China Recuperates its Import Relations with India After Two Years

Published On: 08-Jan-2021

After the widespread of COVID-19, China and the Indian military conflicted out of both financial and political frustration. Indeed, in September 2020, this conflict developed a border tension between the two countries. Indian military went on accusing China of deliberately firing into the air. On the other hand, China had given its statement denying all accusations and accused India of taking the first step towards the clash. The persistent clash between the two countries has long been portrayed as China stopped importing non-basmati Rice from India since 2018. This also displayed a high-end force on India export data. 

According to the earlier statistics, China and India had long-term import-export tie-ups. India is the largest export of Rice, and China is the largest importer since 2006. When in 2017-18, India witnessed China taking a step back. It started offering non-basmati rice to other countries at competitive prices. discovered instant change in India export data and China import data when the two nations recuperated their foreign trade relations in 2020. Indeed, China is observing a high demand for broken Indian Rice. For the fiscal year 2021-2022, India has confirmed an order of 5, 000 tonnes of non-basmati rice export to China. 

According to the All India Rice Exporters Association, AIREA, in October 2020, only 150 tonnes of basmati rice has been exported to China. Cybex’s India export data shows that the commodity exported is less than 150 tonnes. It is a round-up figure only. 

Why is China interested in India again? 

China’s major interest in importing from India is quite questionable. However, the situation is not seemingly good for China, as Thailand and Vietnam are no longer producing rice in exportable quantities. Therefore, due to tight supply circumstances, China Import data disclosed the scarcity of rice exporters. 

Another reason China is once again interested in continuing building foreign trade data with India is that other rice exporters are denying to provide commodity to China. The reason being, China has hurt the financial stability of several nations after the widespread CoronaVirus. Countries like India, United States, Brazil, Russia, France, Spain, and the United Kingdom are nowhere near the recovery from the damage done due to COVID-19 epidemic. 

Once again, India is putting its guns down and planning to provide enough non-basmati rice to China. If you are thinking why does China need such a high quantity of broken rice that is primarily produced in South India. The reason is- China manufactures noodles (which is an essential part of their meals) using broken rice. If the country runs out, China will lose its grip. 

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