India can maintain rice deliveries in the current fiscal year due to strong demand

Indian non-basmati rice exporters are hoping to maintain record-high shipments this fiscal year, as seen in fiscal 2022-23. In fiscal 2022-23, shipments hit new highs in both volume and value on the back of robust grain demand.

Indian non-basmati rice exports hit a record 17.78 million tonnes, worth over $6.35 billion, despite a 20 percent tariff, a ban on broken rice and a drop in purchases from Asian buyers like Bangladesh and China US Dollars in 2022-23. Last year, non-basmati shipments totaled 17.26 million tons worth $6.12 billion. Overall, Indian rice exports in FY23 totaled over 22.28 million tons worth over $11.13 billion.

African demand

Higher demand for Indian non-Basmati rice from traditional buyers from African countries such as Benin, Ivory Coast and Senegal helped offset declines in demand from Asian customers such as Bangladesh, China, Nepal and Vietnam.

Benin was the largest buyer of non-Basmati rice with purchases of over 1.55 million tons, down from 1.52 million tons a year ago. Cote d’Ivoire with 1.21 million tons (0.93 million tons a year ago), Senegal with 1.33 million tons (1.09 million tons) and Togo with 0.94 million tons (0 .67 million tons) were among the major African buyers. China reduced its rice purchases to 1.5 million tons (1.63 million tons), while Bangladesh almost halved them to 0.84 million tons (1.62 million tons), while Nepal also saw a sharp decrease to 0, 76 Mt (1.38 Mt) and Vietnam reduced to 0.64 Mt (0.70 Mt) year. India gained market share from Pakistan, which had a poor harvest last year.

“We expect to maintain the same numbers this year in both value and volume as there is strong demand for Indian rice,” said BV Krishna Rao, President of the Rice Exporters Association, commenting on the export outlook. There is no other country that can replace India as a rice supplier, he said. India accounts for about 45 percent of the world rice trade.

Despite the 20 percent tariff imposed last year, demand for Indian rice is intact. “With shipments of 22 million tonnes in 2021-22, we hit $10 billion, and last year we hit over $11 billion on almost the same volumes. The higher value is due to duty,” Rao said.

Regarding potential El Nino concerns in the upcoming Kharif season, Rao said it was unlikely to impact supplies. Even last year, light rains in eastern India, mainly in Bihar and parts of West Bengal, affected production, but higher shipments from other states, including Telangana, offset the impact, he said.

Related Articles

Back to top button

Subscribe To Our Newsletter

Don't miss new updates on your email