China may increase exports of rice to Africa, particularly after lower output forced Vietnam, the world's second-largest rice exporter, to halt rice exports.
Beijing may agree to increase exports by as many as 1 million tonnes of early rice to Africa, partly to help clear its own stocks and support domestic paddy prices, industry officials estimated.
"The government will export some early rice purchased last year at minimum prices as domestic stocks are still high and prices are not good," said one industry official, who declined to be identified. Some of the rice shipment would fall under aid packages agreed upon during a summit early this month between Chinese and African leaders, the official said.
Vietnam said on Monday it had halted rice exports after domestic prices surged to record highs. Pests and bad weather have reduced the harvest. Beijing had purchased between 7 and 8 million tonnes of paddy rice from farmers last year at minimum prices of between 1,440 yuan to 1,500 yuan ($183-$191) per tonne.
The minimum price policy is designed to boost farmers' incomes and keep them on the land. Chinese domestic long-grain early rice prices have hovered around the minimum prices because of heavy stocks.
China produces about 180 million tonnes of rice a year. It exported about 850,000 tonnes in the first nine months of the year, an increase of 59 percent.
But analysts did not expect China to increase exports of short-grain rice, the better tasting variety rice used as staple food by a majority of Chinese. South Korea and Japan are the major importers of China's short-grain rice.
"Domestic supplies are slightly tight, and the government would not boost exports as it should secure the food security of its own people first," said one rice trader. Traders said drought this year in south-west China had also reduced the middle and late rice harvest.
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