News Details

Challenging times for Indian rice exports - Potential new markets


With China emerging as an export giant and countries like Pakistan, Thailand and Vietnam hampering the market for Indian rice in Asia and Africa, countries like Egypt, China, Mexico, Malaysia, Indonesia and the Philippines could be potential new markets for Indian rice exports, according to a market update by Cogoport, India’s leading online logistics marketplace. Before other countries expand their market share, there is merit in establishing trade relationships, the update says.


According to the market update, global rice production is expected to see a decline, as smaller crops are expected in the United States, North Korea and Thailand. India is expected to see a drop in non-basmati rice exports in 2019 while Basmati rice exports are expected to grow but at a slower rate in 2019. 


Mr Nikhil Singh, CEO of Rajputana Rice—shipping 100 containers of rice monthly to West Africa and also a Cogoport customer—says, “Rice exports can be challenging. Exporters face liquidity issues as payment can take months to come and competition from high quality and cheaper Pakistani and Thai rice is increasing.”


Another Cogoport customer, Mr Vishal Agrawal, CEO of Saya Overseas, who ships rice to African and Gulf countries, adds: “We used to ship 60-70 containers monthly. Now because of the challenges, we’re moving about 40 to 50. The economy is slowing down and there is tough competition from other countries. Pakistan, Thailand and Vietnam are offering better rates. There are losses because of defaulters in this industry. Competition among rice exporters is also increasing. 


“Every other manufacturer is now becoming an exporter and while manufacturing exporters get the benefit of subvention scheme, merchant exporters do not.”


In light of the challenging times ahead for the rice industry, Mr Kunal Rathod, Co-founder and Head of Growth, Cogoport, comments, “Indian exporters face stiffer competition now as China turns into a low-cost rice exporter while higher tariffs on non-basmati rice threatens India’s chances to export to Bangladesh. Indian rice exporters need to look for potential new markets such as Mexico which is relying less on supplies from the US.


“Countries like Egypt, where availability of affordable Asian rice can fill tight domestic supply gaps, could also be potential new markets whereas countries like China, Malaysia, Indonesia and the Philippines continue to be major rice importers and can be targeted,” he added.


Mr Rakesh Kumar Singh, Vice-President of The Rice Exporters Association, an industry veteran with 45 years of experience in the rice trade, too had some advice for exporters in the industry, “We remain a strong player in rice exports to West Africa. We should now be targeting new markets like China, Malaysia and the Philippines. To avoid payment challenges, exporters should take an advance of 10-20 per cent and the balance on fax document or through the bank. If you have some money upfront, the buyer will not default.”

 

Source : Exim News Service - Mumbai, Sept. 8

EXIM INDIA PROFILE

click here!!

Search News

Currency Import Export
U.S.Dollar 75.60 74.68
U.K.Pound 95.48 93.61
Euro 84.88 83.45

As On 03rd June, 2020

more forex rates...

Currency Import Export
U.S.Dollar 76.60 74.90
Sterling Pound 94.05 90.80
Euro 84.55 81.50

w.e.f.22nd May, 2020

more custom rates...