India's rice trade to set records amid export boom

MUMBAI, Oct 08 (Arab News): India's rice exports in 2020 may rise by nearly 42 per cent from a year ago to record highs because of reduced shipments from rival exporters and a depreciating Indian rupee, industry officials said this week.
Higher shipments from India, the world's biggest rice exporter, could cap global prices, reduce the country's bulging inventories and limit Indian state stockpiler purchases from farmers.
India's rice exports could jump to 14 million tons in 2020, up from last year's 9.9 million tons, the lowest in eight years, said B.V. Krishna Rao, president of the Rice Exporters Association.
"Thailand's shipments are falling due to the drought. Vietnam is struggling because of lower crop. That share is naturally coming to India," Rao said.
Thailand, the world's second-largest rice exporter, suffered through a drought earlier this year that has affected the rice crop. Shipments in 2020 could fall to 6.5 million tons, the lowest in 20 years.
Vietnam, the third-biggest global exporter, has contended with low water levels in the Mekong River Delta, the country's main rice growing region, that has limited supply.
India mainly exports non-basmati rice to Bangladesh, Nepal, Benin and Senegal, and premium basmati rice to Iran, Saudi Arabia and Iraq.
India's rice shipments in 2020 will rise because of robust demand for non-basmati rice from African countries, said Nitin Gupta, vice president for Olam India's rice business. "Basmati rice demand is more-or-less stable, but in non-basmati rice we have seen a huge surge in demand due to attractive prices," Gupta said.
India's non-basmati rice exports may double from a year ago to 9.5 million tons, while basmati rice exports would remain stable around 4.5 million tons, he said.