[PEN-L:28199] India's rice exports

["Ulhas Joglekar" <joglekarulhas@xxxxxxxxxxx>]

The Economic Times

Friday, July 12, 2002

India set to become second largest rice exporter

REUTERS

NEW DELHI: India, saddled with large grain stocks, could become the world's
second largest rice exporter after Thailand if infrastructure problems are
ironed out, traders and analysts said on Monday.

They said India was considering aggressive rice sales this year, as global
prices turned competitive, to cut grain stocks which totalled 62 million
tonnes on May 1.

"It could be touch and go and we may share the honours with Vietnam or edge
it out in the rice export market provided infrastructure concerns are
addressed," said a Mumbai-based commodities analyst.

Traders said the pace and direction of exports had been encouraging and the
country should export between 3.5 to 4.0 million tonnes of rice in 2002/03
(April-March).

"Overall shipments in April-June, the first quarter of the financial year,
have touched one million tonnes and our rice is cheaper than that of similar
origin from Thailand or Vietnam," said Sudip Basu of ITC, a leading rice
trading firm.

Basu said Vietnam, world's second largest rice exporter, could sell about
3.5 million tonnes during the year, looking at their crop pattern and
prevailing global prices.

"So, definitely, India will be in the reckoning for second place after
Thailand," said Basu.

The US Agriculture Department said in a report on Saturday that due to
lower-than expected export supplies, Vietnam's 2002 rice exports will be
much lower, perhaps by 20-25 per cent, than the government's target of 3.5
million tonnes.

The UN's Food and Agriculture Organisation (FAO) said in June that India was
expected to export 3.6 million tonnes of rice in 2002, more than double the
previous year while Vietnam was likely to maintain its export level at 3.5
million tonnes, the same as in 2000 and 2001.

Thailand is set to surpass its record 2001 exports by 100,000 tonnes,
shipping some 7.6 million tonnes in 2002, FAO said.

Thai Prime Minister Thaksin Shinawatra said on Saturday it had agreed in
principle to join forces with Pakistan to boost rice prices. Thailand will
invite India, China and Vietnam to join hands on rice exports, and make its
price fair for farmers, he said, but gave no details.

However, traders feared India's export plans could be derailed if
infrastructure problems continue.

They said congestion was causing 10 to 12 day waiting periods for rice
shipments, against the normal three to four days, at the Kandla port, and a
strike by clearing agents after a dispute with railways over demurrage
charges was adding to their woes.

"These temporary problems are leading to hardships for exporters," said
Basu.

Analysts said from October bulk export of commodities, including soymeal and
coarse cereals, would add to the volume at the ports.

Kandla port authorities said they planned to add one berth in the next few
days to boost grain exports, mainly rice.

"Some bottlenecks, like infrastructure problems, are there but all that is
getting eased off gradually," said Atul Chaturvedi of Adani Exports.

Indian firms, in the past two weeks, have sold about 100,000 tonnes of rice
to West Africa in separate deals.

Traders said demand for Indian rice from African countries and Indonesia
would grow after August. Traders are also looking at sales to Europe and
Iran, where high quality rice was needed.

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