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Wednesday, September 08, 2010

Basmati rice exports to jump 9%

NEW DELHI: The country’s basmati rice exports are likely to rise nine per cent to 3.5 million tonnes in the 2010—11 season starting October, as crop damage in flood—hit Pakistan may boost demand for Indian aromatic rice, a trade body said on Wednesday.

“India is estimated to export 3.2 million tonnes in current marketing year ending this month and shipments in 2010—11 are expected to rise to 3.5 million tonnes,” All India Rice Exporters Association President, Mr Vijay Sethia, told PTI.

Export of basmati rice would definitely be higher than last year because demand is expected to increase following floods in the neighbouring country, where basmati rice crop has been damaged badly, he said.

Less basmati rice production in the neighbouring country could enhance demand for Indian rice, he added.

Also, domestic supplies are expected to be higher as production of aromatic rice is seen to exceed last year’s output of 4.5 million tonnes on the back of 15—20 per cent jump in the acreage, Mr Sethia noted.

Indian exporters are shipping basmati rice at the minimum export price of USD 900 per tonne. According to estimates, approximately seven lakh hectares of Pakistan’s rice crop is partially or completely submerged under water.

The US Department of Agriculture (USDA) has revised downwards Pakistan’s rice production in 2010—11 to 4.4 million tonnes from its earlier projection of 6.5 million tonnes due to destruction caused by floods.

Similarly, rice exports from neighbouring country is estimated to decline by nearly 40 per cent in 2010—11 to 2.3 million tonnes, it said. - PTI

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