Rice Diplomacy Gaining Traction Between India & Cuba

An MoU was signed between Balaji Agro Oils Limited, represented by Vallabhaneni Suraj Kumar, and the Latin American Caribbean Business Council, represented by Dr. Asif Iqbal, for the supply of 3 lakh metric tonnes of rice and other commodities to Cuba and the neighboring LAC. countries.

The MoU was signed in the presence of Foreign Trade and Economy Deputy Minister Deborah Rivas Saavedra, Cuban Ambassador to India Alejandro Cimancas Marin and other Cuban delegation members.

India, the world’s largest rice exporter, exports high-quality basmati rice primarily to the Middle East, as well as non-basmati rice to African and Asian countries. The country has restricted the export of non-basmati rice to stabilize domestic prices. However, there has been a significant increase in rice exports overall. India is the world’s largest exporter of rice. While non-basmati rice is exported to African countries basmati rice Exported to the Middle East.

According to a report, India’s total rice exports are set to grow by nearly 46% year-on-year to a record 21.42 million tonnes in 2021. This increase was due to increased purchases by Bangladesh, China and Vietnam.

India’s rice exports will reach a record high by the end of 2022, as buyers continue to source from the South Asian country due to competitive prices, despite government restrictions on overseas sales, according to government and industry officials. Because Indian rice is the cheapest, exports are expected to remain strong in 2023.

The record exports enabled Asian and African countries to become key imports at a time when drought and Russia’s invasion of Ukraine were reducing supplies of wheat and other grains. According to Ramakrishna Reddy, President of the India-African Union Business Council, India’s rice export In 2022 it will grow 3.5% from last year to 22.26 million tonnes, or more than the combined exports of the next four biggest exporters Thailand, Vietnam, Pakistan and the United States.

The Export-Import Bank of India (Exim Bank) has entered into an agreement with Banco Exterior de Cuba, an agency designated by the Government of the Republic of Cuba, on June 23, 2022, to provide short-term lending to the latter. Term Line of Credit (STLoC) of EUR 100 million (Euro One Hundred Million Only) for the purpose of financing purchase of rice from India to the Republic of Cuba.

The Latin American Caribbean Business Council is the main body that sets benchmarks for rice exports from India to promote and promote rice exports and interacts with various trade ministries and procurement agencies in Latin America as well as local Indian state governments and Collaborates with relevant stakeholders. As part of the initiative, LACTC, in collaboration with the Rice Exporters Associations of Punjab, Haryana, Uttar PradeshUttarakhand, Himachal Pradesh, Jammu and Kashmir, and Delhi, state agricultural universities and state agriculture departments to raise awareness about supply opportunities for rice and other commodities to encourage farmers to grow high-quality rice in the seven states is planned. Millet.

Through awareness building programme, farmers will be informed that cultivation of millet and rice is an Indian tradition and maintaining this tradition is a collective responsibility as Indian rice is in high demand in the global market. India accounts for about 40% of global rice shipments, exporting to over 150 countries. India’s premium basmati rice exports are expected to rise 15% over last year as major buyers in the Middle East build up their inventories, despite nearly a quarter of a price hike. Higher basmati exports will keep local prices stable, allowing Indian farmers to earn more by driving paddy prices to all-time highs.

India’s rice exports will reach a record high by the end of 2022, as buyers continue to source from the South Asian country due to competitive prices, despite government restrictions on overseas sales, according to government and industry officials. Because Indian rice is the cheapest, exports are expected to remain strong in 2023.

First Published : March 16, 2023, 22:07 IST