India may sell 1 mt of rice to help key partner Indonesia

Government may sign MoU that will also help India get a foothold in the Indonesian market

- Puja Das

India may sign a memorandum of understanding (MoU) with its key diplomatic partner Indonesia to sell up to 1 million tonnes (mt) of white rice annually, two government officials said.

India's 20 July ban on non-basmati white rice exports comes even as Indonesia plans to safeguard food security against disruptions caused by the El Nino weather pattern and difficulties with supplies from Vietnam, the current major supplier.

Although Indonesia is self-sufficient in rice production, it procures rice through MoUs when there is uncertainty in meeting its domestic demand. Currently, Indonesia has MoUs for the supply of white rice with Myanmar, Pakistan, Thailand, Cambodia and Vietnam.