Weak rupee to boost exports of agri-commodities
The weakening trend in rupee coupled with increase in kharif acreage has brightened the export prospects for agri-commodities such as soyameal, maize and non-basmati rice among others.
The rupee, which has weakened by over 11 per cent since early January from a level of 63.66 against the dollar to a low of 71 on Friday, 31st August, is seen enhancing the export competitiveness of these commodities.
Exporters have already started reworking their quotes by factoring-in on the gain from currency depreciation. While the soyameal prices have seen a correction of around 10 per cent, the rice exporters have lowered their quotes by around 2-3 per cent. Supported by multiple factors including export incentives, prospective Chinese market and buying from Japan as well as South-East Asian and Far East nations, India’s soyameal exports are set to surge in the current financial year.
According to a source, the US-China trade war will only be able to benefit India provided the quarantine restriction by China on Indian imports are lifted.
“This will open a big opportunity for soyameal exports to China, which is buying from Brazil currently.
For non-basmati rice, especially the par-boiled variety, export quotes have been lowered by 2-3 per cent for the African and West Asian markets to about $390 per tonne from $400 earlier. “We have revised our quotes as the currencies of our buyers, mainly in Africa, have also weakened against the dollar,” said BV Krishna Rao, President of The Rice Exporters Association. South Africa is a major buyer of India’s par-boiled rice.