According to local sources Indian rupee, which stroke 13 month squat to around Rs.63.53 against the U.S. dollar, due to decreasing crude oil prices, has begun to put downward pressure on Indian rice export prices. Crude oil prices have dropped to around $55 per barrel.
Experts are assuming Indian rupee to cross Rs.64 in the approaching weeks owing to global factors and year end profit reservations.
Paddy rice prices in India have been dipping for the last few months due to boosted supplies from the continuing kharif rice crop yield. On the other hand, firm competition between rice exporting nations such as Vietnam, Thailand and Pakistan joined with improved exportable excesses in these countries have led to weakening in export rice prices in the last couple of months.
According to the UN’s Food and Agriculture Organization, average export prices of India 25% broken rice declined about 2.4% in November 2014 to around $362 per ton from around $379 per ton in October 2014.
Fading rupee is enhancing to the already declining export rice prices. Standard prices of India 5% broken rice fell to around $385$395 per ton today, low about 2.5% from around $400 per ton last week. Local sources say Indian exporters are strained to decrease prices in harmony with Thailand and Vietnam sellers.
Whereas Thailand is profound on peddling its almost 17 million tons of rice stocks gathered from the rice pledging scheme announced by the previous government, Vietnam is profound on exporting as much rice as possible from the fresh harvest.
Though, India’s exports have been restrained for the past few months due to Iran’s provisional ban on rice imports. Iran is an chief export market for India’s basmati rice and books for about 30% of India’s total basmati rice exports.
According to data from the Agricultural & ProcessedFood Products Export Development Authority,India exported across 5.926 million tons of rice in the six months (April September 2014) of FY 201415, low about 4% from around 5.51 million tons exported throughout the same period last year.