Rivals gain from India's non-basmati export ban

India’s ban on export of non-basmati rice has been a boon to competitors like Thailand whose shipments have risen by 1.7 million tonnes in 2008, the US Department of Agriculture (USDA) has said.

“Thailand, Vietnam, Pakistan, Burma and Brazil collectively expanded exports by 1.7 million tonnes in 2008, much of which went to historically Indian markets in Africa,” the USDA said.

Exports from Thailand, the world’s biggest rice exporter, grew the most, it said, adding that Vietnam, Pakistan and other also boosted their sales.

Consequently, India has been knocked off to the fourth position, while Pakistan has moved up by one place to third in the list of top rice exporters in 2008-09, the USFDA has said. India had baned non-basmati rice exports in April 2008 to contain rising inflation. It, however, allowed shipping abroad of about 2 million tonnes via diplomatic channels.

Stating that India is an erratic trader, the USDA said, “It is unclear when India will re-enter the non-basmati market, though reportedly, it could be soon.”

“However, it remains to be seen whether India will regain market in West Africa and other traditional markets that have found new suppliers or increased their own production.”

The USDA further said that Indian exports to West Africa plummeted by 1.2 million tonnes in 2008 and “are not expected to recover much in 2009.”

The policy changes announced by India had resulted in rise in global prices last year, it said. However, the panic had largely abated, prices had fallen and both stocks and consumption in the rest of the world were rising, it added. India is projected to produce about 99.37 million tonnes of rice in the 2008-09 season.