For the first time in at least three decades, China has started importing Indian rice due to tightening supplies and an offer of sharply discounted rates from India, Indian industry officials told Reuters.
India is the largest rice exporter in the world and China is the largest importer. Beijing imports about 4 million tonnes of rice annually but, citing quality concerns, has resisted purchases from India.
The breakthrough comes at a time when, because of a border dispute in the Himalayas, political tensions between the two countries are strong.
“China is making rice purchases for the first time. After seeing the quality of Indian crops, they may increase purchases next year,” said B.V. Krishna Rao, president of the Association of Rice Exporters.
For Dec-February shipments at around $300 per tonne, Indian traders have contracted to export 100,000 tonnes of broken rice, industry officials said.
Traditional Chinese suppliers, such as Thailand, Vietnam, Myanmar and Pakistan, have small export surplus supplies and according to Indian rice trade officials, quote at least 30 per tonne more than Indian costs.