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Informist, Thursday, Sep 5, 2024

 

By Sandeep Sinha

 

MUMBAI – India exported 3.62 mln tn of basmati rice in Jan-Jul, a record high for the period, surpassing the previous record of 3.29 mln tn set in the first seven months of 2020, according to data analysed by Informist. Exports of the aromatic rice in Jan-Jul rose 21.7% on year because of higher demand from Iraq, Yemen, the United Arab Emirates, and the US. In the corresponding period last year, India exported 2.97 mln tn of basmati rice.

 

In July, the country's basmati rice exports rose nearly 7.8% on year to 471,018 tn, the highest for the month since 2010, because of higher imports by Iraq, Yemen, and the US, according to data from the Directorate General of Commercial Intelligence and Statistics, accessed by Informist. In the same month last year, India exported 436,777 tn of basmati rice.

 

In Jan-Jul, India's basmati rice exports to Saudi Arabia were up 13.9% on year at 804,252 tn. Exports to Iraq rose 36.5% on year to 603,964 tn and exports to Yemen increased 31.5% to 210,166 tn. Exports to the US were up 25.6% on year at 149,765 tn, and those to the UAE rose 16.5% to 200,234 tn.

 

Exports to Iran, another major buyer, fell nearly 7% on year to 407,752 tn.

 

India's share in global basmati rice exports fell to 86.9% in Jan-Jul, with Pakistan accounting for the rest. For July, India's share in global basmati rice exports marginally rose to 83.8% from 83.6% in June. The neighbouring country exported 91,303 tn of basmati rice in July, down from 94,675 tn in June, according to data from the Pakistan government.

 

India's basmati rice exports are likely to remain firm in the coming months as Pakistan has exhausted its stocks and the new crop will arrive only in late October or November. India has sufficient stocks to meet domestic and export demand, traders said. The major basmati varieties currently exported are PB 1121 and PB 1509.

 

"The country's basmati rice exports may exceed 5 mln tn in the current year, and we are likely to have a bumper basmati crop in the current kharif season due to favourable monsoon across the country," Devendra Vora, a wholesale broker, told Informist.

 

At present, high-end basmati varieties and branded basmati rice are being exported as the minimum export price is hurting many small rice mills, and farmers aren't getting good prices for their produce. Vora said the government should do away with the minimum export price for basmati. "The international market for our basmati has been established, people have worked hard, the government should not be disturbed about it, they should support it," he said.

 

In August 2023, the government announced a minimum export price of $1,200 per tn for basmati rice to prevent illegal exports of non-basmati white rice. In October, this was lowered to $950 per tn as higher prices were hurting Indian basmati rice exports.

 

In value terms, India's basmati rice exports in Jan-Jul rose 21.2% on year to $3.91 bln from $3.22 bln a year ago, according to data from the commerce ministry. In the global market, the average realisation of Indian basmati rice in the first seven months of the year was $1,080.31 per tn, down from $1,084.56 per tn in the corresponding period last year, the data showed. 

 

The realisation per tn for basmati exported to Yemen saw a sharp decline at $997.05 in July, against $1,148.55 a year ago. For Saudi Arabia, it fell to $1,063.49 per tn from $1,172.73 a tn. Another big drop in realisation was registered for Iraq – down nearly $67 per tn at $1,000.80. The realisation for Iran was down $10.53 per tn at $967.18, and for the US, it fell $25.28 per tn to $1,276.25.

 

The average realisation of Indian basmati rice exports in July was $1,043.71 per tn, down from $1,087.66 per tn a year ago, the data showed. Pakistan's basmati rice realisation in July was $1,013.46 per tn, compared with $1,208.93 per tn a year ago.

 

Among agricultural commodities, basmati rice was India's top foreign exchange earner in 2023-24 (Apr-Mar), with the figure up 22% on year at $5.84 bln.  End

 

US$1 = 83.98 rupees

 

Edited by Avishek Dutta

 

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