NID: INDIA: RICE PURCHASES TO AFFECT WORLD PRICES

Created: 5/22/1984

OCR scan of the original document, errors are possible

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INDIA: Rice Purchases To Affect Wortd Prkea

umper harvest,tons ol rtce by

slocks used to support India'oTcoiSiriouTor^ysiem hava declined sha'pty becausa ot iho drought lasl year and high domesticwhich lorced consumers to >ety on subsidized nee supples India currenlty is trying loons ol_nce Irom Burma,

Comment New Delhi is more than doubling rice imports this year, parity lo guarantee adequate supp'los (or politically sensitiveouthern India before elections are held later this year. Supplies are tight, and Indian purchases will lend lo raise world prices.esult, other customors lor cheap rice, mainly buyers In Africa that already are trying to cope with drought conditions are likely to be squeezed Out O* Ihondiaoor monsoon trus summer, US Impon requirements could rise further, placing an additional strain cn record-low wortd slocks of export rice.