India’s monsoon revives, promises better crops

NEW DELHI: India’s monsoon rains have revived after a lull, improving prospects for good rice and oilseeds crops, but it is too early to say if rice export curbs will be eased this year, the farm minister said.

India, the world’s second-biggest rice producer, has banned exports of popular rice varieties and slapped an export tax of Rs8,000 ($190) per tonne on premium, aromatic basmati as part of efforts to check double-digit inflation.

“By and large, rainfall has been satisfactory, barring four states. But recent reports suggest this week’s rains have brightened prospects of crops,” Sharad Pawar told reporters on the sidelines of a conference on Wednesday.

The weather office, which had forecast normal rains this year, said last week total rainfall since June was 2 per cent below normal although it had been uneven, being 26 per cent above normal in the first three weeks of the monsoon, and deficient in the July 17-23 period.

The June-September rains are vital for farm output and the overall economy as they help to determine rural spending. Only 40 per cent of India’s cultivated land is irrigated. The rest is rain-fed.

Rice exporters hope higher output would allow the government to lift restrictions on the overseas sales of the grain. Such a move could lower benchmark Thai prices.

Vietnam, the world’s second-biggest rice exporter, has lowered the floor price for its 5-per cent broken rice exports by nearly 8 per cent to $600 per tonne, traders said.

The decision led to a 2.7 per cent drop in Thai prices to $730 per tonne from last week’s $750 per tonne. Prices had touched a record $1,080 per tonne in April.

“We know the rice area is higher this time but (it is too) early to say the government will allow rice exports by September. I have to protect consumers’ interest also,” Pawar said.

Indian farmers planted rice on 17.01 million hectares between June 1 and July 25, up 19 per cent from 14.31 million a year ago.

Pawar said his government might consider further imports of vegetable oils to supply to the poor at lower rates.

India, the world’s second-biggest vegetable oil buyer, is importing one million tonnes of oils to soften rising prices.

Pawar said the oilseed-growing states of Andhra Pradesh, Karnataka, Gujarat and Maharashtra had received low rainfall.

Separately, the minister said the government has no “immediate” plans to restrict cotton exports. Textile mills have been requesting the government to curb cotton exports.—Reuters