Factors affecting rice exporters of India this week

Currency, break bulk shipments, government procurement and MEIS are the key factors affecting rice exporters of India this week.

1. Currency:
The Indian currency appreciated against the U.S. Dollar from 22 – 27 March by around 0.56%. This increased the costs for the rice exporters of India earlier during the week.

2. Break bulk shipments:
Four vessels were being loaded with a total of 136,250 MTS by rice exporters of India from Kakinada Port during this time, which is significantly less than the earlier month.

3. Crop Outlook: Rabi crop (new crop in summer) is excellent this year. In southern states it will start arriving by the 3rd week of April and in Central and Western India by the 1st week of May. This could push prices further down, possibly presenting a favourable situation for the rice exporters of India.

4. Market outlook: Paddy tender by the Chhattisgarh state government has been cancelled. Without the 5% MEIS benefit, rice exports from India have practically come to a standstill. Millers and exporters of India are watching how much lower prices can go before demand matches the supply. The rice exporters of India are hoping that the government will resume the MEIS benefit, but it may not be implemented before the general election results are announced in the end of May.

Overall: Indian rice market sentiment was bearish as demand remained slow. The rice exporters of India expect demand to pick up once domestic prices fall down further when the new crop arrives next month.

More information: For more information on the markets or any other information, please email us at marketing@shahnn.com.

Disclaimer: This information is gathered from various sources, including some unverified sources. While we try to make it as correct as possible, we are unable to guarantee it’s authenticity.