India’s surprise ban on wheat exports has prompted rice traders to increase purchases and place unusual orders for longer-dated deliveries, fearing the world’s top rice exporter may restrict those shipments as well, four exporters told Reuters.
In the last two weeks, traders have signed contracts to export 1 million tonnes of rice for shipments from June through September and are opening letters of credit (LCs) quickly after signing deals to ensure the contracted quantity will be sent even if India restricts exports, the people said.
Those forward purchases come on top of roughly 9.6 million tonnes of rice already shipped out of India this year – in line with record 2021 shipments – and may reduce the amount of grain available for other buyers during the coming months as loading schedules fill.
“International traders pre-booked for the next three to four months and everybody…
