Last Updated : 06 March 2012 at 13:05 IST
India to allow more rice, wheat exports on surplus production
India may allow additional exports of rice, wheat and sugar on the back of surplus production for 2011-12, according to Sharad Pawar, Agricultural minister of India.
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NEW DELHI (Commodity Online): India may allow additional exports of rice, wheat and sugar on the back of surplus production for 2011-12, according to Sharad Pawar, Agricultural minister of India.
Demand for India's rice varieties (non-basmati rice and basmati rice) is high in the global market on competitive prices and good quality compared to others.
India's rice is prices in the range $350 and $1000 per ton in the global market. And India is expected to export around 4 million tons of rice this year.
India had lifted the ban over rice was removed just five months back. With in this period, the country gained the status of being the top exporter over coming Thailand.
The hike in Thai rice Minimum Export Price (MEP) has been the reason for buyers to turn to India.
While, India is expected to produce 87.5 million tons of wheat for 2011-12.and consumption is expected to be around 85 million tons.
India is likely to allow more exports of the commodity to reduce the stress over the ware houses. Meanwhile, the traders are facing problems over the bumper global crop harvest, which has dampen the export demand for the commodity in the global market.
But with western sanctions hitting supply of wheat to Iran from the U.S and Europe, the country is likely to seeks exports from India.
According to USDA reports, India's wheat exports is expected to more than double to 1.5 million tonnes in the 2012-13 marketing year.
Meanwhile, sugar exports of India is presently down as Indian sugar price is higher compared to global prices and surplus production across the globe is expected to weaken the export prospects of the country.
Bad weather in Brazil and increased use of cars which uses up to 100% ethanol as fuel in the country, The global supplies may dip which may prompt the major buyers like China to look for alternative sources of supplies.
India government has allowed 2 million tons of sugar for exports for 2011-12.
With the rise in export quantity of rice, wheat and sugar, India's exports prospects looks brighter.
For March delivery, in Inter-Continental Exchange (ICE), sugar traded at 24.68 cents per lb and wheat traded at 666 2/8 cents per lb on Monday.
While in National Commodity and Derivative Exchange (NCDEX) for March delivery, sugar traded down 0.25% to Rs 2832 per qtl and wheat trade down 0.41% to Rs 1211 per qtl on 6th March at 11:20 IST.
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