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Rice exports likely to drop 30% as harvests set to fall

29 Oct 2014 Evaluate

India's rice shipments will probably drop as much as 30 per cent as drought and a cyclone this month curbed output. Exports will decline to about seven million tonnes (mt) to eight mt from 10 mt this year. Production will drop to a range of 95 mt to 100 mt in 2014-2015 from 106 mt a year earlier.

India will admit its position as the largest supplier to Thailand in 2015 after weak rains during the first half of the monsoon reduced output. Production of food grain sown in the rainy season may drop to the lowest in five years. Half a million hectares were affected by Cyclone Hudhud, which hit the east coast this month.

Weak rains in the first part of the monsoon will cut milled output to 104 mt from 106.5 mt. Exports from the South Asian nation will drop 20 per cent to 8 mt, while Thailand will ship 10.6 mt. The spread of Ebola may disrupt Indian shipments to Africa. India is the top supplier to some countries such as Liberia, Guinea and Sierra Leone.

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