India’s rice trade to set records amid export boom
MUMBAI: India’s rice exports in 2020 may rise by nearly 42 percent 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.