A memorandum of understanding was signed between Balaji Agro Oils Limited, represented by Vallabhaneni Suraj Kumar, and the Latin American Caribbean Trade Council, represented by Dr Asif Iqbal, for the supply of 3 lakh metric tonnes of rice and other commodities to Cuba and neighbouring LAC countries.
The Memorandum of Understanding was signed in the presence of Minister of Foreign Trade and Economy, Deputy Minister of Foreign Trade Deborah Rivas Saavedra, Cuban Ambassador to India Alejandro Simancas Marin, and other Cuban delegation members.
India, the world's largest rice exporter, primarily exports top-quality basmati rice to the Middle East, as well as non-basmati rice to African and Asian countries. To keep domestic prices stable, the country has restricted non-basmati rice exports. However, overall rice exports have increased significantly. India is the world's largest exporter of rice. Non-Basmati rice is exported to African countries, while Basmati rice is exported to the Middle East.
According to a report, India's total rice exports increased by nearly 46% year on year in 2021 to a record 21.42 million tonnes. The increase was due to increased purchases by Bangladesh, China, and Vietnam.
According to government and industry officials, India's rice exports will reach a record high by the end of 2022, despite the government's restrictions on overseas sales, as buyers continue to purchase from the South Asian country due to competitive prices. Because Indian rice is the cheapest, exports are expected to remain strong in 2023.
The record exports enabled Asian and African countries to import the staple at a time when wheat and other grain supplies were being depleted due to drought and Russia's invasion of Ukraine. According to Ramakrishna Reddy, Chairman of the India African Union Trade Council, India's rice exports in 2022 will increase by 3.5% over the previous year to 22.26 million tonnes, or more than the combined exports of the next four largest exporters Thailand, Vietnam, Pakistan, and the United States.
The Export-Import Bank of India (Exim Bank) has entered into an agreement with the Banco Exterior de Cuba, an agency nominated by the Government of the Republic of Cuba, dated June 23, 2022, to make available to the latter a Short-Term Line of Credit (STLoC) of EUR 100 million (Euro One Hundred Million Only) for the purpose of financing the procurement of rice from India to the Republic of Cuba.
The Latin American Caribbean Trade Council is the main body that sets benchmarks for rice exports from India and collaborates with various trade ministries and buying agencies in Latin America, as well as local India state governments and concerned stakeholders, to promote and boost rice exports. As part of the initiatives, LACTC, in collaboration with the rice exporters associations of Punjab, Haryana, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Jammu and Kashmir, and Delhi, state agriculture universities, and state agriculture departments, plans to raise awareness of the opportunities for supply of rice and other commodities to encourage farmers in the seven states to grow high-quality rice and millets.
Farmers will be informed through the awareness creation programme that millets and rice cultivation is an Indian tradition and that it is a collective responsibility to maintain this tradition because there is a high demand for Indian rice in the global market. India accounts for roughly 40% of global rice shipments, exporting to over 150 countries. Despite price increases of nearly a quarter, India's exports of premium basmati rice are expected to increase by 15% over last year as key buyers in the Middle East build their inventories. Higher basmati exports would keep local prices stable, allowing Indian farmers to earn more by driving paddy prices to an all-time high.
According to government and industry officials, India's rice exports will reach a record high by the end of 2022, despite the government's restrictions on overseas sales, as buyers continue to purchase from the South Asian country due to competitive prices. Because Indian rice is the cheapest, exports are expected to remain strong in 2023.
