India's basmati rice exports could jump 15% as key buyers stock up

KRBL

30/11/2022 10:23

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      Exports could rise to 4.5 mln T vs 3.9 mln T yr ago
    

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      Middle East countries buy more to build stocks
    

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      Export prices jump 25% y/y on strong demand
    

  
    By Rajendra Jadhav
       MUMBAI, Nov 30 (Reuters) - India's exports of premium
basmati rice are likely to jump 15% over last year as key buyers
in the Middle East build their inventories despite prices
jumping by nearly a quarter, leading exporters told Reuters.
    Higher basmati exports would keep local prices firm, helping
Indian farmers earn more by pushing paddy prices up to a record
high.      
    "After the Ukraine war, buyers are afraid of a sudden supply
disruption. Every buyer is trying to have enough stocks," said
Vijay Setia, former president, All India Rice Exporters
Association.
    India could export more than 4.5 million tonnes in 2022/23
financial year started on April 1, up 15 % from a year ago, he
said. Trade ministry data showed that exports rose 11% to 2.16
million tonnes in the first half of 2022/23.
    A sharp drop in freight charges from this year's peak was
also prompting importers to buy more, Sethia added.
    India, the world's biggest rice exporter, mainly exports top
grade basmati rice to the Middle East and non-basmati rice to
African and Asian countries. The country has put restrictions on
exports of non-basmati rice to calm local prices.
        Iran, traditionally the biggest buyer of Indian basmati
rice, was an purchasing actively in the past few months, but
countries like Iraq and Saudi Arabia have been more active of
late, said Anil Mittal, chairman and managing director KRBL Ltd
 KRBL.NS , a leading rice exporter.
  
    Iran, Saudi Arabia, Iraq, United Arab Emirates, and Yemen
account for nearly two-thirds of India's basmati rice exports.
    "Exports prices rose in the past few months, but still
demand is there. Iran is not active but Saudi Arabia and Iraq 
bought 150,000 tonnes each last month," Mittal said.
        Export prices for the grain have jumped to over $1,450
per tonne from around $1,160 a year ago.
  
    Higher exports have lifted prices of traditional basmati
paddy to a record 60,000 rupees per tonne in India, Mittal said.
    India's basmati rice production was expected to jump by
around 20% after farmers expanded area under the crop, but
untimely rainfall in September and October capped the upside in
the production, Mittal said.
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India's basmati rice exports    https://tmsnrt.rs/3XGYHbf
Top ten buyers of India's basmati rice    https://tmsnrt.rs/3imAZAY
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 (Reporting by Rajendra Jadhav; editing by Nivedita
Bhattacharjee)
 ((rajendra.jadhav@thomsonreuters.com; +91-22-68414378 ; Reuters
Messaging: rajendra.jadhav.thomsonreuters.com@reuters.net))