Monday, 8 October 2012

Rice exports at record 10 MT in 2011-12: USDA

Press Trust of India / New Delhi Oct 05, 2012,
Rice exports from India are estimated to be at record 10 million tonne in 2011-12 marketing year, that ended last month, on strong demand and competitive prices, says a report.

India re-entered the rice exports market in September 2011 after a four-year ban on exports of non-basmati rice.

According to the US Department of Agriculture (USDA), rice exports estimated for India are revised upward by 2 million tonne to a record 10 million tonne in the 2011-12 marketing year (October-September) after taking into account the official trade reports.

It said that the country is estimated to have shipped 8.2 million tonne of rice in the first nine months of the 2011-12 marketing year. Of which, 5.5 million tonne was non-basmati rice and 2.7 million tonne was basmati rice.

"Assuming some spillover of export shipments lying at Kakinada to October, rice exports during July-September are likely to exceed 1.8 MT, which will take rice exports in 2011-12 to a record 10 million tonne," it added.

Quoting trade sources report, the USDA said that export of basmati and non-basmati rice have been steady during the months of July through September on strong export demand and relatively stable Indian rupee vis-à-vis US dollar.

That apart, the USDA said, "Indian non-basmati rice for export remains very price competitive, with Indian common rice varieties ranging from $375-450 per tonne on frieght on board (FOB) in the fourth week of September."

The "unexpectedly" strong export demand for rice has resulted in port congestion at Kakinada in the east coast with reports of about 6,00,000 tonne of rice currently lying in the port for export shipment, it noted.

Lower rainfall in July-August, particularly in coastal Gujarat and Andhra Pradesh, has also facilitated movement of rice for export, it added.

The report said that the government is likely to continue with the current rice export policy due to surplus domestic supplies and abnormally large government foodgrain stocks.

The government rice stocks stood at 25.59 million tonne as on September 1, nearly 2.9 million tonne higher than the last year's level.

India, the world's largest rice grower, had produced a record 104.32 million tonne of rice last year due to good monsoon.

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