M’sia signs record rice import deal with India

MUMBAI: Malaysia has contracted to import a record 100,000 tonnes of rice from India for shipment this month and next, four industry officials told Reuters, in a further sign of improving trade relations between the countries after a diplomatic spat.

The first such purchase this year is already nearly twice the average annual volume of rice Malaysia has imported from India in the last five years, as rival suppliers such as Myanmar, Vietnam and Cambodia placed temporary curbs on exports to save the grain for themselves during the coronavirus crisis.

Malaysia’s purchases would help trim rice stockpiles in India, the world’s biggest exporter of the commodity. “After a long time, Malaysia is making substantial purchases from India,” B.V. Krishna Rao, president of India’s Rice Exporters Association, told Reuters.

Malaysia’s imports from India could rise to 200,000 tonnes this year after the latest deals, Rao and officials from three other firms said.

Malaysia’s Agriculture and Food Industry Ministry did not respond to a request for comment.

Malaysia bought around 53,000 tonnes per year on average from India in the past five years, according to data from the Indian commerce ministry. Total sales to Malaysia was a record 86,292 tonnes last year.

India is now offering white rice for around US$390-US$400 per tonne compared with more than US$450 for other countries, exporters said.

“That is making buying lucrative from India,” said Nitin Gupta, vice-president of trading company Olam India’s rice business. — Reuters