Export of Basmati Rice from India

Export of Basmati Rice from India


Basmati Rice, the leading aromatic fine quality rice in world trade, fetches good export price in international market for its three distinct quality feature: pleasant aroma, super fine grains and extreme grain elongation. Nearly two third of Basmati Rice produced in India is exported. India accounts for about 70 percent of the world's basmati production. Each year, India produces nearly 2.25 lakh tones of rice. Almost 1.25 lakh tone is consumed by India’s residents. The rest is left for exports.
 

Countries where Basmati Rice is exported:


• Saudi Arabia
• United Arab Emirates UAE
• European Union countries
• United States of America USA
• Canada
• United Kingdom UK
• Germany
• Australia
• Austria

• Russia
• Singapore
• Iran
• Kuwait
• Bahrain
• Spain
• Italy
• France
• Denmark
• Norway


According to a latest report by APEDA, till February 2006, basmati export had already crossed one million tone mark and stood at 11.4 lakh tone, which has been valued at Rs 2,775 Crores.


Year wise Export of Basmati Rice:


Export of Basmati rice

Year

Quantity ('000 tones)

Value (Rs. in Cores)

1996-1997

523.16

1,247.64

1997-1998

593.32

1,685.62

1998-1999

600.60

1,866.25

2000-2001

**

2142.00

2002-2003

710.29

**

2005-till Feb 2006

1140.00

2775.00


Basmati Rice Industry India- Export 2009-2010


Basmati Rice Export in India – Report 2009


Basmati rice industry witnessed certain major happenings in the year 2009. The beginning of 2009 saw Indian Basmati manufacturers, traders and exporters looking for new export destinations with their focus on China. Export of Basmati rice saw saw a revival of demand from west Asian countries, specially Iran. Iran as well as Iraq became hot export destinations for Indian basmati rice exporters for various reasons like Iranians imported large quantities of parboiled Pusa 1121 and with its own farming in doldrums, Iran was increasingly dependent on the world market to supply it long grain aromatic rice.

Saudi rice industry had controlled international basmati rice market for about a decade now but with Iranians coming in the forefront, its advancement was checked which was a good news for Indian basmati rice exporters. Iran made quick payments and displayed a good buying capacity that was detrimental to Saudi Basmati market and that led more companies shifting business to Iran rather than the tough bargaining Saudi Arabia. Due to these developments, Europe lost its premium market status and there was no fear either from Saudi Arabia. With the MEP rise for Basmati rice still a puzzle, India managed to export over 2.5 million MT of Basmati rice to Iran alone.

All was not good in 2009. There was a controversy over Basmati patent rights. Agricultural and Processed Food Products Export Development Authority (APEDA) did a lots of work to get a Geographical Indications for 'Basmati' in order to protect India in world Basmati rice industry from its unscrupulous patenting. There was no consensus on Indopak Joint Basmati registration efforts.



Basmati Rice Export in India – Trends 2010


Looking at the export reports of early 2010, India’s Basmati rice exports this year seem to hit a record 3 million MT levels in spite of subsidy withdrawal by Saudi Arabia, setbacks to exports in Iran and the Dubai financial crisis.

According to the reports in January 2010, Basmati rice export contracts during the first 9 months of fiscal year crossed the 23 lakh MT, stating 43.75% growth over the same period a year ago, on the back of high demand for the Pusa 1121 variety and lower benchmark price.

Basmati rice export is calculated on the basis of the export orders registered with the government’s agri-trade promotion body APEDA as the data on actual shipments come much late. According to Apeda, exporters registered contracts for Basmati rice exports for over 23 lakh MT by the end of December against 16 lakh MT in the year-ago period. In the entire 2008-09 period, the export contracts for Basmati rice was only about 23 lakh MT.



Basmati Rice Brand Promotion with 1 cr Ad Campaign during CWG 2010


Common Wealth Games (CWG) 2010 and rice may not seem to have any comparison but Basmati rice industry of India is rejoicing over the recent announcement about 1 core ad boost for basmati rice during CWG- 2010. APEDA will be vetting the quotes from two short listed companies for hoardings, banners and other promotion material that will make up the best ever campaign that the aromatic, long grained rice variety has got so far. Not only basmati rice brands of India but the country itself can establish its identity through this traditional product. According to an official of the All India Rice Exporters Association (AIREA), once the rates are decided, the deal will be finalized. The ad campaign for Basmati rice during CWG will be funded from the $30 million Basmati Development Fund.

This promotional campaign is also being taken as a bigger effort undertaken for the Fine Foods international exhibition in Australia, due on September 13-16 this year. APEDA plans a superlative stall in this exhibition which will showcase different basmati varieties, their recipes, niche products such as organic basmati, etc. to a multi-cultural audience comprising the world's best food companies. This is certainly a great news for whole Basmati rice industry of India which will get a boost in its exports during and after 2010!



Basmati Rice Export Challenges in 2010


Recently Basmati rice of India which is considered the world's best known aromatic rice has faced a serious allegation in Europe. A Hamburg-based testing firm Euro fins has alleged high levels of plant protection product residue in the last year's basmati rice. This issue is currently being contested by Basmati rice exporters of India with the backing of the commerce ministry. It is really a great challenge as India sells about 290,000 tones of basmati rice in Europe annually.

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