India may export 75,000 tonnes of broken rice to three African nations

India will likely export 75,000 tonnes of fully broken white rice under government-to-government (G2G) deals to Senegal, Gambia, and Djibouti soon, traders have said.

The move follows the Indian government’s decision last week to permit exports of fully broken white rice — which were banned from September 8, 2022 — on the basis of permission given by it to other countries to meet their food security needs. “However, the policy is yet to be announced by the Directorate General of Foreign Trade,” said Rajesh Paharia Jain, a New Delhi-based trader.

The development comes amidst demand from African countries which look to India for supply of fully broken white rice, besides parboiled rice.

Earlier in March, the government permitted exports of 2.5 lakh tonnes of broken rice to Senegal and one lakh tonnes to Gambia. In addition, about 10,000 tonnes of the rice variety were permitted to be shipped to Djibouti, Ethiopia.

The development augurs well when demand for rice from SouthEast Asia is a bit slack. The slackness in demand is despite Indian prices being far more competitive to the rates offered by Thailand or Vietnam or Pakistan.

ENQUIRIES TAPER

“Though we are competitive, Indian rice prices have gained of late. But overall, prices are a bit unstable,” said VR Vidya Sagar, Director, Bulk Logix. “After we shipped a good quantity to SouthEast Asia, enquiries have tapered down now,” said M Madan Prakash, President, Agri Commodities Exporters Association (ACEA). “For unexplained reasons, there is some dullness in rice exports to SouthEast Asia. Maybe, they will pick after June,” said S Chandrasekaran, a Delhi-based trade analyst. Jain said 5 percent broken white is ruling at $480 a tonne and 25 percent broken at $460. The offer price includes the 20 percent export duty. In contrast, Thailand is quoting these varieties at $511 and $494, respectively. Vietnam is offering these at $498502 and $48387, respectively. These prices are free onboard (FOB).