The Jakarta Post newspaper said on Friday that Indonesia's rice shortage could be up to 10 million tonnes this year - more than triple the government's shortfall estimate of 3.1 million tonnes. Indian exporters said the shortfall could force Indonesia to look for rice from India this year.

"India could export up to 500,000 tonnes of rice to Indonesia provided they decide to buy our rice," Gurnam Arora, president of the All India Rice Exporters Association (AIREA), told Reuters. Indonesia has not bought rice from India over the past few years because of quality problems. But earlier this year Indian exporters sent a delegation to Indonesia to sort out differences with Indonesian buyers.

"Indonesia did not have good experience in 1995 but our delegation went there to impress on them the changes we made. Weare quite certain that soon Indonesia will lift the ban on Indian rice imports," Arora said.

Tarun Kumar of the New Delhi-based Space Group said: "India should definitely be in a position to corner a large quantity of exports to Indonesia.

"India is in a position to meet these exports in terms of prices, in terms of logistics and more professionalism on part of the exporters," he added.AIREA executive director Anil Adlakha said export demand was good from Bangladesh, Africa and the Middle East. He estimated that exports in 1998/99 (April-March) could surpass last year's level of 2.1 million tonnes by about 25 percent.

Trade officials said the Indian rice harvest had ended and the crop was expected to be about 82.5 million tonnes in 1997/98 (July-June), up from 81.3 million in 1996/97.

The 1998/99 crop would be even better because of initial reports of good owing operations after plentiful monsoon rains, they said. "Until now, things are in a good position. Most of the rice growing areas are in acomfortable position as far as rains are concerned," Arora said.

Traders said domestic rice prices would start easing during September when the new rice crop starts arriving. Agriculture minister Som Pal expects record foodgrains output of 203-205 million tonnes in 1998/99 compared with 195 million tonnes last year because of good rains.