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 in the first ten months of 2020 totalled million 11.95 tonnes, up from 8.34 million tonnes a year earlier, according to data compiled by the ministry of commerce and industry.
Non-basmati rice exports jumped 61% from a year earlier to 7.6 million tonnes after prices jumped in the world’s second biggest exporter Thailand, making Indian shipments attractive, said an exporter based in Mumbai.
The country’s basmati rice exports rose 20% to 4.36 million tonnes on strong purchases from Iraq, the data showed.
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 exports in 2020 may rise by nearly 42% from a year ago to record highs of 14 million tonnes, the Rice Exporters Association estimates.