China
Resumes Imports of Broken Rice from India Despite GMO Concerns
- ¨ China has resumed imports of broken rice from India despite recently rejecting several consignments over alleged traces of genetically modified organisms (GMOs).
- The renewed trade activity comes at a time when Indian rice remains competitively priced in the global market, even as logistical costs rise due to geopolitical tensions.
Competitive Pricing Drives Chinese Demand
- ¨ India’s broken rice is currently being offered at around $300–310 per tonne (free on board), making it attractive to global buyers, including China.
- Indian 5 per cent broken white rice is priced at $335–339 per tonne, significantly lower than competitors such as Thailand, Vietnam and Pakistan. Supply shortages in these countries have further strengthened India’s position as a preferred exporter.
Freight Costs Surge Amid Iran Conflict
- ¨ Exporters have flagged a sharp increase in shipping costs due to a 50 per cent rise in bunker fuel prices, driven by the ongoing Iran conflict.
- Freight charges for a 20-foot container have risen to $75–80 per tonne, adding pressure on overall export margins. Despite this, demand remains stable, particularly from West Africa and China.
