Indian Basmati Rice Export has been passing through the bleak phase as the Indian rice export to the top most buyers Iran and Iraq has slowed down by nearly half in the first four months of the fiscal year 2014-15(April – March) and hence will have the impact on the domestic prices .
This year basmati has been sown in a record area of 2.1 million hectares (mh), an increase of 31 per cent over last year’s acreage of 1.6 mh. Basmati is the largest exported agri-commodity and the shipments last year stood at a record 3.75 million tonnes valued at ₹29,299 crore.
The Indian basmati rice export to the Iraq has declined by 47% from around 124,000 tons to 65,960 tons in April-July 2014 from year to year.Exporters consider the ongoing Islamist
insurgency problems in Iraq, a main reason for slowing down of its rice imports.
On the other hand India’s basmati rice exports to Iran also halved to around 330,000 tons during the first four months of FY 2014-15 due to stringent quality norms and increase in import tax from 22% to 40%.
For resolving the problems that exporter are facing ,due to decline of the rice export they are trying to negotiate with the Iran to relax their quality norms.Iran had revise the presence of arsenic in the rice being imported to 80 parts per billion (ppb) from 120 ppb. President,All India Rice Exporters Association (AIREA) has said that if these trend continues than India will not be able to meet its last year’s export level of around 3.8 million tons.
According to government data, the area which falls under the khariff crop s as on 12 September, as per reports received from States, stands at 99.91 million hectare as compared to 103.2 million hectare at this time last year. Rice has been sown in 36.69 million hectares, coarse cereals in 17.58 million hectares, pulses in 9.92 million hectares, oilseeds in 17.52 million hectares and sugarcane in 4.87 million hectares.