Rice

Indian Parboiled rice export witnessed a flat tone for the previous week with many rice traders holding rice offers as speculation about an adjustment in the sea freights is seen. Many rice exporters on the other hand do not agree with this story and feel that the active sea freight price will remain constant for another 3 months. For break bulk rice shipments, the fluidity of firm fixtures at Kakinada/Kandla has also kept the rice trade in check after a prolonged bullish rally. One Indian rice trader said that Asian rice importing countries have been making purchases of 5 percent broken white rice for human consumption and 100 percent broken white rice for animal feed purposes.

Robust demand from Southeast Asia rice importing countries

Rice demand continues in the international market.

Robust demand from Southeast Asian rice importing countries

Indian parboiled rice export witnessed a flat tone over the last week as markets were majorly affected by the volatility in forex markets. While rice demand remained strong, rice exporters limited their offers to FOB terms as the sea freights remained on a higher side. Rice exporters maintained a neutral view on the market views as the bottlenecks continued in the vessel loading ports of Kakinada & Kandla. Many of the rice exporters are impacted by the uncertainty of the vessel arrivals as well as departures. Rice millers and rice traders limited their offers for White Rice in the principal segment as limited availability was seen, meanwhile, the 100 percent broken rice export remained soft as arrivals continued. 100 percent broken rice export sees a strong rice demand from rice importing countries from East and West Africa.

Non-basmati rice becomes the top Agri export in India last Apr-Dec’20

Indian non-basmati rice export prices are more competitive than other rice exporting countries.

Non-basmati rice becomes the top Agri export in India

Indian Parboiled Rice exports went soft as limited covering in short positions were seen mainly due to the non-availability of containers. Rice traders have remained to emphasize the overpriced freights enforced by shipping lines which have led to a bearish outlook and high margin leakages due to longer transit of rice shipments. The majority of the rice traders have indicated that this crisis will continue until the middle of the year 2021 or may even out in phases. While 100 percent broken white rice exports remain soft to bearish as more arrivals continue for rice exports to rice importing countries from Africa and Southeast Asia.

Strong Demand for Indian rice export

Andhra Pradesh [India]  to use deepwater seaport for rice exports.

Indian parboiled rice exports entered a bearish zone specifically for Bengal Origin (POL: Kolkata) while a few rice exporters have indicated rice price drop in Central India. The bearish tone is mainly due to the slow covering of short positions for Feb’21 and Mar’21 as bottlenecks in the logistics continue to disturb rice trade activities. The foreign rice demand is steady, and India continues to be a favoured choice for rice importing countries. For 100 percent broken white rice exports remain flat with bullish sentiments. Coverings continue to be firm for short positions.

Indian Rice sees a push from authorities for exports

APEDA to focus closely on promoting Indian rice in international markets.

Indian parboiled rice exporters saw a bearish tone towards the end of last week as domestic rice prices decreased extensively on account of limited coverings by foreign rice buyers. Combined with oversupplies and volatility in forex markets, rice traders believe that this bearish rally will continue for a while. Rice millers have also indicated a lower rice demand in the local section which will add to the bearish sentiment of rice price for the near period. One Indian rice exporter said that IR-64 5 percent broken white rice demand for new rice crop remains firm from Malaysia and Singapore, while old rice crop movement and arrival remains slow for most markets.

Indian non-basmati rice exports gained momentum

Additional port in India was opened to ease rice export cargo congestion.

One Indian rice trade official said that China’s normal rice suppliers, such as Thailand, Vietnam, Myanmar and Pakistan, have inadequate surplus rice supplies for export and were offering at least $30 per MTS higher compared to Indian rice prices. Thailand, the world’s second top rice exporter and major rice supplier to China, experienced a drought this year 2020 that has affected the rice harvest. Thailand’s rice export in 2020 might fall to 6.5 Mn MTS, the lowest in 20 years.

Demand for Indian rice export has increased in South East Asian countries

China starts to purchase rice from India after 3 decades.

India’s rice export prices increased for the third consecutive week to their highest in more than 2 months as the rupee turned stronger and stable rice demand from top rice importing countries in Asia and Africa. One of the rice traders said that the strengthening of rupee against the dollar had a major effect on rice exports from international trades.Higher shipping costs have led to an increase in price by the rice traders. Rice buyers like China are shifting to Indian rice due to competitive rice prices.

Rice trade continues to increase around the globe

Stronger demand is seen from Asia’s top rice exporting countries.

Indian Rice exporters are seeking government involvement to safeguard margins and remain competitive, as uncertain freight costs and shortages of containers are affecting the rice trade. VK Cowl, Executive Director of the All-India American Exporters Association said that rice exporters cannot cannot absorb the increased shipping costs in their rice prices significantly for fear of losing business to other rice exporting countries. He also said that shipment on some routes has increased compared to pre-COVID time. Fees to West Asia, which accounts for 75% of the rice trade, increased about 243% from $1,200 to $1,500 per container after the blockade, While shipping rates to rice importing countries in Caribbean has increased by 344% for consignment of containers over the same period which now ranges between $4,200 - $4,500. Freight forwarders said they were 45-50% short of containers with monthly requirements of 30,000-35,000 MTS for both Basmati and Non-Basmati rice exports.

Rice exporting countries continue to face container shortages

Indian rice traders are seeking government support in transportation and marketing.

India continues to retain its position as the top rice exporting country as Bangladesh Government had previously announced 3 tenders and market observers have revealed that Government to Government (G2G) deals may be announced in the upcoming month. Bangladesh’s government plans to buy 100,000 MTS of parboiled rice and 50,000 MTS of white rice as per a senior official in Bangladesh’s food ministry. An Indian government source said that India could offer parboiled rice at around $407 per MTS and white rice at roughly $417 per MTS on a cost, insurance, and freight (CIF) basis. The rice prices are about a third lower than the other rice exporting countries Thailand and Vietnam. The Indian government official also added that the total rice shipment is expected to be rendered in the first quarter of 2021 from the  Haldia port in India’s eastern state of West Bengal, which borders the rice buyer Bangladesh.

Asia: Bangladesh to import rice from India

Bangladesh lowers import duty on rice up to 25%.

Industry sources have told news agency Reuters that the 3rd top rice exporting country, Vietnam has started purchasing the rice grain from India, Top rice exporting country, for the first time in decades after local rice prices soared to their highest in 9 years amidst limited domestic rice supplies. The rice purchases emphasize shrinking rice supplies in Asia, which might boost rice prices in 2021 and even drive traditional rice buyers from Thailand and Vietnam to switch to India. Industry representatives say that Indian rice exporters have been contracted to trade 70,000 MTS of 100 percent broken white rice for January 2021 and February 2021. Deliveries were seen roughly at $310 per MTS on a free-on-board (FOB) basis. B.V. Krishna Rao, president of the Rice Exporters Association said that for the first time India is exporting rice to Vietnam. Indian rice prices are competitive. The vast rice price difference is making rice exports possible.

Vietnam begins to purchase Non-Basmati rice from India

IGC has estimated Indian rice production to be around 120 Mn MTS.

Indian Parboiled rice exports continued to see a bullish rally as rice paddy availability in the Central India region decreased causing rice millers to increase rice prices. The rice demand remains above normal and rice traders are getting inquiries from rice importing countries in the West African region. The Indian Government paddy procurement reached 532.79 Lakhs MTS until 9th Jan 2021; this surge is likely to be 25 percent above last 2019 procurement. Rice export traders anticipate price stabilization over the next 6 months. While Indian white rice exports saw a flat to bullish outlook for most of the week and rice traders maintain a bullish outlook as fresh rice demand is seen from rice importing countries in Southeast Asia.

The continuous import of rice to boost local supply

Fresh demand is seen from Southeast Asia for Indian white rice.

Indian parboiled rice export saw extreme instability and most rice traders maintained a bullish rally for the long term. As parboiled rice demand has firmed up on account of private rice traders for Bangladesh, Indian rice exporters see a better opportunity in rice trade with Bangladesh. Rice importing country, Bangladesh has been a favourable option for rice traders in India provided the quicker completion of delivery along with payment collections. The possibilities of margin leakage are minimum as the rice exports are usually done by road therefore the reliability on containers is minimal. White rice export remains soft as fresh rice paddy arrivals continue. Rice exporters estimate a good rice demand in the by-product market as the rice price remains soft to bullish with low volatility, for primary products (5% & 25%) rice traders maintain a bullish position for the near term.

Indian Government plans to boost rice exports

India's rice export marked 1.5 MM MTS for Dec 2020.

Non Basmati

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Rice - Non Basmati

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