China placed orders for shipment of about 5,000 tonnes of non-basmati rice due to competitive prices offered by India compared to other nations.
Even as neighbouring countries China and India face border issues, trade between the two world's most populated countries have taken a positive turn. In a new twist of events China has decided to import Indian rice after a gap of two years.
China placed orders for shipment of about 5,000 tonnes of non-basmati rice due to competitive prices offered by India compared to other nations, according to the All India Rice Exporters Association (AIREA).
India is the world's major exporter of rice, while China is the biggest importer. In 2006, China was given market access for Indian rice but shipments took place only during the 2017-18 fiscal. China buying rice from India comes at a time of heightened border tensions between the two nations.
'For the first time, China has made rice purchases. They may increase buying next year after seeing the quality of Indian crop,' said BV Krishna Rao, president of the Rice Exporters Association, as quoted by Reuters.
According to AIREA Executive Director Vinod Kaul less than 150 tonnes of basmati rice has been exported till October of the 2020-21 fiscal. In last two months, China has placed orders for shipment of about 5,000 tonnes of non-basmati rice called broken rice from south India, he said. Broken rice is used for making noodles as well as in the wine industry.
China’s traditional suppliers - Thailand, Vietnam, Myanmar and Pakistan raised their prices owing to limited surplus supplies for export during the Covid-19 pandemic times. This has led to China's allegiance towards Indian market.
That apart, India is offering competitive prices when compared to other nations in the world. The above mentioned countries were quoting at least 30 dollars per tonne more than the Indian prices, according to rice trade officials.
As per the AIREA, India has exported 2.8 million tonnes of basmati rice and 6.1 million tonnes of non-basmati rice during the April-October period of the current fiscal. In 2019-20 fiscal, total basmati rice exports were at a record 4 million tonnes and non-basmati rice at 5 million tonnes.
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