Rice

Sugar exports from India may face challenges in the 2021-22 season even despite the fact that 1.8 Mn MTS had already been contracted at the beginning of the season itself. As per the Secretary for Food and Public Distribution, Sudhanshu Pandey. Addressing the All-India Sugar Traders Association (AISTA) on global sugar trade, he said that last year India was able to export 7.2 Mn MTS of the sweetener to several destinations and nearly 50% of this went to three sugar importing countries — Indonesia, Afghanistan, and Sri Lanka. Pandey said that these sugar importing countries have different dynamics this year. Thailand’s production is expected to increase this time and so Thailand sugar will try to find a possibility to trade with Indonesia. Indian sugar will have to compete in the Indonesian market again. Instability in Afghanistan may affect India’s sugar exports to the country and Sri Lanka has a massive foreign currency shortage. And therefore, a new plan will have to be thought of by the industry so that the export trade market is also served. Pandey said that India is planning to divert about 3.5 Mn MTS for ethanol production in 2022 and by 2023, the goal is that at least 6 Mn MTS of sugar should be diverted for ethanol production. But at the same time, India is also considering new market opportunities for sugar export.

Sugar trade across the globe

Datagro consultancy stated that Brazil's new sugar season will recover as rains return.

India's non-basmati rice exports for the year 2022 may see a lower export output in comparison to 2021 since all the major producing countries in the world including Myanmar, Thailand, Vietnam, Bangladesh, and Pakistan have witnessed a good crop yield in the ongoing season of 2021. As per B V Krishna Rao, president of Rice Exporters Association, most of these countries have seen an improvement in terms of economic activity and reduction of lockdowns, drought-like situations, and transportation bottlenecks. This is stated to allow overseas buyers of rice to explore more origins. He also added that in 2022, since the international production of rice is projected to remain higher, Indian rice exports may not stay firm like in 2021.

Arrivals of fresh rice crops in all the rice-producing countries

In 2022, global rice production is estimated to remain higher.

The 2021-22 marketing year sugarcane season guarantees to be a historical one for the sugar trade. With sugar prices turning bullish in both local and international markets, the sugar trader looks forward to seeing strong exports without the need for government subsidy. Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories stated that the decision of the central government to move forward for ethanol has also shown to be a game-changer for the industry and will support its function independent of any government assistance or subsidy. he also added that 34 lakh MTS of sugar were estimated to be diverted for the making of the ethanol this 2021, as compared to 22 lakh MTS diverted last 2020.

Sugar Traders looks forward to having a strong export for M.Y 2021-22

India: sugar prices turn bullish in both local and international markets.

Top rice exporting country, India rice export price for 5 percent broken parboiled rice was estimated at $354 to $360 per MTS this week, their lowest since mid-August 2021, decreased from $359 to $364 per MTS from the previous week. One Indian rice exporter said that rice importers are delaying purchases since prices have been dropping for the past few weeks. They are anticipating a further decrease in the rice export prices.

Rice Importers of Indian rice are looking forward to further price drop

India's rice export prices dropped to their lowest in 3 months.

India’s Rice export prices dropped this week to their lowest since December 2016 as a weaker rupee allowed traders to reduce rates amidst rising domestic rice supply from fresh harvests. One rice trader said that India has again become competitive in the international rice market. Rice exporters believe this market improvement will favor trades for the near term as well as rice export demand at this point have a good maturity advantage.

India’s competitive rice export prices

Foreign exchange continues to favor rice export pricing.

Indian sugar traders are still waiting for international sugar prices to increase to enter further export deals, as per the trade body ISMA. Due to the drop in international raw sugar prices, not many export deals occurred in the last one month, further than the 38-40 lakh MTS of export agreements that have already been signed. Indian Sugar Mills Association (ISMA) also stated that, given that roughly 9 months are remaining for the present season, sugar traders are still waiting for the appropriate time to enter further trade contracts. During the October-November period of the current 2021-22 season, sugar exporters traded around 6.5 lakh MTS, higher than 3 lakh MTS in the year-ago period.

Sugar exporters anticipate global sugar price hike

Indian sugar exporters are still waiting for the right period to enter further export deals.

Sea freights for containers have begun increasing once again after remaining stable for the last quarter of 2021, increasing 10 percent in the 1st week of January 2022 resulting in new uncertainties for agricultural commodity traders. One rice exporter said that the waiting time of deliveries at ports has also soared to more than a month from 15 days. Indian non-basmati rice in the international market witnessed a bullish turn over the course of the week. The strengthening of the Rupee combined with trade aversion fears has led to this bullish sentiment. Rice export movements have remained negligible with challenges to only complete previously closed agreements. Rice exporters have also stated that correctional actions may seep in post-elections which are due in February 2022 across major states of India.

Rising ocean freights imposes a challenge for rice exporters

Indian rice traders worry over surging freight rates.

According to the industry body, Indian Sugar Mills Association, the country's sugar exports during the period of October to December 2021 increased nearly four-fold to 17 lakh MTS on greater international demand. ISMA also added that 38-40 lakh MTS have been contracted by sugar mills for exports. Sugar Millers are now waiting for global prices to improve for more deals. India’s sugar marketing period is from October 2021 to September 2022. ISMA Stated that, as per market reports and port data, about 17 lakh MTS of sugar have been physically exported throughout the period of October to December 2021. During the same period in the previous year, an estimated 4.5 lakh MTS of sugar were traded.

India sugar export increased nearly four-fold during the period of Oct'21-Dec'21

India’s sugar production reached 11.6 million MTS up until the end of December 2021.

Shipping prices have begun increasing again due to another wave of COVID-19, a sudden rise in crude oil prices, and an immense bottleneck at several ports in China, the United States, and Europe. Industry sources estimate a 15% to 20% increase in sea freight costs for outbound cargo from Asia to the North American or European countries due to unforeseen delays in cargo clearance at various ports. In Asia, trans-shipping ports in Singapore and Hong Kong are immensely congested with many vessels waiting to take dock for their re-route. With this rise, the average export cargo price for a 40-foot container from Mumbai, India is estimated at USD $4,900 and that from Mundra and Chennai at USD $5000 and USD $5200 respectively. International shipping rates had reached a record high in November 2021 but were reduced later due to a decreasing number of new COVID-19 Cases.

Rice exporters face new challenges with rising shipping costs and congestions

Seaports worldwide continue to be congested as they clear backlogs of shipping containers stuck on harbors.

Indian sugar exports may possibly reach a record high of 7.5 Mn MTS in the current marketing year 2021-2022 as against the estimated 6 Mn MTS. However, sugar traders do not anticipate a significant rise in local sugar prices. A rise in the volume of sugar diverted to ethanol production has led to a shortage worldwide which Indian traders are fulfilling. As per Sudhanshu Pandey, secretary, Department of Food & Public Distribution Indian sugar export is anticipated to increase.

Indian Sugar sees an aggressive demand in the international market

A rise in the volume of sugar diverted to ethanol production has led to the increase of Indian sugar export.

Rice export prices for 5 percent broken parboiled rice varieties from India, increased to $371-$378 per MTS from the previous week's $370-$376 per MTS. One Indian rice trader said that rice buyers are aiming to stockpile due to the increase in wheat and corn prices and hence the demand is increasing for rice.

The increasing rice export prices across the globe

Major rice exports markets see a bullish run on high demand.

India is ready to meet any additional requirement for wheat from buyers in Asia, and from countries in Europe, the Middle East, and North Africa. Ukraine is being one of the major producers of wheat, but exports have been disturbed since the Russian invasion in February 2022. Senior civil officer at the Ministry of Consumer Affairs, Food and Public Distribution, Sudhanshu Pandey said that the Indian market has adequate supplies, and India is in a secure position to fulfil requirements from wheat importing countries.

Global demand for Wheat on the rise

India estimates export opportunities to meet the global deficit.

Non Basmati

Privacy policy

Terms & Conditions

Factrade is a Trade facilitator that enables Buyers and Suppliers to trade with transparency and confidence by providing them high quality market information about the latest prices and market trends to help the stakeholders make the right choice.

Rice - Non Basmati (India)

Rice - Non Basmati (Pakistan)

Trending News