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The major exporters of long-grained rice to the world market are India, Myanmar, Pakistan, and Vietnam. Currently, the prices for raw long-grained rice from India are hovering around 340-350 dollars on a fob basis, which is much less than other countries, giving Indian exporters an edge in African and Southeast Asian markets.
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Price Competitiveness To Boost Rice Exports From India in 2023 The major exporters of long-grained rice to the world market are India, Myanmar, Pakistan, and Vietnam. Currently, the prices for raw long-grained rice from India are hovering around 340-350 dollars on a fob basis, which is much less than other countries, giving Indian exporters an edge in African and Southeast Asian markets. Lower costs drive exports in India over competitor countries In the last few months, Myanmar and Pakistan were dominating the market and the rice from these countries was the cheapest. However, as of today, the price of rice sourced from Myanmar has increased to 385 – 400 dollars on a fob basis. There was unrest in Myanmar after the army coup in Feb 2021 weakening the export potential of the country. The domestic prices in the country increased due to the dislocation of transportation and banking services.
Thailand has changed course and moved away from long grain rice to perfumed jasmine rice, the export of which is guaranteeing good margins to the exporters of the country. And the country has ample reasons to do so. Since 2019, Thailand has been one of the most expensive origins of white rice in Asia. The margins have impacted price competitiveness considerably since the second half of 2019, rising well above $100/mt in 2020. The reasons for a rise in prices of rice in Thailand are Government policies reducing farmer subsidies and lack of old crop stocks. The uncompetitive price of Thai long grain rice is expected to continue in the coming days and months, limiting the annual exports from the country. International rice markets have not been particularly favorable to standard long-grain white and parboiled rice from Thailand. The exports of milled rice have been dwindling since 2018. Thailand’s milled rice exports in Dec 2020 was 4.2 million metric tons, which was down by 28% as compared to the previous year. The year-end total of 2019 was around 5.8 million metric tons which were down by 39% as compared to 2018. A significant percentage of exports from Thailand were specialty varieties for high-end markets, with the main export market being the US for several months in 2020 and continuing in 2021. Vietnam has not been able to overcome last year’s shortage of rice. Exports from the region have dwindled and the prices are moving around 440-450 dollars. Another market worth mentioning in this context is that of Pakistan. The country was exporting IRRI-6 rice a lot. However, the prices of a similar variety of rice from India are 20 dollars less than the rice sourced from Pakistan. In Pakistan, the cost is around 360 dollars with the comparative cost in India being 340 dollars on a fob basis. This difference in price has become detrimental for exports from Pakistan to a significant extent.
The rice exports from Pakistan both basmati and long-grained rice between July 2020 and May 2021 were 14 percent less as compared to that of the previous year. The country exported 3.3 million tons of rice in the 11MFY21 as compared to 3.87m tonnes during the same period last year.
