Money News

India's October rice exports drop 42% y/y on weak demand

FILE PHOTO: A worker packs a sack filled with rice on the outskirts of Ahmedabad, February 27, 2015. REUTERS/Amit Dave

MUMBAI (Reuters) - India’s rice exports in October fell 42% year-on-year to 485,898 tonnes, government data showed on Thursday, due to weak demand from African countries for non-basmati rice.

Smaller shipments from India could help rivals such as Thailand, Vietnam and Myanmar to increase their exports, according to Indian exporters.

“Export demand is very subdued,” said Nitin Gupta, vice president of Olam India’s rice business.

New Delhi mainly exports non-basmati rice to Bangladesh, Nepal, Benin and Senegal, and premier basmati rice to Iran, Saudi Arabia and Iraq.

India is the world’s biggest rice exporter but its shipments have plunged 28% in the first seven months of the 2019/20 financial year, which started April 1, to 4.85 million tonnes, the data showed.

Indian rice has been losing competitiveness in the world market due to higher local prices, said B V Krishna Rao, president of the Rice Exporters Association (REA).

The government needs to provide subsidies for the overseas sales or exports would remain weak, he said.

Reporting by Rajendra Jadhav; Editing by Sriraj Kalluvila