Indian Rice May Need More Export Subsidies To Stay On The Boil

Ags - Grains/Beans 282 Consumer Staples 735 India 466 Tariffs 1768 Thailand 123 U.S. 5203 Vietnam 343

Competition between Asian rice exporters is growing after the Indian government applied a 5% export subsidy in late 2018. While the subsidy is due to expire in March it will likely be continued ahead of elections scheduled to begin in April. While Indian rice exports have expanded – U.S. seaborne imports grew 16.2% in the fourth quarter of 2018 vs. a year earlier – they have only kept pace with shipments from Thailand. Additionally rough rice prices fell 13.9% in December from May’s peak, indicating competition has already become more aggressive. The most important markets for Indian ric...

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