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.