Indonesia may turn to India for rice

Indonesia may turn to India for rice

NEW DELHI (Reuters): Thailand's decision to suspend rice
shipments to Indonesia and a Vietnamese ban on fresh exports
could force Indonesia to turn to India for supplies, Indian grain
traders said yesterday.

"I am quite bullish about rice sales to Indonesia this year,"
Gurnam Arora, joint managing director of Satnam Overseas Ltd, a
leading New Delhi-based rice exporter, told Reuters.

"Exporters are booking a lot of orders to Indonesia, Africa
and Bangladesh," said Arora, the president of the All-India Rice
Exporters' Association.

Thai rice exporters have decided to suspend shipments to
Indonesia unless backed by letters of credit from third
countries.

Drought-stricken Vietnam has suspended all new rice export
contracts, but has said the ban might be lifted if rainfall
improves.

"As two main rice suppliers are out, and with Pakistan also
not having enough non-basmati rice supplies, Indian rice is the
only -- and right -- alternative available now," Arora said.

Industry officials said rice export prices rose during this
week by at least $5 per ton on good overseas demand.

Traders said Indian five percent broken non-basmati rice for
export was quoted at $275 per ton FOB, 10 percent at $265, 15
percent at $260 and 25 percent at $250 per ton.

Exporters said they would only be able to estimate rice sales
to Indonesia after waiting to see how the country's new
president shapes polices.