• India is considered to be among the most important food producers around the world
    • This is because of the fact that the Indian economy is still quite dependent on agriculture
    • In addition to this, the domestic demand for food grains in the country continues to rise each year. The South Asian nation’s population continues to grow at a steady pace, thereby meaning that there are more mouths to feed
    • This has also meant that India has ramped up the production of food grains such as rice
  • Products such as parboiled rice are not only produced for the domestic market but are also exported abroad
    • Some of the major importers of parboiled rice from India include nations based in the Middle East and West Africa
  • This blog discusses the Import of Parboiled Rice from India by West African countries

The Export of Indian Parboiled Rice to West African nations

  • Parboiled rice can be defined as rice that has been boiled in the husk. It is a popular product in terms of international trade. This is because not all countries have ideal conditions for growing large amounts of rice
    • Countries such as India and Thailand are major producers of parboiled rice
    • Parboiled rice alone accounts for over 20% of the global rice trade
    • There are four major regions of the world that are engaged in the mass import of parboiled rice. These include countries based in Southern Africa, Western Africa, the Middle East, and Eastern Africa
    • In particular, Western Africa is among the areas that have the highest demand for this product
    • Countries such as Nigeria are highly reliant on imports in order to meet the demand in their domestic market
  • Western African countries import parboiled rice from suppliers based in India, Thailand, the US, and Brazil
  • India has performed quite well in this market in recent years, as demand for its produce has shot up
    • According to estimates, more than half of India’s parboiled rice exports are destined for markets in West Africa, indicating the dominance of this region
    • Overall, India is the largest exporter of rice in the world
  • In recent years, Indian parboiled rice exporters have also had to deal with a serious challenge from China
    • China is trying to increase its production in order to capture the market from India
    • On the other hand, other competitors such as Thailand are now falling behind due to the huge domestic demand
  • The per capita rice consumption in West Africa also continues to rise, indicating that these countries are witnessing an increase in the income levels
    • Western African markets have also liberalised the import of products such as parboiled rice, thereby resulting in a sharp increase in imports
  • Indian exporters must continue to target expansion in the West African nations because they present a major growth opportunity
    • Indian exporters must continue to target expansion in the West African nations As millions of people in this region are being lifted out of poverty, Indian exporters can ensure that they capture the market even furtherbecause they present a major growth opportunity

To conclude, it is clear that parboiled rice continues to be imported by Western African countries on a large scale. India continues to be an important player in this regard. Institutions such as Euro Exim Bank offer customised support to traders in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers financial instruments such as Bank Guarantees and Letters of Credit (LCs). Further information about Euro Exim Bank and its key product offerings is available here.