Rice exporters from India are upbeat over the higher projections of basmati output and better prospects of exports.
The loss of crop, in Philippines due to storms and in Thailand and Pakistan due to floods, is driving Indian exporters to speculate for better realisations this year.
The satellite image procured by All India Rice Millers Association and Agriculture and Processed Food Products Exports Development Authority (APEDA) depict an increase in area under basmati from 1,400,000 hectares last year to 1,800,000 hectares this year.
The total basmati production last year was about 4.5 million tonnes and an increase of 25 per cent is expected by the various lobbies (traders, farmers and exporters) this year.
The higher ouput may also fetch better margins to the exporters as the higher supplies would undermine the negotiating power of the farmers.
According to sources in APEDA, the orders procured by rice industry and registered with APEDA were about 3.2 million tonnes. The actual export was to the tune of 2 million tonnes.
Dawat Basmati Rice Managing Director V K Arora said that he expects the exports to increase this year due to new markets eyeing India for best quality basmati. He also expects a 30-40 per cent increase in domestic demand for basmati due to rising disposable incomes.
The only fear of exporters is the hardening of the Indian Rupee vis-à-vis other international currencies. Most of the Indian rice is routed through Iran and this can effect realisations.
