India 'Price band of $375-450 /t to fetch cheaper rice'

THE Indian government should specify a price band of $375-450 /tonne for the 3,00,000 tonnes rice that it wants to import through STC,
MMTC and PEC in order to facilitate cheaper imports from Pakistan and Myanmar, grain traders maintain.

The tenders opened from the three parastatals, for 100,000 tonnes each, were floated on Monday but are open ended. Trade monitors contend that if the Indian government wants to ensure that the cheapest and most commercially viable rice exporters—Pakistan and Myanmarmake the grade in the tenders, India should specify a price band of $375-450

"Not only are imports from these two countries cheaper, but it is only imports within this price range that will ensure that the government neither pushes down domestic price for varieties such as Sona Masoori (Myanmar rice is similar to this quality) even while making certain that Indian imports at this juncture will not impact significantly on world rice prices. The imports should be in trenches and in small quantities," former head of the All India Rice Exporters' Association (AIREA) Vijay Sethia told ET.

Pakistan is reportedly interested in bidding for the tenders, on the strength of a one million tonne surplus this season. It is quoting rice at $450, while Thai and Viet Nam rice are quoting at $470 and $540/tonne respectively.

"Imports are mostly viable from these two countries," a Delhi-based rice trader said. However, there are apprehensions that rice trade with Pakistan may not be that easy in view of the political equations between the two countries.

Myanmar has lesser surplus and some problems are expected in the quality standards. However, Mr Sethia pointed out that even transport charges between Karachi and Mumbai would be lower than if rice were imported by India from Vietnam and Thailand.

The Centre, which has put up a proposal of two million tonne imports to the EGoM to be held this week, is understood to be looking at positive responses from Vietnam on 25% brokens, which has five million tonnes in surplus rice and is cheaper than Thai rice.