Swelling Granaries May Prompt India To Ease Rice Export Curbs

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Indian farmers are in the midst of sowing their main rice crop for the next harvest as the monsoon kicks off. Planting will peak in July and the grain will be collected from late September. The government will assess the sowing of kharif paddy expected to commence next month before taking a call on removing curbs on shipments. We need to look at lifting restrictions on rice shipments as kharif crop prospects look bright.

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India’s food inflation dipped in January, leading market participants to think that the government may ease trade restrictions. However, in February and March, it picked up, with the government further tightening supply controls to keep prices in check. In March, the inflation rose for the second straight month to 190.6 points, up 7.68% compared with the year before.

Presentation- Dibyabharati Nayak

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