Extraordinary opportunity for Rice Exports from USA to China.
July 24, 2017 at 2:31 PM ,
Rainbow Exports
China opens rice market for exports:
After several years of talks, China has agreed to open its domestic market for the first time for export of American rice, the main reason behind which is being asked to fulfill the growing demand of China's middle class.
America's Agriculture Secretary Sonny Purdue said in a statement that "this market today represents an extraordinary opportunity" in which there are huge potentials of development in the future.
China is the world's largest producer and consumer country, but in recent years China has accelerated in imports to meet domestic demand. In the past year, China imported 5 million tons of rice, which was the highest in any country in the world. After which China has emerged as the largest importer of rice in imports of rice.
America had long been in talks to open China's rice market for its farmers, but there were many types of political, cultural, bureaucratic and economic obstacles standing up.
America is watching it as a boon for American farmers. The US, which has been suffering from sluggish prices for many years, now prices may increase. America's rice farmers produce about 9 million tonnes in a year, and according to the population of China, the total rice of America is about two weeks' total consumption in China.
Michael Klein, Vice President of Marketing, USA, said that if all goes well, then the shipment of rice in China may start by the end of this year or at the beginning of the new year.
American farmers will face many domestic and foreign competition in China. Vietnam and Thailand, which are already exporting China to China, are increasingly trying to export to China. Their crops are heavily subsidized by their governments, the price of their rice can be reduced in the international market. Which will directly affect Indian rice exports.
President Trump insists on reducing America's trade deficit For which the emphasis is on reducing the barriers to steel and agricultural products from China.
In May, the Trump Administration had announced that American animal husbandry would be able to start their beef in China later this year. China had refused the import of American cows since the 2003 Crazy Cow Breakout.
Negative impact on Indian rice
Countries exporting to China can also cut prices of their rice prices in the international market. In the country, the price of rice will also be seen to be seen if the competition is worsening. Europe's market is already seen emerging from India. Due to the high volume of pesticide, Europe has banned Indian rice in European markets. There is a tremendous growth in rice production in the current season. After the last year the government bought the rice, there could be problems in the maintenance of rice in the next season. In rice exports, we have seen constant slippage, which has led to a decline in rice prices. According to market analysts, traders have had high prices of rice, due to which the market is not being allowed to come down. But the buyers are also missing from the market due to which the problems of cash are also being felt in the rice business. Rice traders are not ready to take out their goods at the lower levels. However, starting from September, new rice market will start reaching.
(Source: Indian TV News Channel)
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