We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry. current time
Indian basmati exporters realized 16pc less in 6 months
Through reliable sources, with export prices of basmati declining, it has fuelled speculation about the sustainability of some exporters who purchased basmati paddy at a high price expecting export realisation to move up amid conflict in the Middle East. The average export realisation dropped to below USD875 per tonne last month from over USD1,040 in September last, when the government scrapped the minimum export price (MEP).
“The government should restrict cheap export, even if required unofficially as the brand ‘Basmati’ is taking a hit when in the name of competition some exporters ship at a low price to their overseas buyers. The quality will also take a hit when exporters cannot ship the consignment below the procurement and handling cost,” a trade source was reported saying.
It is learnt through sources that some quantity of basmati has been shipped to Iran below USD700 per tonne last month, even after realising average USD900-950 from markets in the UAE and Saudi Arab.
Sources also reported that the Agricultural and Processed Food Products Export Development Authority (APEDA) though trying to check cheap exports of basmati by getting in touch with those who had contracted at low rates but, the problem still needs to find some solution. Enforcing an MEP or strict quality checking could be some of those, noted the source.
According to an industry data, India exported USD562 million worth of basmati in December 2024, about USD380 million in November and about USD510 million in October. As a delayed Basmati arrival, most of the market arrivals took place during October-December 2024.
According to APEDA, the basmati exports during April-December of the fiscal last, remained as 4.24 million tonne (mt) worth USD4.32 billion against 3.54 mt worth USD3.97 billion a year ago. Finding the micro reasons for the lower realisations, the industry sources said, exports could have been stable at last year’s level had the MEP been retained. Whereas, another section of the trade favours a check on unwarranted competition that drives down the export realisation.
“After removal of MEP, the basmati rice export realisation has witnessed a decline of $250 per tonne. If the current price realisation is compared to previous seasons of MEP imposition, it is around $150 per tonne. The factors contributing to the decline is not macro but micro and exercising quality control measures with a review of the trade strategy is essential in order to protect farm income and export investment,” the basmati trade expert S Chandrasekaran was reported saying.
