Indian rice exporters receiving requests for early shipments of basmati rice: Report

Following India's ban on the exportof non-basmati white rice, the country's rice exporters have been receiving requests from buyers to advance shipments of basmati rice, news agency Reuters reported citing industry officials.

Earlier this month, India, which is the world's biggest exporter of rice, imposed a ban on the exportof non-basmati white rice after retail rice prices escalated by 3% in a month after late but heavy monsoon rains caused consequential damage to crops.

"Buyers are requesting early shipments because they fear that the government might put restrictions on exports of basmati rice as well," said Atul Garg, managing director at GRM Overseas, a leading exporter of basmati rice.

He said that the buyers sign long-term contracts with the certainty of delivering a specific quantity every month. Regardless, some of the buyers are now requesting to dispatch in the month of August what was supposed to be sent in the month of September and October.

In 2022/23, India exported around 4.5 million metric tons of basmati rice,with Saudi Arabia, Iran, Iraq, United Arab Emirates, Yemen and the United States among the top buyers.

India has banned non-basmati white rice for export, which is mainly purchased by Senegal, Benin, Togo, Bangladesh, and Cote d'Ivoire.

India, previously, has never banned the exportof basmati rice but did impose export taxes in the year 2008.

"We are assuring buyers that there is no possibility of a ban on basmati rice exports but some buyers are afraid due to the government's recent decisions," said another exporter based in New Delhi.

US stores limit rice purchases as export ban triggers panic buying

Earlier this week, in response to India's announcement of a ban on the export of non-basmati rice, a surge in panic buying of rice was witnessed in departmental stores across the United States.

The escalating demand has led to many stores imposing restrictions on the number of rice bags customers can purchase, resulting in reports of empty shelves.

To manage the situation and ensure fair distribution, numerous stores have put up notices limiting customers to purchasing only one rice bag per family.

However, concerns have arisen regarding hoarding, with fears that some individuals may stockpile rice and attempt to sell it at significantly higher prices through online forums.

(With inputs from agencies)

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