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| Basmati rice exports may cross 2 MT on Iran demand |
| Newswire18 / New Delhi Jun 17, 2009, 00:00 IST |
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India’s basmati rice exports are likely to top 2 million tonnes (MT) in the current marketing year ending September 30, boosted by high demand from Iran and inclusion of Pusa-1121 in the premium rice category, industry officials said today.
Tilda Riceland Director RS Sehadri said, according to customs data, India exported record 1.8 MT basmati rice in the financial year ended March.
“I think exports will grow by at least 10 per cent this year. We could see basmati exports at 2-2.1 MT this year,” he said. Seshadri said last year’s growth in basmati exports was primarily due to the inclusion of Pusa-1121 in the basmati rice category.
| A ROYAL RISE |
| * Exports are likely to rise due to high demand from Iran and inclusion of Pusa-1121 in the premium rice category |
| * In 2008-09, India exported around 800,000 tonnes of Pusa-1121, which led to record total basmati exports, despite stiff competition from Pakistan |
| * This year, the minimum export price of basmati is unlikely to hamper exports, as India’s export price is way higher than the floor price at present |
| * Currently, Indian basmati prices are being quoted at about $1,300-1,500 a tonne, free-on-board |
The government last year expanded the definition of basmati, and it now recognises even those rice varieties as ‘evolved basmati’ which have at least one traditional basmati grandparent. Under the earlier definition, rice varieties had to have a traditional basmati parent to be considered basmati.
The change in the definition of basmati, paved the way for Pusa-1121 to be considered basmati. In 2008-09, India exported around 800,000 tonnes Pusa-1121, which led to record high basmati exports, despite stiff competition from Pakistan and loss of business on account of high minimum export price and export tax on the commodity, an official with another basmati export house said.
The government had last year set the export floor for basmati at $1,200 a tonne and also imposed an export tax of $200 a tonne to discourage exports and conserve domestic supplies.
It has since revoked the export tax, and lowered the export floor to $1,100 a tonne, as rice output this year is seen at a record 99 MT.
This year, the minimum export price of basmati is unlikely to hamper exports for now, as India’s export price is currently way higher than the floor, the official said.
Indian basmati is quoting at about $1,300-1,500 a tonne, free-on-board. Seshadri said in the current financial year, the growth is basmati exports is likely to come from higher demand in the west Asian region, particularly from Iran.
He said Iran has already bought about 600,000 tonnes Indian basmati, and could import up to 1 MT more till next year due to a local shortfall.
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