MUMBAI, India: India’s basmati rice exports, which hit near record highs last year, are likely to decline in 2024 as rival Pakistan improves production to supply basmati rice at competitive prices, industry sources said. This is because they serve rice.
Pakistan and India are major exporters of premium long grain rice to countries such as Iran, Saudi Arabia, Iraq, Yemen, United Arab Emirates and the United States.
According to industry sources, India’s basmati rice exports will rise 11.5% year-on-year to 4.9 million tonnes in 2023, surpassing the previous record of 5 million tonnes in 2020 due to reduced supply from Pakistan and stockpiling efforts by importing countries. went It was just a little closer to the body.
Shipments of basmati rice helped the world’s top rice exporter earn a record $5.4 billion in 2023, up nearly 21 percent from a year earlier due to higher prices, according to government data.
Rice Exporters Association of Pakistan (REAP) Chairman Kera Ram Kolani said last month that Islamabad’s total rice exports could increase to 5 million tonnes in the 2023/24 fiscal year from 3.7 million tonnes last year.
Akshay Gupta, head of bulk exports at KRBL Ltd (KRBL.NS), said the depreciation of the Pakistani rupee has made Pakistani exports more competitive. A new tab will open.
Mr. Gupta said, meanwhile, the country’s basmati prices have started to fall due to reduced export demand amid a 10 percent increase in India’s basmati rice production.
Iran, India’s largest basmati rice buyer, will cut its purchases by 36 percent in 2023, but increased shipments to Iraq, Oman, Qatar and Saudi Arabia will make up for the shortfall, according to data compiled by India’s Ministry of Commerce and Industry. did
India’s exports took a hit in September and October after the government imposed a minimum export price (MEP) on basmati rice, but recovered quickly, a New Delhi-based exporter said.
In August, India imposed an above-market price on basmati rice shipments to the European Parliament of $1,200 per tonne, which was reduced to $950 in October.
However, exports have started to weaken again since January and are likely to decline further in the short term as buyers delay purchases due to increased freight costs due to transport disruptions.
