Home ›› 01 Dec 2022 ›› Asia Biz

India’s basmati rice exports could jump 15%

Agencies
01 Dec 2022 00:00:00 | Update: 30 Nov 2022 22:32:24
India’s basmati rice exports could jump 15%
File photo shows labourers unloading rice bags from a supply truck at India’s main rice port at Kakinada Anchorage in Andhra Pradesh– Courtesy Photo

India’s exports of premium basmati rice are likely to jump 15per cent over last year as key buyers in the Middle East build their inventories despite prices jumping by nearly a quarter, leading exporters told Reuters.

Higher basmati exports would keep local prices firm, helping Indian farmers earn more by pushing paddy prices up to a record high, reports Reuters.

“After the Ukraine war, buyers are afraid of a sudden supply disruption. Every buyer is trying to have enough stocks,” said Vijay Setia, former president, All India Rice Exporters Association. India could export more than 4.5 million tonnes in 2022/23 financial year started on April 1, up 15 per cent from a year ago, he said. Trade ministry data showed that exports rose 11per cent to 2.16 million tonnes in the first half of 2022/23.

A sharp drop in freight charges from this year’s peak was also prompting importers to buy more, Sethia added.

India, the world’s biggest rice exporter, mainly exports top grade basmati rice to the Middle East and non-basmati rice to African and Asian countries. The country has put restrictions on exports of non-basmati rice to calm local prices.

Iran, traditionally the biggest buyer of Indian basmati rice, was an purchasing actively in the past few months, but countries like Iraq and Saudi Arabia have been more active of late, said Anil Mittal, chairman and managing director KRBL Ltd (KRBL.NS), a leading rice exporter.

Iran, Saudi Arabia, Iraq, United Arab Emirates, and Yemen account for nearly two-thirds of India’s basmati rice exports.

“Exports prices rose in the past few months, but still demand is there. Iran is not active but Saudi Arabia and Iraq bought 150,000 tonnes each last month,” Mittal said.

Export prices for the grain have jumped to over $1,450 per tonne from around $1,160 a year ago.

Higher exports have lifted prices of traditional basmati paddy to a record 60,000 rupees per tonne in India, Mittal said.

India’s basmati rice production was expected to jump by around 20per cent after farmers expanded area under the crop, but untimely rainfall in September and October capped the upside in the production, Mittal said.

×