Higher gains on basmati have exporters hoping for potboiler

The unsteady movements of  the dollar has brought anxious moments for exporters at large  but basmati rice exporters from India are envisaging better recoveries this year.

“India recorded a 54 per cent increase in the realisations from basmati exports from April to August. We may register a 10 to 15 per cent increase in exports, with higher realisations of up to 25-30 per cent over last year,” a senior at the Agriculture and Processed Food Exports Development Authority (Apeda) told Business Standard.

“Due to structural problems in Thailand, the overall exports scenario of rice has changed and it has benefited exporters the world over. As the price of food items are going up in the domestic and international market, the price of basmati rice is also rising. This is coupled with the growing acceptability of Indian basmati around the world. We are expecting a quantum jump in the realisations from exports,” he said.

India’s position in basmati exports might consolidate further because the field trials of a new variety, PUSA 1509, have been quite successful and the new crop could be notified very soon. It is a short duration crop with all qualities of PUSA 1121 and might replace PUSA 1121 in the next few years. This is likely to enhance export volume in the coming years, the official added.

Satman Arora, joint managing director of Satman Overseas Ltd (Kohinoor Rice), says all parameters of exports are perfectly placed this year. “The crop is better, the exports demand is higher and the prices are more remunerative. So, we are expecting a 10-15 per cent jump in our exports.”

Vijay Setia, managing director of Chaman Lal Setia Exports Ltd (Maharani Basmati), says the carry-forward stock with exporters is minimal. The rice mills in the past few years have added significant capacities so they are capable to milling higher volumes of paddy. The Indian fine variety rice is getting higher penetration and recognition in West Asia very rapidly so all these factors are likely to contribute to higher sales in the overseas market.

While exporters are making a fast buck, the farmers are also sanguine of getting higher returns. The new short duration variety, PUSA 1509, consumes less water and gives high yield.

Farmers are getting   Rs 3,300 to Rs 3,400 per quintal of paddy this year as compared to Rs 2,200 to Rs 3,300 per quintal in the last season.

Kartar Singh of Sagrur says the mathematics for new basmati fits swell in the current scenario of high input costs as it takes less time.

The Apeda official also confirmed up to five per cent increase in acreage under basmati in Punjab and probability of increase in basmati acreage in the next year due to lucrative returns to the farmers.