India Remains Leading in Global Rice Exports despite Government Restrictions
Published on: February 19, 2024.
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India Maintains Top Position as Leading Rice Exporter in 2023, Despite Restrictions
India remains the world’s largest rice exporter in 2023, according to the Thailand Rice Exporters Association (TREA). Despite implementing a ban on white rice shipments and imposing a 20% duty on parboiled rice, India exported 16.5 million tonnes (mt) of rice in 2023, maintaining its position at the top. However, its share in the global market declined by 27% compared to the previous year’s record exports of 22.3 mt.
Thailand, Vietnam, and Pakistan Step in to Fill the Void
Thailand, Vietnam, and Pakistan have filled the gap left by India’s restrictions. Thailand emerged as the second-largest exporter, shipping out 8.8 mt of rice, while Vietnam took the third spot with a record 8.3 mt exports. Pakistan secured the fourth place as the biggest rice shipper.
India Expected to Re-enter the Market Soon
Despite the decline in exports, the TREA official mentioned that India is expected to re-enter the global rice market later this year, shipping out more rice. Vietnam and Thailand are likely to compete for the second spot, each exporting around 7.5 mt. Pakistan is anticipated to maintain its shipments at 5 mt.
Price Dynamics in the Market
Thailand, Vietnam, and Pakistan are expected to maintain prices over $600 a tonne for their rice as long as Indian restrictions remain in place. However, prices for other varieties of rice, except Pakistan and Thailand’s 25% broken white, are ruling above $600 a tonne.
Potential Impact of El Nino on Rice Production
The weather pattern El Nino, which set in June last year, could potentially affect rice production if drought and dry periods persist in Thailand and other rice-producing countries such as India, Pakistan, and Vietnam.
India Implements Measures to Control Rice Exports
India imposed restrictions on rice exports due to a deficient south-west monsoon that impacted kharif paddy production. The ban on white rice shipments, 20% export duty on parboiled rice, and a minimum export price of $950 on basmati shipments were implemented to control rising food prices. The Ministry of Agriculture and Farmers Welfare estimates a 3.8% decrease in kharif rice production in 2023 compared to the previous year.
Competitive Pricing of Indian Parboiled Rice
Despite the supply curbs, Indian parboiled rice, the only variety available in the global market, is currently being sold at $543-547 a tonne, lower than Thailand’s $626 and Pakistan’s $637-641. The price includes the 20% export duty.
Current Market Scenario and Demand
The rice market is moving up, and despite the Red Sea crisis, cargoes to West Asia, South-East Asia, and Africa continue to go. Demand for parboiled rice is better than the previous year.
Brown Rice Gains Popularity
In the domestic market, parboiled rice is available at ₹33,000-34,000 a tonne, including handling charges. However, there is no problem with parboiled rice availability. Vietnam is buying brown rice priced around the same level as parboiled rice for human consumption. Brown rice also attracts a 20% export duty.
Export Statistics
According to the Agricultural and Processed Food Products Export Development Authority (APEDA), non-basmati rice exports between April-December 2023 dropped by 28%, reaching 8.34 mt valued at $3.34 billion, compared to 13.18 mt valued at $4.66 billion in the previous year. Basmati rice exports during the same period saw a 19% increase, reaching 3.97 mt valued at $3.97 billion, up from 3.20 mt valued at $3.34 billion.
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