Rice exports: Thailand likely to offer competition to India this year

Thailand is probably to give stiff opposition to India in the global rice current market this calendar year with its production rebounding from the lows witnessed in 2019 and 2020. It is India’s only competitor in the parboiled segment of the rice trade. 

According to the US Office of Agriculture, Thailand’s rice output through the 2021-22 year is projected at 20.8 million tonnes (mt) in comparison with 18.8 mt in 2020-21 and 17.65 mt in 2019-20. Manufacturing is predicted to recover on much better availability of drinking water, an issue for the duration of 2019 and 2020. 

Weaker baht

As a end result of the rise in generation, Thailand’s rice exports this yr are likely to be 31 for each cent increased at 8 mt tonnes against 6.1 mt very last year, said USDA’s International Agricultural Provider (FAS) put up in Bangkok. Better exports have been forecast primarily in look at of a weaker Thai baht. 

“Thailand parboiled rice charges have dropped to match with Indian price ranges. They are $20-30 more than Indian prices,” mentioned Nitin Gupta, Vice-President, Olam Agro India Ltd. 

Currently, Indian parboiled rice 5 per cent damaged is quoted at $370-376, when Thailand is quoting $395. “Thailand’s exports are envisioned to improve to 8 mt from 6-6.5 mt last 12 months,” Gupta explained. 

70% of exports to Africa

“Some potential buyers discover it far better to acquire Thai rice as its high-quality is rated superior than Indian range. Hence, volume of exports is likely to maximize,” claimed Vidya Sagar VR, Director, Bulk Logix. 

The USDA’s Bangkok FAS Publish stated Thai parboiled rice was more aggressive with Indian parboiled rice and some 44 for every cent of exports very last year went mostly to South Africa, Benin, Cameroon, and Angola. Of this, 70 for each cent was parboiled rice.

“Higher domestic rate for parboiled rice and issues of transportation have established uncertainty over Indian parboiled exports,” stated Sagar.

The movement of parboiled rice from Chhattisgarh to Kakinada ports in Andhra Pradesh was afflicted thanks to a lack of rail rakes, however the condition has started to simplicity. 

On the other hand, the Union Government is procuring parboiled rice in Chhattisgarh at nearly ₹20 a kg and featuring it to traders at ₹24, creating items complicated for exporters, the Bulk Logix director said.

Stiff interior opposition

“There will be a strong need for (Thailand) white and parboiled rice as traders speculate that Thai rice export rates will keep on being extra interesting than Vietnamese and Indian rice,” reported the USDA Bangkok FAS Article.

“Indian parboiled exports could also experience complications due to the fact the Prime Minister Garib Kalyan Anna Yojana will conclude in March and some shippers could uncover it complicated to source,” explained an marketplace supply on the condition of anonymity.

Nonetheless, The Rice Exporters Affiliation President BV Krishna Rao reported India will be capable to acquire on Thailand in the global rice market place. “The dilemma for Thailand is that it has only a handful of exporters delivery rice, whereas there are several in India. Also, rice is exported from many ports in India,” he stated.

While India enjoys a logistical gain as it is nearer to African locations, there is extreme competitiveness between exporters in the country. “Indian exporters are hoping to undercut just one one more,” Rao reported. 


In accordance to the TREA president, barring nations around the world these as the Philippines and Malaysia Indian rice is now acknowledged broadly in almost all countries. “Recently, the Commerce Ministry helped perform a buyer-vendor satisfy with the Philippines Ambassador, who has agreed to appear into our ask for,” he said.

The trouble with exporting to the Philippines is that Filipinos desire “soft” rice which Vietnam provides, whereas Indian the Indian range is “hard”. 

On the other hand, Malaysia prefers Pakistan rice, which is straightforward to mix with domestically-grown rice. “Pakistan rice is 6.2 mm in size and can be easily combined with Malaysia’s 6.4 mm rice. Indian rice length is 5.-7-5.8 mm and so loses out,” Rao said.

The TREA president also expects China to acquire more broken rice from India, nevertheless there were challenges of its price ranges mounting in circumstance of a surge in corn charges. 

No 1 position to continue

Even so, the Indian rice trade is unanimous that India’s position as the amount one particular rice exporter will remain unchallenged. 

“India’s capacity to provide each parboiled and normal white rice at competitive costs will also propel exports to Sub-Saharan Africa exactly where imports are projected to increase,” the USDA mentioned.

As of February 11, Indian white rice 25 per cent damaged is quoted at $347 a tonne in contrast with Vietnam’s $389 and Thailand’s $403 (both of those for 5 for every cent damaged), the International Grains Council data confirmed. Rice export costs are 12 for each cent decrease in India, 24 for every cent in Vietnam and 25 for each cent Thailand calendar year-on-yr. 

India’s rice exports have also been aided by larger stocks with the Food stuff Corporation of India, which as of January 1 was 22.15 mt of rice and 47.36 mt of paddy (31.72 mt of rice). 

Record rice output of 118.87 mt in 2019-20 and 122.27 mt final time (July-June) has also aided the report shipments.

Posted on

February 15, 2022