India benefits from the Chinese increase in demand for broken rice

Published 2022년 4월 10일

Tridge summary

The USDA has increased its forecast for China's rice imports for the 2021/22 marketing year to 5.2 million tons, the highest since 2018/19, due to a 36% rise in imports from July 2021 to February 2022. India has been the largest contributor to these imports, exporting 870,000 tons in the first 8 months of the 2021/22 marketing year, up from 60,000 tons in the same period of the previous marketing year. The majority of the imports are broken rice, which is more affordable and can be imported outside of the tariff-rate quota, attracting a 10% tariff only. The increase in imports is due to competitive prices and the replacement of corn in feed rations, as well as its use in processed foods and liquor manufacturing.

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Original content

The forecast for China rice imports for 2021/22 (July/June) marketing year has been raised by 500,000 tons to 5.2 million tons, the highest since 2018/19, mostly on higher demand for broken rice from India, the USDA said. So far, imports from July 2021 through February 2022 have totaled 3.5 million tons, up 36 percent compared to the same period in 2020/21, inciting the increase for the forecast, it said in its latest monthly report. Traditionally, China imports rice from Vietnam, Myanmar, Pakistan, and Thailand. The largest contributor to import growth this marketing year is India, which prior to 2020/21 only supplied around 50,000 tons per year, as market access was restricted to basmati rice. Since obtaining access for non-basmati, India has been exporting in larger quantities. During the first 8 months of 2020/21, China imported about 60,000 tons from India, the USDA said, adding that during the same timeframe in 2021/22, China’s imports from India surged to 870,000 tons. ...

Source: Indoasiancommodities