India?s basmati (aromatic) rice exports crossed a record 2 million tonne (mt) in the last financial, in the process helping the country recoup some of the losses suffered because of more than two-year-long ban on non-basmati rice exports.
Non-basmati rice was one of the biggest components of India?s basket of farm exports, prior to its ban in April 2008. Officials said with hopes of normal monsoon expected to boost paddy production this year as well, India?s impressive showing in basmati rice exports could continue this year too.
Basmati rice exports topped 2 million tonne largely because of bumper local harvest and strong demand from Gulf countries, particularly for the newly classified PUSA 1121 variety.
According to the latest data compiled by Agricultural and Processed Food Products Export Development Authority (Apeda), exports of the premium aromatic rice has increased by an impressive 44% in comparison to 1.6 million tonne in 2008-09.
In value terms, the export of basmati rice has crossed Rs 12,000 crore last fiscal against Rs 9,476 crore achieved during 2008-9.
This has gone a long way in wiping off the almost Rs 7,000 crore annual loss that India suffered because of ban on non-basmati rice exports imposed couple of years to check rising local prices.
?We are expecting the rise in exports to continue during the current fiscal as well,? Apeda chairman Asit Tripathy told FE.
Although commerce ministry is yet to compile the final figure, an Apeda analysis on the basis of trade information has pegged the total exports at 2.2 million tonne in 2009-10.
Rise in rice exports is also attributed to demand of PUSA 1121 variety of rice in mostly gulf countries.
Iran had emerged as one of the biggest export market for Indian basmati in the last two years, with almost 50% of the country?s exports being consumed by Iran.
Besides countries such as United Arab Emirates, Saudi Arabia, UK and the US have also emerged as major export destinations for Indian basmati rice.
The government had lowered the minimum export price (MEP) of basmati rice from $1,100 to $900 a tonne in September 2009, to boost exports. Pakistan, a key competitor of Indian basmati rice, has altogether abolished the minimum export price on basmati.
Such is the popularity of the Indian rice that area under basmati rice has increased by around 30% last year as it requires less water for cultivation. Many farmers in Haryana, Punjab and Uttar Pradesh have shifted to cultivation of basmati during last kharif season because of failure of monsoon.
Although country?s exports basket of fruits, vegetables, meat, poultry, dairy, flowers have been rising sharply over the last five years, the ban on non-basmati export had been hitting the overall volume of exports.