India's ban on non-basmati rice exports boon to competitors

India's ban on non-basmati rice exports 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) 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 in a latest report.

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 knocked off to fourth position, while Pakistan has moved up by one place to third rank in the list of top rice exporters in 2008-09, it added.

India had slapped a ban on non-basmati rice exports in April 2008 to contain rising inflation. It, however, allowed to ship abroad about two million tonnes via diplomatic channels.

Pointing 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 the Indian government with respect to non-basmati rice had resulted in a rise in global prices last year. However, the panic has largely abated, prices have fallen, and both stocks and consumption in the rest of the world are rising, it added. link....