farmers who complained about a lack of access to lucrative overseas markets such as Europe, the Middle East and the United States.

Thai rice export prices fell to a 14-month low this week, pressured by quiet demand and competition from cheaper rivals, while Indian prices edged higher on a stronger rupee, despite sluggish demand from Asian and African buyers.

Benchmark 5% broken rice from Thailand was quoted at $560 per tonne, the lowest level since July 20, 2023 and down from $565 a week earlier.

There was demand coming from Indonesia, but competitors were buying rice from other exporters at lower prices, said a Bangkok-based trader, adding that depreciation in the baht would help soften prices.

Commerce Minister Pichai Naripthaphan said the impact of the baht’s rally on exports would be felt in the next three months, especially in agricultural goods.

Published Date: September 28, 2024