India's rice exports may decline by 20% in 2016 due to tight supplies and growing domestic demand, according to the UN body FAO. India, the world's biggest rice producer after China, is estimated to export about 10 million tones(mt) of rice this year, same at last year's level, as per the industry data.
Food and Agriculture Organisation (FAO) said all exporters are expected to step up their rice deliveries in 2016, except India, where a tightening of supplies and growing domestic requirements are foreseen to result in a 20% contraction in rice shipment.
Lower exports in India are expected to be offset by increased exports from Thailand and Vietnam. India is expected to harvest 103.5 mt of rice in 2015, it said. Global rice output is estimated to be lower at 499.3mt this year, while world trade in rice in 2016 is pegged at 42.1mt, it added. FAO also said that global rice prices have been on decline for last ten months and much of the fall has been witnessed in aromatic rice.