The Hindu : Andhra Pradesh News : Dwindling rice stocks worry exporters

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Saturday, Aug 18, 2007
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Andhra Pradesh

Andhra Pradesh

Dwindling rice stocks worry exporters

Correspondent

Big gap between supply and demand due to various reasons

Steady rise in rice price a cause for concern
Foreign buyers now look towards Thailand

Kakinada: Of late, rice exporters are getting worried about the dwindling rice stocks on one side and the steady increase in price in domestic market on the other. Though there was some respite from the losses faced consequent on dollar crash against rupee in recent weeks with the DEPB percentage getting increased by the government and the marginal increase in price of rice in international market, it proved to be short-lived.

“The Rabi crop rice is getting depleted and unless supplemented by the crop of other states, it will be difficult to cope up with the demand and fulfil the contractual obligations for the next couple of months,” says an exporter. The availability of rice at present is about two lakh tonnes as against the contracted demand of over seven lakh tonnes. The plugging of public distribution system rice, due to intensive raids conducted by the civil supplies authorities, has its affect on the availability of rice for exports. It is an open fact that buyers, all these years, used to secure the PDS rice clandestinely in view of the huge profit margin involved and route it to exports.

Dependence

“Until the Kharif rice comes to market, buyers have to depend upon other states, especially the Punjab where the ‘Sathi’ (sixty days) crop rice is readily available. But it has its own disadvantage in view of the high percentage of moisture content. It will not be received well with foreign buyers. The steady rise in price of rice in the market by about Rs. 1200 per tonne within a span of one month is also equally worrying us,” says another exporter.

Another disturbing aspect, he says, is foreign buyers are now looking towards Thailand, the leading rice exporter for rice supply as the Thai rice is of superior quality than ours. The anchorage port here is considered to be ideal for export of rice and other agri-products. Despite the drawbacks such as shortage of steel barges, warehouses and jetties, the port continues to be the hub for rice exports. Till July-end, 10.5 million tonnes of rice was exported.

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