India’s exports face a decline of between $4 billion and $5 billion this year after the restrictions imposed on wheat, rice and sugar tradesaid a person familiar with the matter on Thursday, adding that the Red Sea attacks could also affect shipments of basmati rice.
India, the world’s second largest producer of wheat, rice and sugarhas restricted exports of these products to stop the rise in local prices.
New Delhi could consider an alternative route in Africa for basmati rice shipments if attacks by Yemen’s Houthi group persist, which could raise prices between 15% and 20%, the source added.
The alternative route could also affect Indian exports of long grain rice to Egypt and Europe, the source said. He spoke on condition of anonymity because he was not authorized to be informed of the matter..
However, India expects growth in exports of other agricultural products to make up for export shortfall this yearAccording to Rajesh Agarwal, deputy secretary of the Ministry of Commerce.
“If we remove agricultural products whose exports are controlledlike wheat and rice, exports are growing above 4%,” Agarwal told reporters.