Loss of one means gain of other in perfect competition market. Vietnam and Thailand are two main competitors of India in global rice market. Current fiscal can be year of bonanza for Indian rice export business on account of drop in yield and rise in production cost of competitors Thailand and Vietnam. $420 a tonne is price of Vietnamese and Thai rice in global market, which is $60 higher compared to Indian rice. That’s not all, it is believed that the gap will only widen with time. Expected robust kharif crop in India may enable high returns for exporters. Last year’s record breaking 21 MT rice exports no way looks insurmountable this year and according to AIREA president, this year’s export figures will surpass last year’s figures by a little bit.
Indian Rice Export to Exceed Rice Exports From Vietnam, Thailand and Pakistan Combined
Rice outflow from India is expected to be 41% of total global rice exports. Next three biggest rice exporters Pakistan, Vietnam and Thailand are expected to export less than India collectively; such will be the domination of India in global rice market.
High Cost of Production And Transportation Making Prices of Competitors of India Uncompetitive
Key rice producers like China, Vietnam and Thailand are perennially worried about losing competitiveness to India on account of high production and transportation cost and keep cribbing that Indian rice is cheaper compared to their rice.
India Largest Exporter For A Decade Continuously
Earning of India from rice outflow was $8.8 billion in 2020-21 and rose to $9.6 billion in 2021-22. 12% rise in very first quarter of this fiscal was observed and exports reached $2.6 billion by value, continuing the rising trend. APEDA chairman claimed confidently that sustainment of export momentum this fiscal will be made possible by exporting quality rice. On July 1 2022, rice stocks lying with FCI was 31.7 MT, which is more than double the buffer norm of 13.54 MT. 31.7 MT lying with FCI doesn’t include 15 MT (million tone) still to be received from rice millers by FCI (Food Corporation of India).
Good Monsoon in July Boost to Rice Production
Rice sowing was definitely lagging compared to last year for some time but monsoon rains intensified at the start of July in rice producing states accelerating rice sowing to the extent that can ensure rice sowing levels to be normal. Contrary to belief of skeptics, India is able enough to fulfill the needs of global market judiciously.
Wide Export Market For Indian Rice
Rice importers from 150 countries have imported Indian rice in 2021-22. Arguably no rice exporting country can match the range of market that India can boast of. It is difficult to exploit such wide ranging market to the fullest by trading the traditional way. So, many big and small rice exporters are shifting their export business to online B2B ecommerce platforms. Rice Exports from India needs ecommerce marketplace with buyer database that is not only huge but also wide ranging. Prime example of such an ecommerce platform is tradologie.com next generation B2B ecommerce platform with database of tens of thousands of buyers from more than 100 countries.
