Page 44 - ABFI March 19 issue

exPorts

Basmati shipments set to rise 10%

Get a boost from price jump; but volumes may stay flat at 4 mt

ndia’s basmati rice exports $3.6 billion as against $3.31
for the current fiscal year billion in the same period last
Iare set to grow by a tenth year. However, in rupee terms
in dollar value terms over last the growth was higher at
year on higher realisations. Rs. 24,919 crore (as against
However, the volumes are Rs. 21,319 crore last year) at
likely to be remaining at last close to 17 per cent for the
year’s levels of four million period, aided by a weaker
tonnes. rupee.
Basmati is the largest In volume terms, the
product in India’s agri-export shipments for the period were while there could be 10-15 per Non-basmati rice slips
basket and accounts for about marginally higher at 3.36 cent growth in value terms. While the shipments of
a fourth of the total farm million tonnes as against Setia said the higher the aromatic basmati rice are
product shipments. 3.27 mt. So far, average per- realisation was driven gaining traction, the growth
After a sluggish start unit realisations have been primarily by higher raw trend witnessed in non-
during the early part of the about 6 per cent higher at material prices this year. basmati rice in recent years
fiscal, shipments of basmati $1,070 per tonne as against Basmati paddy prices were has not been sustained this
have gained momentum over $1,010 per tonne in the 10-15 per cent higher this year fiscal.
the past couple of months previous year. on reports of a lower crop. Non-basmati shipments
on good demand from key “The sentiment for exports However, Setia said there is were down 18 per cent in
buyers such as Saudi Arabia, is good. Going by the current no shortage of the cereal as dollar value terms during the
Iran and the European Union, trend, the prices will remain such and market arrivals of April-January period over
said AK Gupta, Director, good. We expect a 10 per cent the paddy were still on in the the corresponding period last
Basmati Export Development growth in dollar value terms,” major mandis of Haryana and year.
Foundation, under the Gupta said. Basmati exports Punjab. An increase in the support
Agricultural and Processed during 2017-18 stood at 4.05 Further, Setia also said price for the common variety
Foods Exports Development mt valued at $4.17 billion. that Iran has re-opened of paddy has made Indian
Authority (APEDA). Vijay Setia, President of its markets for import of non-basmati rice expensive
The latest data (for the the All India Rice Exporters basmati rice after the seasonal in the world market. Also
April-January period) indicate Association said the export curbs imposed to protect its the higher duty imposed by
that basmati exports grew by volume may remain domestic growers during the Bangladesh on rice imports
9 per cent in dollar value to unchanged at around 4 mt, harvest season. has impacted shipments.

44 March 2019 AgriBusiness & Food i ndustr y