Why India’s easing of export curbs is important to global rice trade

By Reuters

India has removed most of the export curbs it imposed on rice shipments in 2023 with immediate effect, as above-average monsoon rains are expected to boost crop yields amid overflowing stocks in state granaries.Here are some facts explaining India’s importance to the global rice trade:

India accounted for more than 40% of the world’s rice exports in 2022, a record 22.2 million metric tons out of a total of 55.4 million.India’s exports were bigger than the combined shipments of the world’s next four biggest exporters: Thailand, Vietnam, Pakistan and the United States.

India exports rice to more than 140 countriesTop buyers of Indian non-basmati rice include: Benin, Bangladesh, Angola, Cameroon, Djibouti, Guinea, Ivory Coast, Kenya and Nepal.

Iran, Iraq and Saudi Arabia mainly buy premium basmati rice from India.Restrictions in 2023 cut India’s rice exports by 20% to 17.8 million tons and exports in the first seven months of 2024 were down by a quarter from a year earlier.

India’s lowered exports forced Asian and African buyers to switch to Thailand, Vietnam, Pakistan, and Myanmar.The sudden surge in demand amid limited surpluses sent export prices in these countries to their highest levels in more than 15 years.

This article has been republished from The Business Standard