After several years, India to meet huge overseas rice demand

India is poised to meet huge overseas demand for rice after sevearal years of bumper harvests. On March 1, rice stockpiles in government warehouses stood at 33.2 mn t, three times the buffer stock target. Depreciation of the rupee against the dollar is expected to help Indian exporters stay competitive against Thailand and Vietnam.

Market sentiment remains weak in in and arrival pressure keep the non-basmati and basmati market amply supplied.

Government may decide to free export of wheat and rice after India gathers a record foodgrain harvest of 252 million tonnes. Chinese authorities have given permission to export of Indian basmati after a six-year tussle over phytosanitary norms.

Once a quarantine certificate is agreed upon by both sides, Chinese government will circulate to all ports so that Indian cargoes can be permitted. Pakistan already has access to the Chinese market.

Global ending stocks of rice are projected at 103.3 mn t, up 5 million tonnes over 2010-11.