Export demand for Indian rice is strong due to competitive price

24-Jun-2024 08:55 PM

Hyderabad. Although commercial export of 100% broken rice and non-Basmati white rice from India is banned, export of non-Basmati Sela rice and Basmati rice is continuing.

However, 20% export duty is applicable on Sela rice and minimum export price of 950 dollars per tonne is fixed for Basmati rice. It is worth noting that despite the imposition of 20% export duty, the price of Indian Sela rice remains at a competitive level,

whereas its price is quite high in two main competitors - Thailand and Vietnam. As a result, the demand for Indian rice remains strong in the importing countries.

Earlier it was expected that after the vigorous harvesting of Rabi season paddy, the domestic market price of rice will soften, due to which the export offer price may come down a bit,

but this did not happen. On the contrary, the export offer price of rice increased a bit last week. The spot stock of exportable rice in Thailand is limited while its price was running at a high level of $ 615-620 per tonne.

A few days ago it had reached a high of $ 630 per tonne. Similarly, the export offer price of Vietnamese rice is being reported to be $ 570 per tonne while Indian 5 percent broken rice is available at $ 544-552 per tonne.

Vietnamese exporters are focused on the demand of nearby countries like Indonesia and Philippines while Indian exporters are more active in African countries. The increase in the minimum support price of paddy by Rs 117 per quintal by the Central Government last week is also strengthening the rice market, due to which the price of rice may increase a bit.