India is likely to export 10 lakh tonnes of rice to Indonesia which is valued at Rs 3300 crore, this year.
The Dollar Business Bureau
India is likely to export 10 lakh tonnes of rice to Indonesia which is valued at Rs 3300 crore, this year. Though this may come as a surprise to many, the Indian government has clarified that it is in a comfortable position to extend the rice deal to Indonesia. The country has a surplus of 160 lakh tonnes of rice stocks against the required 76 lakh tonnes as figures show on January 1. Added to this The Food Corporation of India has another 127 lakh tonnes of paddy stocks.
The details of price and quantity are yet to be worked out. These are currently under negotiation, a source in the Commerce Ministry revealed. “Although the MoU will be a non-binding one, it would at least give us an indication of the business that we might do with Indonesia,” the official said. India is hopeful that the MoU would be inked for an extended period similar to the one it signed with Pakistan.
Indonesia is struggling with a temporary shortage of rice as a result of last year’s prolonged El Nino effects, which resulted in the postponement of rice being planted in the country. Though Jakarta is optimistic that its domestic production shall increase again by April, it has been looking for new import sources to bridge the current shortfall and to stall price hikes.
This deal is special for India as it vies for the title of world’s top rice exporter with Thailand. India exports around 10 million tonnes of rice a year and this deal comes at a moment when the export of cereals has been declining compared to last year. This has been attributed to a fall in imports by major rice importing countries, Iran and Nigeria. India had exported a total of 11.92 MT of rice in 2014-15.
The country has a surplus of 160 lakh tonnes of rice stocks against the required 76 lakh tonnes as figures show on January 1
February 16, 2016 | 05:40pm IST