Rice exports from India witnesses a downward trend owing to elections

India is the world's largest rice exporter and in 2017, it had accounted for 25% of the global rice trade valued at US$ 7.73 billion, primarily due to its competitive cost advantage

Belying expectations of upswing, the rice exports from India have witnessed a downward trend owing to elections that took place in some states and upcoming general elections apart from global geopolitical factors in the ongoing season.

While global factors pertain to recessionary trends in key export markets and persisting payments issue with Iran, the domestic factors include among others, big traders avoiding taking long positions due to impending Lok Sabha election in the early months of 2019, as a caution before the results could reflect in amended export terms with any change in political equations.

India is the world’s largest