India needs to diversify markets for rice exports
A market update by Cogoport, an online logistics marketplace states that India should explore Egypt, China, Mexico & Malaysia for its rice exports. The firm notes that China is emerging as an export giant and countries like Pakistan, Thailand and Vietnam are hampering the market for Indian rice exporters. The estimate also states that it is plausible for global rice production to dip as smaller crops are expected in the United States, North Korea and Thailand. India, it has been forecast, will see a drop in non-basmati rice exports in 2019, while its basmati exports will grow at a slower rate in 2019.
Nikhil Singh, CEO of Rajputana Rice, stated, “Rice exports can be challenging. Exporters face liquidity issues as payment can take months to come and competition from high quality and cheaper Pakistani and Thai rice is increasing”. Rakesh Kumar Singh, vice president of the Rice Exporters Association opined “We remain a strong player in rice exports to west Africa. We should now be targeting new markets like China, Malaysia and the Philippines. To avoid payment challenges, exporters should take an advance of 10-20% and the balance on fax or through the bank. If you have some money upfront, the buyer will not default.”