This Fiscal year has damp note end for Indian rice exporters as Iran has totally banned rice import and on other hand Iraq has increased its import duty to 40%.
This both has taken a toll on Indian rice exporter when the price realization has slipped 15-20% in overseas markets.The average price realisation has declined to $800-1,100 per tonne from $1,000-1,300 per tonne last year.
A Senior AIREA official in a press conference to Economic Times said that “Indian traders are only fulfilling the rice consignments of last year to Iran. He also said that India will said a team of delegations to Iran for discussing upon the Iran ban and to resolve issues in the early Febuary”
Sudden increase in import duty by iran has a major impact on the Indian rice export and hence bound the Indian rice export.
Iran has stopped roice import has the local crop production in Iran is good which is sufficient for Iran.The country imported over 12.5 lakh tonne of rice during April-July 2014, compared with 14.5 lakh tonnes in the year-ago period.
Estimates show that Indian basmati rice export has decreased by 2 lakh tones this year which is now at 35 lakh tonne from 37 lakh tonne in the previous year. Iran has imported over 2.5 million tonne of basmati rice from India.
Basmati rice export has been declined by over 8 % to 19.36 lakh tonne from 21.13 lakh tonnes in the year-ago period. While the export of non basmati rice varieties have been almost same.
Overseas demand for basmati rice has been decreased which has affected the basmati price locally in India also. Farmers are getting Rs 3,200 per quintal for Pusa 1121 crop, compared with Rs 4,100 last year.
Bal Krishna Mittal, managing director of Gurdaspur Overseas, which deals in basmati rice said that retail prices of basmati may further decrease if the rice export demand does not increase.
However, a plus point is rice production in the kharif, or summer, season in 2014 was robust at about 81 lakh tonnes, up from 66 lakh tonnes in the previous year.