Global rice prices are trading at two-year highs on the back of strong demand from Asian exporters. Rice prices have risen by 29 percent on a year-on-year basis. They are up 6 percent monthly and 3 percent weekly.
The expectation of record production and higher consumption in 2022-2023 is also supporting the prices apart from the shift in focus to rice amid a shortage in wheat.
Vijay Setia, former president of All India Rice Exporters Association, believes India is in a position to cater to the world rice market. India already has a 40 percent share in global exports.
“India is in a position to cater to the world market in a big way. Last year we had almost exported 20 million tonnes of rice, which is an all-time high,” Setia said.
He said India could raise the price of its rice, but Indians seem happy to sell their produce at lower margins and profits compared to the developed countries.
“If India wants to raise the price of its rice, it can raise it, but the problem is Indians are happy selling at a lower margin and lower profits whereas same product if it is in any developed country, they will extract the right price for their inputs. We are putting so much water, so much effort, and we are still offering the rice at a very low price to the whole world, which is a matter of concern.”
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