India exports more than 1 million tons of rice to 7 countries, what message does it send?

According to the document just signed, India agreed to export white rice (non-basmati) to Nepal in the amount of 95,000 tons, Ivory Coast 142,000 tons, Republic of Guinea 142,000 tons, Malaysia 170,000 tons, Philippines 295,000 tons, Cameroon 190,000 tons and Republic of Seychelles 800 tons. The total amount of rice exported this time is over 1.034 million tons.

India announced to export more than 1 million tons of rice to 7 countries

This is the second time India has decided to export rice through diplomatic channels since the ban on non-basmati white rice exports was issued on July 20, 2023. In late August 2023, India agreed to export 79,000 tonnes to Bhutan, 50,000 tonnes to Singapore and 14,000 tonnes to Mauritius.

At present, India’s diplomatic export of more than 1 million tonnes of rice is a clear message that the country will not relax its export controls. This will keep the world rice market in a state of low supply and high prices.

The rice export restrictions that India is applying are: Banning the export of non-basmati white rice; imposing a 20% export tax on parboiled rice and applying a floor export price of 1,200 USD/ton for basmati rice, which will expire from October 15.

Traders expected that after October 15, India would be able to relax its rice export restrictions due to the year's biggest harvest, with abundant output. However, that expectation seems unlikely to come true and India still wants to strictly control the amount of rice exported. Therefore, in the coming time, rice importing countries will increase purchases, making the world market more vibrant.

On October 18, an update from the Vietnam Food Association (VFA) said that the prices of 5% and 25% broken rice from Vietnam increased by 10 USD to 633 and 618 USD/ton, respectively. Meanwhile, 5% broken rice from Thailand increased by only 1 USD to 582 USD/ton, while 25% broken rice decreased by 1 USD to 532 USD/ton.

Thus, the price of Vietnamese rice is at the highest level in the world, 51 USD/ton higher than the same quality of Thai rice.

With the same increase of 10 USD as Vietnam, Pakistan's 5% broken rice only reached 573 USD/ton and 25% broken rice was 493 USD/ton.

From the beginning of the year to the end of September, rice exports reached a turnover of 3.66 billion USD, an increase of 40% over the same period last year and exceeding the export turnover of the whole year of 2022 of 3.5 billion USD.

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