India rice exports steady

India is likely to export 4.4 million tonnes of rice in 2007, almost the same as a year ago, the United Nation's Food and Agricultural Organisation (FAO) said in its latest outlook. The report said Indian rice export prices were expected to increase with the state-run grain procurement agency Food Corporation of India (FCI) setting a higher rate for purchases from farmers and a supply squeeze in aromatic Basmati rice.

The rise of the rupee against the dollar will also make Indian exports dearer, the report said. The Indian rupee has strengthened against the dollar to reach a nine-year peak of 40.28 on May 28. The rupee was 40.702/712 per dollar at 2.10pm.