Cheaper rice from China and Thailand is eating into India’s traditional African markets, reducing India’s ability to export rice to Africa. Rice Exporter from India is now looked in by the government for help in the shape of incentives to save the situation.
During April-May of this year, non-basmati rice exports plummeted to $294 million from $652 million in the same time last year.
The African Rice Exporter market is projected to be over 15 million tonnes a year, and India has a roughly 50 percent share of that market.
The increasing rupee against the dollar has made Indian rice export more expensive on the global market for African rice importers. Indian rice exporters have been dealt a further blow by increasing paddy’s minimum support price (MSP).
Non-basmati rice exports from India to Africa have dropped by more than half in the last year, according to preliminary data.
Non-basmati rice exporters have been urged by the Rice Exporters Association of India to “consider” an extension of the MEIS incentive of 5 percent and an interest subsidy of 5 percent.
Rice Exporter From China to Africa
Compared to rice imported from Thailand, Vietnam, Pakistan, and Myanmar, Indian non-basmati rice is 5-10% more expensive for African importers. The Chinese state agency COFCO is aggressively exploring new markets in Africa to dispose of old stocks of 3-4 million tonnes of Indian rice, further offsetting the situation. Africa is a focus for COFCO, with countries including Egypt, Senegal, Cote d’Ivoire, Somalia, and Liberia all on the list. The case for Indian rice exporters has been made worse by the arrival of lower-cost Chinese rice into African markets.
Rice Exporter from India to Africa
One-fourth of the world’s rice export come from India, the grain’s top producer, and exporter. Exports of non-basmati rice declined to 7.5 million metric tonnes in 2018-19 from 8.8 million metric tonnes. Shipments decreased from $3.63 billion in 2017-18 to $3 billion in 2018-19.
Africa now accounts for 20-30% of worldwide rice imports, making it a significant player in the industry. Sub-Saharan Africa’s high rice consumption is an essential factor in Africa’s quick rise in the international rice trade market.
Rice Importers in Africa
Rice is grown on 7.3 million hectares in Africa, accounting for 2.6% and 4.6% of the world’s total rice production and area under cultivation. Seventy-eight percent of the rice field is irrigated by rain in West and Central Africa. 3.7 million hectares (5.7 percent) of the region’s rice planting area is West Africa. Of the overall production, 42% comes from the West African region, 32% from North Africa, 23.8% from East Africa, 1.2% from Central Africa, and 12% from Southern Africa (1 percent ).
Africa’s Rice Importing Companies
In Africa, rice demand is growing faster than anywhere else globally. Land expansion of 70% and productivity growth of 30% are credited with the region’s increasing rice production. The area goes through about 11.5 million tonnes of rice annually.
Nearly half of the world’s rice is traded in the Middle East and Africa.
As a commercial crop in Eastern and Southern Africa, rice is more of a subsistence crop in West Africa, where it is grown by the majority of the continent’s farmers. As a result of rising demand, the region’s rice production increases at a 5-6% annual rate.
Import Rice from Africa
To supply the increased demand for rice in Africa, African importers have been purchasing ever more significant quantities of rice from worldwide. According to industry reports, Africa has imported 17 million tonnes in the last five years. Moreover, three-quarters of the world’s population, or 3.5 billion people, depends on rice for food and income.
Due to a lack of supply from African rice producers, rice importers have had to turn to suppliers in other countries to help meet the expanding demand for the grain in Africa.
List Of African Companies Who Import Rice
Direct B2B relationships between African rice importers and global rice suppliers are the goal of the Africa Rice Importers Directory. The Africa Rice Importers Directory provides rice exporters with a complete directory of African rice importers and assists them in making direct contact with them.
Especially in Africa, where other media and promotional tools are less efficient, online sales and email marketing have become increasingly crucial in promoting B2B interactions and creating sales leads. The Africa Business Pages have again shown that they are at the top of their game regarding African direct B2B marketing by developing a comprehensive list of rice importers.