Basmati exports likely to touch 40 lakh-tonne mark

Vijay C Roy

Tribune News Service

Chandigarh, March 31

Thanks to lower global prices and increase in demand from countries like the UAE, Iraq, Iran etc, basmati exports from India is likely to touch a historic high of 40 lakh tonne in 2015-16 against 37 lakh tonne in 2014-15 while it was 37.5 lakh tonne in 2013-14.

Experts said despite the low realisation to farmers this fiscal as compared to 2013-14, the area under basmati cultivation in Punjab and Haryana, which accounts for around 70% of the total basmati production in India, would be more or less the same in 2016-17.

Basmati fetches higher returns than other varieties. The exporters cite high realisation, which is around Rs 2,000 to Rs 2,500 per quintal, as the main reason behind farmers opting for the crop.

In 2015, the total area under basmati cultivation was 21 lakh hectares as compared to 21.3 lakh hectares in 2014.

According to the data, in 2014-15, the basmati prices hovered between Rs 1,150 and Rs 4,000 a quintal, while in 2015-16, due to bumper harvest in Punjab and Haryana, the price of the crop crashed and with the government’s intervention it was between Rs 925 and Rs 3,100 per quintal.

“This year the exports would cross 40 lakh-tonne mark. However, prospects for the next year are worrisome as it depends upon a lot of factors. Having said that, I believe the price of the crop would be more or less the same,” said Gurnam Arora, joint managing director, Kohinoor Foods Ltd.

He said the buffer stock with millers who are having assured supply chain is around 5% more than last year. As far as the exports for 2016-17 is concerned, the exporters are optimistic and expect that the market will respond favourably on account of GI tag and other factors.

According to the Agricultural and Processed Food Export Development Authority (APEDA), in 2015-16 (April-December), it was 30.6 lakh tonne while in 2014-15, the total exports were 37 lakh tonne.

R Sundaresan, executive director, All India Rice Exporters Association, said, “It is beyond doubt that the aromatic rice variety offers high returns to farmers, so farmers are more inclined to it. Even during last year, when there was significant increase in area and production, it gave higher returns to farmers. Moreover, it consumes less water than the non-basmati varieties. So, we foresee acreage under basmati would be more or less same and so as the exports.”

Exporters also feel that Iran's resumption of import from December 15, 2015 may provide some cushion to exporters. Due to sanctions imposed on Iran, basmati exports to Iran were suspended from October 2014 to December 2015.