Agri Business

Pak rivalry may hit India’s basmati rice exports

PTI New Delhi | Updated on February 07, 2011 Published on February 07, 2011

BASMATI   -  The Hindu

Aromatic basmati rice exports from India may dip by 10 per cent to 1.8 million tonnes in the 2010-11 fiscal due to increased competition posed by neighbouring Pakistan’s produce in Europe.

“Total basmati rice exports in both volume and value terms are expected to fall by 10 per cent from a year earlier.

Export volume may fall to 1.8 mt,” the All-India Rice Exporters Association President, Mr Vijay Setia, told reporters today.

Mr Setia attributed the slump in exports to growing competition from neighbouring Pakistan in Europe due to pesticide concerns. “Indian farmers are spraying pesticide even after the flowering stage of the crop. And the EU is objecting to this,” he said.

In addition, Indian exporters are not keen to export basmati to Iran — one of their biggest markets — due to delays in receiving payment for shipments on account of sanctions imposed by the US and the United Nations against the West Asian nation over its suspected nuclear programme.

“Iran payment is coming very slowly as it is being routed through Dubai. As a result, it is affecting our market and realisation,” he said.

In the 2009-10 fiscal, the country shipped 2.01 mt of basmati rice, mainly to the UAE, Iran, Saudi Arabia, Europe and the US. Export realisation from overseas shipments of Indian basmati stood at Rs 10,838 crore last fiscal, he said.

In terms of value, exports were down by Rs 2,500 crore. The value realisation was $1,060/tonne in the first 10 months of the current fiscal compared with $1,160/tonne in the same period last year, it said.



Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on February 07, 2011
This article is closed for comments.
Please Email the Editor