Rice trade continues to increase around the globe
Stronger demand is seen from Asia’s top rice exporting countries.
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.
Indian non-basmati rice traders are still facing a crisis in the container segment fuelled with congestion at major transhipment ports, this has led to a major shift to breakbulk mode. The adoption of this mode has its limits to only two major ports in India i.e., Kandla and Kakinada giving rice exporters a limited opportunity to fulfill the shipment requirements. Both these ports are facing great traffic for rice importing countries from the West African region. Indian rice traders and rice millers are slightly impacted by the ongoing farmer’s protest which has impacted the arrival of new harvest in many regions and has also impacted transportation movements from the North Indian Region.
In Bangladesh, the government will import 50,000 MTS of rice from India at $404.35 per MTS. This trade made by the government is to stockpile the local rice reserve of the country.
An official from Myanmar’s Ministry of Commerce said that the Myanmar government intends to accomplish the rice export target of 2 Mn MTS of rice and broken rice in fiscal year (FY) 2020-2021 beginning October 2020. Myo Thu, director of the ministry's trade promotion department said that International rice trade depends on local market price and rice export demand. Myanmar succeeded to export around 2 Mn MTS of rice in previous fiscal years. According to the data from the Myanmar Rice Federation, the country exceeded its rice export goal of 2.5 Mn MTS in the last FY 2019-2020.
Vietnam's rice export price for 5 percent broken white rice was unchanged at $470-$490 per MTS. One rice trader said that the rice export trade activity has slowed down due to weak rice demand. The rice trader also noted that they are anticipating that rice export will increase during the first quarter of the year 2021 due to rising demand from rice importing countries, the Philippines, Africa, and China. Another rice exporter said that Vietnam and China are putting up a hotline to facilitate bilateral trade of agricultural commodities, including rice, after recent disruptions due to the coronavirus pandemic. Vietnamese rice traders are also looking forward to increasing rice exports of fragrant rice to the European Union after a free trade agreement took effect between Vietnam and the bloc in August 2020, according to the Ministry of Industry and Trade.
Thailand's rice export price for 5 percent broken rice increased to $485-$516 per MTS from $480-$516 per MTS from the previous week because of low rice supplies.
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