Rice purchases by India rose 3 percent to 13.4 million tonnes from October 1, when the new marketing year began, on aggressive buying by agencies in the northern states of Punjab and Haryana, government officials said. Higher state purchases will boost government stocks and reduce immediate needs of costly imports by state-run firms.
In October, three state-run companies had tendered to import 30,000 tonnes, but did not proceed as they found the bids too expensive. The worst monsoon in 37 years had raised the possibility that India, which last imported rice 20 years ago, may have to depend on overseas purchases, potentially raising regional prices.
Demand from the Philippines, the world's top buyer, has already pushed up Asian rice prices, with the benchmark Thai 100 percent B grade climbing more than 21 percent from 2009 lows of $520 to hit $630 per tonne last week. The share of government purchases in Punjab rose to 97.6 percent from 91.8 percent in the whole of last year, the officials said.
In Haryana, where private traders bought more than the state-run firms, the state's purchases stood at 42.3 percent, they added. Government officials forecast 2009/10 domestic rice purchases at 26.0 million tonnes, lower than 33.3 million tonnes bought last year due to expectations of lower summer-sown grain output.