World
African buyers lift Indian rice prices 20 percent
The Hindu BusinessLine··2 Oct
African countries are buying more Indian rice to build buffers against El Nino and war-related food risks, exporters said. Indian rice prices have risen 20 percent over recent months. Exporter Rajesh Paharia Jain said 20 vessels were anchored at once in Kakinada for about six lakh tonnes. April-July rice exports rose to 5.40 million tonnes from 4.48 million tonnes.
Prism
What It Means For You
- Exporters say some countries are buying double their usual rice volumes.
- Five percent broken parboiled rice that fetched $335 a tonne f.o.b. in May is now quoted near $390 or higher.
- Domestic Sona Masuri prices were cited at Rs 58-59 a kg, up from Rs 45-46.
What's Happening
- Ships are waiting at multiple Indian ports as African stockpiling continues.
- Freight to Jebel Ali was described as rising from $100 to $5,000 per container.
- Food Corporation of India mid-September stocks included 39.1 million tonnes of rice.
Supply Risks Exporters Cite
- Vietnam-Philippines trade friction has stranded some Indian ships mid-sea, traders said.
- Paharia Jain estimated rice output could fall at least 10 percent from last year's 124.5 million tonne kharif record.
- External Affairs Minister S Jaishankar has warned of wider food-supply strain from regional conflicts.
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