India''s Rice Exports to Touch 7 million Ton in 2011-12: Crisil.

New Delhi, Dec 12 (PTI) Credit ratings agency Crisil today said it expects India''s rice exports to rise more than three-fold to 7 million tonnes in 2011-12 on growing output and weak production outlook in major exporting countries.

"Expectation of a bumper rice crop in India in 2011-12 (refers to the period, October 1 to September 30), lifting of the ban on non-basmati rice exports, and a weak production outlook for most rice-exporting countries may drive a sharp increase in India''s share in global rice trade," Crisil said.

The agency in a statement added that it estimates India''s share in global rice trade to triple to 21 per cent in 2011-12 from 7 per cent in 2010-11.

"We expect India''s rice exports to reach around 7 million tonnes in 2011-12, up from 2.2 million tonnes in 2010-11," Crisil Ratings Director Gurpreet Chhatwal said.

The benevolent monsoon across rice cultivating states is expected to help the country''s rice production to reach 100 million tonnes in 2011-12, up 6 per cent over the previous year, he added.

According to the Agriculture Ministry, India produced 95.32 million tonnes of rice in 2010-11 crop year (July-June) and the government has set the target of producing 102 million tonnes of the essential food crop in 2011-12.

Emphasising that the move to lift the ban on rice exports could not have come at a more opportune time, Chhatwal added that it may translate into additional USD 2 billion in export revenue.

According to Crisil, an expected decline in rice output in leading rice exporting nations such as Thailand, Vietnam and Pakistan may also favour India''s exporters.

"Rice production in Thailand, the largest exporter, is expected to decline in 2011-12 due to a damaged crop, following floods. The Thai government''s decision to increase its minimum purchase price of rice may also reduce the competitiveness of Thai rice globally," it added.

Depreciation in the value of the Indian rupee against the US dollar since September 2011 may benefit rice exporters, as it makes India''s rice more competitive globally, it noted. PTI RNK

Source : news.in.msn.com