On Thursday, government sources said India would not lift the rice export bans as they try to keep a lid on domestic prices.
Rough rice contracts for March delivery increased by 0.24% to $16.83 per hundredweight on February 23’s closing session.
In New Delhi, officials said rice export restraints will push buyers in Asia and Africa to pay more for the output. The prices became more expensive during the last few weeks.
Moreover, India banned overseas rice shipments and pressed a 20.00% duty on exports of other grades in September 2022. They have over-production issues due to below-average monsoon rainfall in significant growth areas.
According to analysts, deliveries did not slow down despite the export duty. As a result, they refused to reduce or scrap the government tax paid on goods.
Also, they added that the government would not resume rice exports just because other countries want it as raw materials. Instead, officials prefer their local industry to consume the product.
Besides, the nation will extend its shipment repressions amid alarms that the El Nino weather phenomenon might hit monsoon rains.
In addition, experts said New Delhi did not deprive other countries of rice. Meanwhile, they have maintained enough stocks and would like to continue with that arrangement.
Indian Rice Exporters Witness Strong Demand
This week, rice prices from India and Vietnam climbed on robust demand despite existing global supply risks.
Even with the increase, Indian prices are lower than its competitors, causing more vital requests for the commodity, experts said.
Furthermore, the country’s rice costs hit $397.00 to $404.00 per ton, higher than last week’s $395.00 to $402.00 a ton.
Government officials say its exports jumped to a high record despite their curbs. Consumers continue to grab offers from the world’s top suppliers.
Also, traders mentioned that the demand is still surging since many are still buying amid the global situation’s uncertainty. From the beginning of March to April, fresh supply is expected to further decline.