India rice exports could hit 7-year low on weak demand, higher prices: Industry :
MUMBAI: India's rice exports are likely to fall to their lowest level in seven years, industry officials say, as weak demand from African countries weighs and shippers absorb the absence of government incentives that supported previous sales.
Lower shipments from India will help rivals such as Vietnam and Myanmar in raising their exports, according to Indian exporters, but could also force Prime Minister Narendra Modi's government to increase buying from farmers, even as it struggles to liquidate last year's stocks.
Inventories have been piled up in Africa," said Nitin Gupta, vice president for Olam India's rice business. "A lot of Indian demand has been diverted to Myanmar and China as Indian prices are out of parity."
The south Asian country could export 10 to 11 million tonnes of rice in the fiscal year 2019/20 that started on April 1, Gupta said.
India exported 11.95 million tonnes of rice in 2018/19 through March 31, down 7.2% from the previous 12 months, even though the country provided incentives for exports of non-basmati rice for four months.
The country exports non-basmati rice to mainly Bangladesh, Nepal, Benin and Senegal, and premier basmati rice to Iran, Saudi Arabia and Iraq. In basmati rice exports, India competes with Pakistan, while in non-basmati rice exports rivals are Thailand, Vietnam and Myanmar.
