MUMBAI: The slump in rice exports over the last few months is part of a regular annual cycle, and shipment volume is expected to grow in 2019, following pick up in demand from Middle East as well as other new markets, according to a report.
"As per our data, India has exported shipments worth over USD 183 million so far in this quarter, as of November 2018. As the annual seasonal demand from the Middle East picks up, and more non-basmati rice gets shipped to China, Indian rice exporters can expect business to pick up in the coming months," US-based trade finance company Drip Capital's co-founder and co-CEO Pushkar Mukewar said.
However, he said, exporters are unlikely to see the due benefits from this increased opportunity if they are unable to access required credit.
Overall rice export volumes have improved and by September-end shipments were valued at USD 6.87 billion compared to USD 5.8 billion in the same period of 2017.
Thus, the report said, there is little need for panic, as demand and export volumes is expected to continue rising into 2019.
New markets are also opening for Indian rice, with China being touted as a major opportunity.
However, exporters will begin to benefit from Chinese trade only in the long-term, it added.
Further, it said, exports to Bangladesh have seen stellar growth, despite a slump in April-September this year as overall shipments to Bangladesh in the first three quarters have grown USD 91.7 million year-on-year.
Based on heavy increase in demand there are six other potential market opportunities for Indian exporters, including Qatar, Yemen, Israel, the Philippines, Kenya and Ukraine, it added.