Rice shortage in Japan spurs trade interest from Indian exporters: sources

India-based rice exporters engaged in talks with Japanese officials to explore fulfilling the latter country's rice needs amid an ongoing rice shortage and price hikes in the market, market sources said May 23.

Representatives from Indian rice export associations held a virtual meeting with the Japanese embassy on May 23 to explore potential export opportunities, sources said.

"Two key conclusions came out of the discussion," Dev Garg, Vice President of Indian Rice Exporters Association, said. "Firstly, India will be inviting Japanese representatives to identify which variety of sticky rice from India is viable for Japanese consumption. Secondly, Indian exporters would be sensitized to the Japanese process, which includes a one-month regime of testing."

Japan is looking to import an average of 500,000-700,000 mt of rice per year and is seriously considering India as a potential source, Garg said. The details regarding whether the export will be conducted through the Japanese state procurement agency or directly via private entities will be determined later, once the suitable rice varieties for export are established, he added.

The US Department of Agriculture projected Japan's imports in the 2024-2025 marketing year (November-October) would reach 700,000 mt, driven by robust demand and an expected rise in private-sector imports, according to its May report.

Deal could boost Indian rice trade

Rice grown in India's northeastern belt is somewhat similar to what Japan consumes, a trade representative from India said, adding, however, that milling capacity in that region is limited, and Japan requires freshly milled rice.

"They specifically need sticky rice with less than 10% amylose content," the representative said. "We do have some grades that fall below the 10%-15% range. ...This is the closest match we currently have, and with some research, we could potentially cultivate more -- something that could be profitable for our farmers."

The representative said that while basmati grades are already being exported, they mostly cater to the Indian diaspora in small quantities.

"India's northeastern belt has premium rice varieties like Joha rice, which is GI-tagged and could be suitable for exports to Japan, as they tend to prefer high-quality grades," an exporter who attended the meeting said.

The exporter said India invited Japanese chefs to test Indian rice grades for suitability, and that Indian exporters were open to participating in the Okasa Fair to explore export opportunities.

"If India begins cultivating and exporting the premium grades that Japan prefers, it could open up a profitable avenue for Indian farmers," the exporter said.

Platts, part of S&P Global Commodity Insights, assessed India 5% white rice at $376/mt FOB on May 22, $6/mt down week on week, while parboiled 5% rice was assessed at $366/mt FOB, up $2/mt on the week.

India is forecast to export 21 million mt of rice in MY 2025-26 (October-September), down 14% year on year, according to Platts data.