The Indian government had imposed tariffs to prevent inflation in the country, and this led to a decrease in the area under cultivation during last year's kharif season.
The global demand for rice is on the rise, and this presents a promising opportunity for rice exporters. The recent imposition of export duty on rice in India had led to a decrease in demand for the product, but now the market is picking up again. This article explores the possibility of increasing rice exports in light of the growing global demand.
India's rice traders are witnessing a surge in demand for rice in the global market. Prior to the imposition of export duty, the price of rice in India was US$330 per tonne. However, after the imposition of duty, the price rose to $440 per tonne. Despite this increase in price, buyers are still interested in purchasing rice.
The Indian government had imposed tariffs to prevent inflation in the country, and this led to a decrease in the area under cultivation during last year's kharif season. However, with the increase in demand for rice, buyers are showing renewed interest in Indian rice, even though it is cheaper compared to Thailand's rice, which is priced at 500 US dollars per ton in the international market.
According to BV Krishna Rao, the president of the Rice Exporters Association of India, the growth in global demand will help India export 15.5 million tonnes of non-basmati rice. This is only 10 per cent less than last year's exports. International sales are expected to be around 12-13 million tonnes, which is still a significant increase.
The increase in demand for rice presents a promising opportunity for rice exporters. However, it is important to note that the growing season for wheat is approaching, and high daytime temperatures could adversely affect wheat crops. The meteorological department has issued an advisory to farmers warning them of the potential damage to crops and horticulture due to high temperatures.
In conclusion, the growing demand for rice in the global market presents a promising opportunity for rice exporters. Despite the recent imposition of export duty, buyers are still interested in purchasing Indian rice. However, it is important to take into account the potential effects of high temperatures on crops and horticulture in the coming months. By keeping these factors in mind, exporters can take advantage of the growing demand for rice and increase their exports.
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