Insightful in China Buys Indian Rice for first time in Decades

                     China's Next Big Move?

Hey All, Welcome back to another blog article where we are going to discuss that what actually has happened that China has started importing Indian rice after a gap of two years? 

They Suddenly placed an order for shipment of about 5,000 tonnes of non-basmati rice, Expert says that it is due to competitive prices offered by India compared to other nations.

All these details that I would mention is not mine through any means, It is totally given by All India Rice Exporters Association(AIREA).

After 30 Years Scene?

This Deals somehow feels awkward because China buying rice from India comes at a time heightened border tensions between the two nations.

Actually, Before 1980s India exported rice and China imported without any flaws, this process was carried out for a long time, but then due to we can say, some political reasons, this deal didn't happened for several of years. 

But, In 2006, India allowed or we can say given permission to China to access Indian market for rice but the strange thing is shipments only took place during 2017-18 fiscal, China imported about 974 tonnes of non-basmati rice that year.

Now, Again after a gap of two years, India have started receiving enquiries,

Pic Credit: AIREA

For Fact: India is the world's biggest exporter of rice and China is the biggest importer.

Have a look at this World's Map of production:

Pic Credit: Maps of World 

Although, China is the country with highest number of Rice Production, Still, China is the largest importer of rice, The main reason for this could be their consumption of rice on a daily amount, this country has a large amount of consumption of rice per day through various ways.

Now, Understand that Beijing imports around 4 million tonnes of rice annually, But, has avoided purchases from India, citing quality issues. 

Then, What could be the reason for that sudden deal?

Reason:-

The reason for this is China's rice importing countries Thailand and Vietnam is now facing problems and falling shortage of rice, and this is due to less production of rice during COVID-19 throughout the country.

Whereas in India, Agriculture department is still on Cloud nine, China's traditional suppliers, such as Thailand, Vietnam, Myanmar and Pakistan, have limited surplus supplies for export.

Secondly, India is offering competitive prices compared to other nation like other nation are quoting at least $30 per tonne more.

India's Total Export Of Rice:-

According to All India Rice Exporting Association, During past 6-8 months, India has exported 2.8 million tonnes of basmati rice and 6.1 million tonnes of non-basmati rice during the April-October period of the current fiscal.

Pic credit: World-grain

Just for fact, We export Non-Basmati Rice more than Basmati Rice.

Now, China ordered Non-Basmati rice, they usually call it Broken rice which is used for making noodles as well as in the wine industry.

And, Indian traders have contracted to export 1 Lakh tonnes of broken rice for Dec-February shipments at around $300 per tonne. 

Grown in Export:-

Pic credit: TOI

India's agricultural exports are up 4.6% year-on-year in dollar terms during April-September.

And, That too Rice is on top of that agricultural exports, Have a complete look:

Pic credit: IASBhai

Broken Rice is export is increased by 91% in comparison with last year, India exports Basmati rice mostly to the West Asian countries such as (Iran, Saudi Arabia, Iraq, United Arab Emirates, Kuwait, and Yemen), besides the US and UK. 

And Lastly, The location for non-basmati rice exports from India are mainly West Africa such as (Benin, Nigeria, Togo, Ivory Coast, Liberia, Guinea and Senegal), East Africa (Somalia and Djibouti), UAE and Nepal.

Ending

Those who were unable to relate this with what will happen to tech and what is the relation of this topic with tech, then I would like to say that, More production, High Demand and Hi-Tech Technology so, Exporters can get rice as soon as possible and more processed rice will be then available.

And guess, what more? I want to deliberately cover this topic.

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We'll meet in next blog with a very fantastic science topic that would be useful to know, and maybe following sequel of scientific blog ep: will be coming, Stay safe and sound, We'll meet in next blog, BBye.

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