Delhi decision to pressure-cook rice importers
The Centre’s decision to ban non-basmati rice exports is likely to stoke inflation in importing countries that have few substitutes for rice.
By TNN |
KOLKATA: The Centre���s decision to ban non-basmati rice exports is likely to stoke inflation in importing countries that have few substitutes for rice. Economies likely to take the biggest hit are African countries such as Cameroon, Cote d���Ivoire, Nigeria, Somalia and South Africa, which are the top non-basmati rice importers from India. This is the upshot
of a Standard Chartered Bank global commodity outlook released on Tuesday.
Faced with rising food prices internally, major rice exporters including Egypt, Vietnam and India have decided to put curbs on rice exports over the coming 2008-09 season.
The MNC bank has noted in its report that the global rice market continued to be constrained by strong global demand and tight exportable supplies. ���Rice futures have been buttressed by recent announcements by major rice exporters including Egypt, Vietnam and India, limiting their exports over the coming 2008-09 season,��� it said, adding that continuing concerns over exportable supplies should keep rice prices above $20 per hundredweight (cwt) for the most of the year.
Since February this year, the rough rice near future on the Chicago Board of Trade (CBoT) has risen 30% to $20 per cwt, up 97% year-on-year.
���A stronger Thai baht ��� Thailand is the largest rice exporter ��� against the dollar is also helping to keep rice prices high in dollar terms. We retain the view that the market will remain tight over the coming year despite the reported decline in Asian per-capita consumption,��� the bank said. There were reports suggesting that many countries in Asia are experiencing a fall in per-capita rice consumption as people are going for diet diversification as a result of higher incomes.
Last year, India exported 4.5 mt rice, or 20% of traded rice, of which nearly 1 mt was basmati. Saudi Arabia, although the largest importer of Indian rice, will likely be affected to a lesser extent as merely 20% of its rice imports from India are non-basmati. India put a ban on non-basmati rice exports. By contrast, countries like Cameroon, Cote d���Ivoire, Nigeria, Somalia and South Africa as well as Bangladesh are top non-basmati rice importers from India, accounting for over 60% of the country���s non-basmati rice exports. The six countries imported over 2.01 mt of rice from India in 2006-07, of which 2 mt was non-basmati, according to the report released by the bank.
of a Standard Chartered Bank global commodity outlook released on Tuesday.
Faced with rising food prices internally, major rice exporters including Egypt, Vietnam and India have decided to put curbs on rice exports over the coming 2008-09 season.
The MNC bank has noted in its report that the global rice market continued to be constrained by strong global demand and tight exportable supplies. ���Rice futures have been buttressed by recent announcements by major rice exporters including Egypt, Vietnam and India, limiting their exports over the coming 2008-09 season,��� it said, adding that continuing concerns over exportable supplies should keep rice prices above $20 per hundredweight (cwt) for the most of the year.
Since February this year, the rough rice near future on the Chicago Board of Trade (CBoT) has risen 30% to $20 per cwt, up 97% year-on-year.
���A stronger Thai baht ��� Thailand is the largest rice exporter ��� against the dollar is also helping to keep rice prices high in dollar terms. We retain the view that the market will remain tight over the coming year despite the reported decline in Asian per-capita consumption,��� the bank said. There were reports suggesting that many countries in Asia are experiencing a fall in per-capita rice consumption as people are going for diet diversification as a result of higher incomes.
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Export restrictions by India, Egypt and Vietnam could potentially cause global rice trade to drop 20% year-on-year. The bank indicated the potential drop in trade volumes and fear that other major exporters could follow suit is underpinning the bullish sentiment in the market.Last year, India exported 4.5 mt rice, or 20% of traded rice, of which nearly 1 mt was basmati. Saudi Arabia, although the largest importer of Indian rice, will likely be affected to a lesser extent as merely 20% of its rice imports from India are non-basmati. India put a ban on non-basmati rice exports. By contrast, countries like Cameroon, Cote d���Ivoire, Nigeria, Somalia and South Africa as well as Bangladesh are top non-basmati rice importers from India, accounting for over 60% of the country���s non-basmati rice exports. The six countries imported over 2.01 mt of rice from India in 2006-07, of which 2 mt was non-basmati, according to the report released by the bank.
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