Due to huge demand from Iran and West Asia, the shipments for Basmati rice have exceeded 4 lakh tones. Indian Basmati Rice Exports processing, marketing companies such as KRBL Ltd and LT Foods Ltd have observed their profits increase more than three times over last 3 years and the revenues have doubled.
Anil Mittal, Chairman and Managing Director of KRBL Ltd, which sells basmati under the brand name India Gate, have commented that they have observed robust growth in demand for both domestic and overseas. But the major contribution is accounted for the increase in demand in the domestic market due to which the turnover has tripled in past three years. They are expecting a growth of minimum 20 percent in this financial year.
Basmati exports have doubled in volume in past four years to about 4.02 million tones and the export exceeded to Rs.28,189 Crore that is a growth of around 48 percent. Also the prices for basmati have tripled in last five years, which has benefited the growers, rice millers and the traders. The current rate of Parboiled basmati rice is Rs.85 a kg in the wholesale market, while raw rice is at Rs.95 Kg.
The overseas shipments of aromatic rice is expected to grow at a fast pace this year commented Vijay Setia, Director, Chamanlal Setia Exports Ltd. Export to countries like South Africa, Egypt, Azerbaijan, Tanzania, Poland and Ukraine have tripled in past three years. While domestic demand is growing at 10-15 percent, it is expected that exports are poised to grow at 20-25 percent to reach around 5 million tonne mark this year.
As per the reports Thailand is offering 5 percent broken variety at $360-$380 a tonne, free on board compared with similar varieties of rice offered at $395 a tonne in Vietnam, $420 a tonne in India and $430 a tonne in Pakistan.