A strong rupee is creating problems for the exporters in India. One of the victims of the rupee vagaries is the rice exporter.

According to market analysts, rice exports from India, world's second largest grower of the grain, may fall this year as gains in the rupee make overseas shipments less competitive.

Exports in this fiscal may drop at least 20 per cent from 3.6 million tonnes shipped last year.

Market players said the fall in shipments from India is bound to help Thailand, Vietnam and Pakistan.

The rupee has gained more than 8 per cent against the dollar this year to its highest in almost nine years.

The advantage Indian exporters had over traders from Pakistan and Vietnam has eroded because of the rupee's appreciation. The US currency has dropped 6.1 per cent against the baht this year and is little changed against Vietnam's dong and Pakistan's rupee.

However, strengthening of rupee hasn't curbed the demand for Basmati rice. India is likely to send 1 million tonnes of Basmati this year.