New Delhi, Bengaluru/ May 27:
Indian
shipments of non-basmati rice in the current financial year are likely
to remain at last year’s levels, mainly due to its competitive pricing
and superior quality against major exporters such as Thailand and
Vietnam.
However, lack of clear signals from Nigeria,
one of the large buyers of Indian par-boiled rice could dent the
prospects, exporters said.
Thai prices up
According
to data provided by the All India Rice Exporters Association (AIREA),
the country exported 11.65 million tonnes (mt) of rice in 2014-15 of
which non-basmati varieties accounted for 7.87 mt.
Thailand
exported around 11 mt over the same period but has a $10/tonne premium
over Indian varieties in the 25 per cent broken rice and par-boiled rice
segments, and were $40 more expensive in 100 per cent broken rice
segment according to quotations earlier this week.
“Increased
prices in Thailand have an impact on non-basmati rice. We touched 7.8
mt last year and should be at the same level in 2015-16 as well,” said a
senior Government official.
Experts stated that
overseas sales could increase, particularly with decreasing domestic
prices and a depreciating rupee making exports cheaper in dollar terms
against a strong Thai baht.
Nigerian market
Further,
with China importing the bulk of Thai rice, India’s traditional
non-basmati markets in Africa are likely to benefit domestic exporters.
Nigeria, Senegal, South Africa, Liberia and Benin, are African nations
that purchased the largest share of Indian non-basmati rice.
“Despite
a new government in place, Nigeria is yet to spell out its policy on
rice purchases. If Nigeria resumes imports from India, our exports will
reach 7 mt, or else they will be lower at around 5.5 mt,” said BV
Krishna Rao, Managing Director of Pattabhi Agro Foods Ltd, a large
exporter.
Indian rice shipments to the violence-hit
Nigeria had slowed down since December last year amidst fall in crude
price and a weak currency.
“The rice inventory in
Nigeria is low and shipments could pick up if there is clarity on the
policy,” Rao added. India accounts for close to half of the 2.5 m t of
parboiled rice that Nigeria imports.
“With the
problems in Thailand – which competes with Indian non-basmati varieties
in Africa – exporters here should do better in the upcoming year. Around
9-9.5 mt will likely be exported,” said Tejinder Narang, a grains trade
analyst.
“Thailand also serves the Chinese market
where demand pushes their prices up. As a result, the focus towards
Africa gets deleted,” he added, stating that China granting access to
Indian exports of non-basmati was politically reliant.
Sluggish activities
The
industry expects rice output to be 2-3 mt more in 2015-16 than the
102.54 mt registered last year according to Government data. Non-basmati
varieties are likely to make up 95 mt of the output.
Meanwhile,
the shipments have turned sluggish as the prevailing heat wave in
Andhra Pradesh over the past few days has hampered the loading
operations at Kakinada, the major port for non-basmati rice exports.
“Loading
operation is being carried out only in the night at the anchorage port
due to the prevailing heat wave,” Rao said adding that the disruption
was temporary.
Source : The Hindu Businessline
New Delhi, Bengaluru/ May 27:
Indian
shipments of non-basmati rice in the current financial year are likely
to remain at last year’s levels, mainly due to its competitive pricing
and superior quality against major exporters such as Thailand and
Vietnam.
However, lack of clear signals from Nigeria,
one of the large buyers of Indian par-boiled rice could dent the
prospects, exporters said.
Thai prices up
According
to data provided by the All India Rice Exporters Association (AIREA),
the country exported 11.65 million tonnes (mt) of rice in 2014-15 of
which non-basmati varieties accounted for 7.87 mt.
Thailand
exported around 11 mt over the same period but has a $10/tonne premium
over Indian varieties in the 25 per cent broken rice and par-boiled rice
segments, and were $40 more expensive in 100 per cent broken rice
segment according to quotations earlier this week.
“Increased
prices in Thailand have an impact on non-basmati rice. We touched 7.8
mt last year and should be at the same level in 2015-16 as well,” said a
senior Government official.
Experts stated that
overseas sales could increase, particularly with decreasing domestic
prices and a depreciating rupee making exports cheaper in dollar terms
against a strong Thai baht.
Nigerian market
Further,
with China importing the bulk of Thai rice, India’s traditional
non-basmati markets in Africa are likely to benefit domestic exporters.
Nigeria, Senegal, South Africa, Liberia and Benin, are African nations
that purchased the largest share of Indian non-basmati rice.
“Despite
a new government in place, Nigeria is yet to spell out its policy on
rice purchases. If Nigeria resumes imports from India, our exports will
reach 7 mt, or else they will be lower at around 5.5 mt,” said BV
Krishna Rao, Managing Director of Pattabhi Agro Foods Ltd, a large
exporter.
Indian rice shipments to the violence-hit
Nigeria had slowed down since December last year amidst fall in crude
price and a weak currency.
“The rice inventory in
Nigeria is low and shipments could pick up if there is clarity on the
policy,” Rao added. India accounts for close to half of the 2.5 m t of
parboiled rice that Nigeria imports.
“With the
problems in Thailand – which competes with Indian non-basmati varieties
in Africa – exporters here should do better in the upcoming year. Around
9-9.5 mt will likely be exported,” said Tejinder Narang, a grains trade
analyst.
“Thailand also serves the Chinese market
where demand pushes their prices up. As a result, the focus towards
Africa gets deleted,” he added, stating that China granting access to
Indian exports of non-basmati was politically reliant.
Sluggish activities
The
industry expects rice output to be 2-3 mt more in 2015-16 than the
102.54 mt registered last year according to Government data. Non-basmati
varieties are likely to make up 95 mt of the output.
Meanwhile,
the shipments have turned sluggish as the prevailing heat wave in
Andhra Pradesh over the past few days has hampered the loading
operations at Kakinada, the major port for non-basmati rice exports.
“Loading
operation is being carried out only in the night at the anchorage port
due to the prevailing heat wave,” Rao said adding that the disruption
was temporary.
Source : The Hindu Businessline
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