Basmati exports up 15% in April-July at $2.03 billion on strong demand

Posted on by

India’s basmati rice exports increased by nearly 15 per cent during the April-July period of the current financial year to $2.036 billion on demand from countries such as Saudi Arabia, Iran, Iraq and the United States. In the same period last year, basmati exports were $1.774 billion.

Shipment in terms of volume increased to over 19.17 lakh tonnes (lt) during April-July, an increase of 19 per cent over 16.09 lt in the same period a year ago.

Satish Goel, President, All India Rice Exporters Association (AIREA), attributed the growth in exports to “strong” international demand, especially from traditional buyers in West Asia and also the US. Goel reiterated the industry demand for removal of minimum export price of $950 per tonne as the rice availability has been good.

26% up to Saudi

Saudi Arabia continued to be the top destination for Indian basmati exports during April-July with volume growth of nearly 26 per cent at 3.81 lt over 3.03 lt a year ago. In value terms, exports to Saudi were up 19 per cent at $421.76 million ($353.15 million in same period a year ago).

Iran was the second-largest buyer during April-July with over 6 per cent volume growth at 3.55 lt (3.33 lt a year ago). In value terms, exports to Iran were up 4 per cent at $349 million ($335.88 million).

Iran has currently imposed its customary three-month ban on basmati rice imports to support its domestic growers. The import ban is likely to be in place till end-October and shipments may resume in November, Goel said.

US, 4th largest buyer

Iraq, the third largest destination for basmati exports saw volume growth of 25 per cent at 2.81 lt (2.24 lt), while in value terms the shipments were up 19 per cent at $285 million over last year’s $239 million.

US has emerged as the fourth largest buyer of Indian basmati overtaking Yemen Republic. Shipments to the US in volume terms were up 42 per cent at 90,568 tonnes (63,700 tonnes), while in value terms the growth stood at 41 per cent at $116.14 million ($82.49 million)

India is the largest producer and exporter of basmati rice in the world. It shipped the aromatic rice valued at over $5.83 billion during the 2023-24 fiscal with over two-thirds of exports heading to West Asia.

S Chandrasekaran, a trade analyst, said the market growth and policy request of exporters are inversely related. An introspection is required to address the situation.