Traders of non-basmati rice optimistic about exports as demand from countries increase to maintain food security. Rice export from India increases by more than 50%.
Increase in Non-Basmati Exports
The exports of non-basmati rice have registered a growth of 52% in the first two months of the current fiscal year. The quantity of exports has increased to 11.13 lakh tonnes in the April-May period of FY21 from 7.3 lakh tonnes in the same period of FY20. The export of non-basmati rice was declining from the last two years.
Growth in Demand From Several Countries
The Rice Exporters Association President, BV Krishna Rao, said that the non-basmati exports have rebounded. He attributed to demand from traditional buyers in the African region owing to a surge in Thai rice prices for such an increase. Apart from this, the non-basmati rice shipments have picked up in Malaysia, Philippines, and Russia for food security reasons. Further, he said that competitive prices, abundant production, and favourable currency have contributed to the jump in exports. The country touched an all-time high in rice production to 117.94 mt in 2019-20 from 96 mt in 2010-11. Moreover, the current Kharif season has registered a 17% higher plantation, which will further aid the exports.
Drop in Exports of Non-Basmati Exports in 2018
Explaining the downward trend in non-basmati exports after 2018, Rao said that the drop was due to increased MSP provided by the government. Also, farmers lost interest in exports as the government procured huge quantities form them. However, he is optimistic that this year the exports will touch FY18 levels of 8.64 million tonnes.
Increase in Demand From Bangladesh
Rao also mentioned prospects for an increase in demand from Bangladesh. Suraj Agarwal, CEO, Tirupati Agri Trade explained rice consumption in the country has risen as people are staying indoors owing to the pandemic. The Bangladesh government is considering imports amid the slow procurement.
In all, the export association is hoping a high volume of non-basmati exports this year.