Transportation constraints for rice exporters

 For the April-December period of the current financial year, total rice exports grew 80 per cent to 11.59 million tonne from 6.42 million tonne in FY20. Of this, shipments of basmati rice has grown by 19 per cent at 3.38 million tonne from 2.84 million tonne in FY20, while that of non-basmati have seen a whopping increase of 129 per cent to 8.21 million tonne from 3.58 million tonne same period last fiscal.

BV Krishna Rao, president of the Rice Exporters Association, a body of non-basmati rice exporters, said India is expected to achieve 12 million tonnes of non-basmati rice exports in FY21. “There is a shortage of rice across the globe and therefore, export demand has gone up,” Rao said.

Rice exports, including basmati and non-basmati, are expected to be around 16 million and 17 million tonnes against 9.48 million tonne in FY20. “We are also hearing that the Philippines might reduce import duty on rice from 50 per cent to 35 per cent. If that happens, then it will open another destination for Indian rice exporters,” Rao added. He expects that in FY22, Indian non-basmati rice exports will surpass 12 million tonnes.

Bangladesh has emerged as one of the leading buyers of non-basmati rice. Indian rice exporters are exporting rice at $400-$420 per tonne when prices at other destinations such as Thailand and Vietnam are ruling at a high of $500 per tonne.

Suraj Agarwal, CEO of Tirupati Agri Trade that exports rice to Bangladesh said “The export price to Bangladesh is quite a comfortable one. However, we are feeling the pinch of rising diesel prices and the margins of exporters are getting squeezed by 2-4 per cent.”

know more Indian rice exporters in a fix as transport costs rise, demand from Gulf drops