India’s rice exports have declined to around 864,000 tons in January 2013, down about 22% from around 1.1 million tons exported in December 2012, according to the USDA. The agency said that exports have slowed in 2013 due to lesser demand for non-basmati rice and relatively firm domestic prices compared to December 2012.
Non-basmati rice exports in January 2013 stood at around 544,000 tons, down about 33% from around 809,000 tons exported in December 2012. However, basmati rice exports fared better, reaching around 320,000 tons in January 2013, up about 11% from around 287,000 tons exported in the previous month.
Rice prices from the 2012-13 season are higher because of the 16% increase in minimum support price of paddy this year; domestic rice prices are about 12% higher than last year’s levels. However, “stiff competition” from Vietnam, Myanmar and Pakistan is also causing the drop in rice exports by India this year, said the USDA.
Steady exports of parboiled non-basmati and basmati rice may help India export about 8.1 million tons in 2013, down about 20% from a record 10.6 million tons of rice exported in 2012, said the USDA.
Source: blackseagrain.net