Pandemic Means Rice Exports Spurts For India
Rice Exports: Indian farmers in Punjab and Haryana are fetching 15percent higher returns on the 1121 Pusa variety since November, reports have confirmed. Despite the farmer led agitations, India has been getting escalated demand for rice from Netherlands, Belgium and even Vietnam.
Demand has been escalating due to the South Asian residence in Netherlands and Belgium seeking more of this variety of rice. India’s exports of basmati rice to Belgium have increased 60% in the first eight months of the current financial year, while imports by the Netherlands have almost doubled.
Strangely, Vietnam, one of the world’s largest exporters of rice are also purchasing from India. Local prices have said to have jumped the highest in nine years in Vietnam, forcing it to pick the grain from one of its biggest export rival. The same can also see Thailand preferring India for its rice exports. According to industry experts, the Indian traders are looking at contracting to export 70,000 tonnes of 100 percent broken rice for January and February at around $310 per tonne on a free-on-boar (FOB) basis.
India is actually providing a rice difference which is making exports in such large quantities possible. But this rise in exports could look at a rise in the domestic price too. There are chances that Vietnam and other countries would like to stockpile. This is primarily due to pandemic led food shortage. In 2020, Vietnam announced its plans to stockpile 2,70,000 tonnes of rice to ensure food availability. Further, there is added demand coming in from African countries too that are being harassed by seasonal droughts and pandemic led scarcity.