India curbed rice exports after rise in shipments lifts local prices (updated)

KRBL

09/09/2022 08:43

(Adds details)
    By Mayank Bhardwaj and Rajendra Jadhav
    NEW DELHI/MUMBAI, Sept 9 (Reuters) - India restricted rice
exports after shipments jumped sharply in the past few months
and amid concerns over the new season crop because of
below-average rainfall in four key producing states, a top
government official said on Friday.
    India banned exports of broken rice and imposed a 20% duty
on exports of various grades of rice on Thursday as the world's
biggest exporter of the grain tries to augment supplies and calm
local prices after below-average monsoon rains hit planting.
 urn:newsml:reuters.com:*:nL1N30F1GI
    Broken rice prices jumped 38% so far in 2022 as exports
during April-August rose to 2.13 million tonnes from 1.58
million tonnes a year ago, Sudhanshu Pandey, the most senior
civil servant at the Ministry of Consumer Affairs, Food and
Public Distribution, told reporters.
    "There was exponential increase in broken rice exports in
the past four years," Pandey said.
    Broken rice wasn't available for poultry feed or for ethanol
production as the share of broken rice in total exports jumped
to 23% in 2022 from just 1.3% in 2019, he said.
    A rally in corn prices prompted feed makers, especially in
China, to substitute corn with broken rice in the past few
months. A few African countries import broken rice from India
for human consumption.
    Below-average rainfall in key rice-producing states such as
Bihar, Uttar Pradesh and Jharkhand has raised concerns over
India's rice production.
    After a weak start in June, when monsoon rains were 8% below
average, summer rains picked up in July and August, cloaking
16.8% and 3.4% above average, respectively.
    India's overall monsoon rains so far in the season that
began on June 1 are 5% above average. Still, rains over Bihar,
Uttar Pradesh and Jharkhand were patchy, with rainfall deficit
as high as around 45%.
    India's weather office defines average, or normal, rainfall
as between 96% and 104% of a 50-year average of 89 cm (34
inches) for the season.   
    The country's rice production could fall by as much as 12
million tonnes in the worst-case scenario, said Pandey, adding
"Yields could be lower in some areas due to lower rains but in
terms of overall availability and supplies, we do not have any
problem at all."
    Last year, India's summer-sown rice output, which accounts
for more than 80% of the country's total production, was 111.8
million tonnes.
    India's rice exports in the first eight months of 2022 rose
to 15.25 million tonnes from 14.5 million tonnes a year ago.
    The area under India's summer-sown rice dropped by 3.8
million hectares this year, Pandey said.
    After India's decision to curb rice exports shares in Indian
rice exporters such as LT Foods  LTOL.NS , GRM Overseas
 GRMO.BO , Chaman Lal Setia Exports  CLSE.NS , Kohinoor Foods
 KOFO.NS  and KRBL  KRBL.NS  fell up to 5% on Friday.
    India in May banned wheat exports after overseas shipments
surged due to a rally in global prices, triggered by Russia's
invasion of Ukraine - the two key wheat suppliers.
    Unlike wheat, rice was so far not impacted by any major
shortfall in supplies or the war in the Black Sea region.

 (Reporting by Mayank Bhardwaj and Rajendra Jadhav; Editing by
Kim Coghill, Elaine Hardcastle and Louise Heavens)
 ((rajendra.jadhav@thomsonreuters.com; +91-22-68414378 ; Reuters
Messaging: rajendra.jadhav.thomsonreuters.com@reuters.net))