China begins import of Indian rice; orders 5,000 tonnes after a gap of many years

Amid border tensions, China has started importing Indian rice after a gap of two years and placed orders for shipment of about 5,000 tonnes of non-basmati rice due to competitive prices offered by India compared to other nations. India is the world's biggest 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 2017-18 fiscal.

"Although market access was given in 2006, China imported about 974 tonnes of non-basmati rice in 2017-18 fiscal. Now after a gap of two years, we have started receiving enquiries...," All India Rice Exporters Association (AIREA) Executive Director Vinod Kaul told news agency PTI.

'China has started showing interest'

Less than 150 tonnes of basmati rice has been exported till October of 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 has started showing interest in buying rice from India," Kaul said it is because the neighbouring nation is "facing tight supply situation amid likely fall in output and trade curbs in the wake of COVID-19 from its other importing destinations like Thailand and Vietnam." "That apart, India is offering competitive prices when compared to other nations in the world at present," he added.

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Countries supplying rice to China like Pakistan, Myanmar have limited surplus supplies for export and were quoting at least $30 per tonne more compared with Indian prices, other media reports stated quoting 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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