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India to overtake Vietnam as world's 2nd largest rice exporter

NEW DELHI - India's rice exports are likely to double to 3.6 million tonnes this year, helping it displace Vietnam from its position as the world's second largest rice exporter. "Competitive prices, timely monsoon rains and surplus stocks have set India on course to become the world's second largest rice exporter in 2002 after Thailand," a rice market report said.

According to the Food and Agriculture Organisation's rice market report, another anticipated bumper paddy harvest and the expected surge in imports by Indonesia and China will enable India to displace Vietnam as the number two rice exporting nation. India's rice stocks on the first of this month have risen to 2.33 billion tonnes from 22.8 billion tonnes in the same period last year. According to the report, despite a projected decline of nearly 2 million tonnes in the paddy harvest, India is estimated to more than double its previous year's exports to 3.6 million tonnes.

However, traders reacting to the report described the estimate as conservative and said if the current trends are of any indication, the actual figure could rise to 5 million tonnes but will be nowhere near Thailand's projected exports of 7.6 million tonnes.

PTI/Asia Pulse - June 21, 2002.