With Rising Global Demand, Kakinada’s Deep Water Port To Be Used For India's Rice ExportsA representative image

For the first time in decades, the coastal state of Andhra Pradesh will use Kakinada’s deep water port to export rice as the Kakinada Anchorage Port which is India's biggest rice-handling facility has experienced congestion due to surge in global demand for India’s rice exports, reports The Economic Times.

The order was issued late on Wednesday (03 February), allowing Kakinada Deep Water Port to handle rice until more capacity is created at the adjoining Anchorage Port.

The congestion leading to a waiting period of up to four weeks at the Kakinada Anchorage Port is due to a surge in demand driven by production shortfalls in other rice-producing countries like Thailand and Vietnam.

“This move means monthly exports from Andhra Pradesh alone will double to 6,50,000 tonnes and rice shipping would begin in the deep water port within days,” said B.V. Krishna Rao, president of the Rice Exporters Association of India.

“India's rice exports this year could rise to a record 16 million to 17 million tonnes from last year's 14.2 million,” Rao added.

While India exports non-basmati rice to Bangladesh, Nepal, Benin and Senegal, basmati rice is exported to Iran, Saudi Arabia and Iraq.

Recently for the first time in decades, Vietnam which is the world's third biggest exporter of rice has started buying rice from its rival India.

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