2024-10-13 22:05:00
India lifted most rice export restrictions at the end of September. A measure that rapidly caused prices on the market to collapse and boosted world trade.
India no longer had much choice with the arrival of the new harvest in October, which promises to be plentiful and which, according to the Food Corporation of India, will increase supplies by about 40% compared to last year in the same period . A level that poses logistical constraints and no longer justifies continuation limit exportsexplains a rice trader.
With its announcement, India revitalized the market: with a few exceptions, all prices collapsed. Thai rice, nicer than Indian rice, lost about 50 dollars. Even Vietnamese, which can afford to be more expensive given its quality, has started to decline.
Non-basmati white rice at $490 a ton
Pakistan has directly aligned itself with Indian supply prices. As for rice from Burma, the price even dropped to compensate for the increase in freight prices from the port of Rangoon.
The new benchmark is $490 a tonne, India’s minimum price for non-basmati white rice. But the desire of Indian exporters to resume their business is so great, after a year and a half of virtual technical unemployment, that some would try to circumvent this official price to be even more competitive.
No lifting of restrictions on broken rice
The African continent, which is 40% dependent on imports for its rice supply, is expected to benefit from India’s decision, but to varying degrees depending on the country.
In Cameroon, where we tend to consume white rice with a low percentage of brokenness, we are very happy about it” reversal of situation that changes everything” to use the words of Minister of Commerce which invited importing companies to pass” substantial orders to guarantee supply at normal prices”.
Where broken rice is consumed most, in Senegal, Gambia, Guinea-Bissau and Mali, the impact will perhaps be less evident: India did not lift restrictions on breakagesestablished in September 2022. Purchases, which had never stopped completely, will have to continue through government-to-government agreements and therefore at a price that will depend on the negotiating capabilities of the purchasing countries.
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