China buys Indian rice for first time in decades as supplies tighten
Women plant rice saplings at a paddy field in a village in Nagaon district, in the northeastern state of Assam, India
China has started importing Indianricefor the first time in at least three decades due to tightening supplies and an offer from India of sharply discounted prices, Indian industry officials told Reuters.
India is the world's biggest exporter ofriceand China is the biggest importer. Beijing imports around 4 million tonnes ofriceannually but has avoided purchases from India, citing quality issues.
The breakthrough comes at a time when political tensions between the two countries are high because of a border dispute in the Himalayas.
"For the first time China has madericepurchases. They may increase buying next year after seeing the quality of Indian crop," said B.V. Krishna Rao, president of theRiceExporters Association.
Indian traders have contracted to export 100,000 tonnes of brokenricefor Dec-February shipments at around $300 per tonne, industry officials said.
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China's traditional suppliers, such as Thailand, Vietnam, Myanmar and Pakistan, have limited surplus supplies for export and were quoting at least $30 per tonne more compared with Indian prices, according to Indianricetrade officials.