Basmati rice production of India to be higher than last year
Basmati is a variety of long, slender-grained aromatic which belongs to the Indian Subcontinent. As of 2018-19, India overseas export was 65% of the overseas basmati rice market. It is being estimated that India’s basmati rice production this year is going to be 7% higher than last year’s level at 8 million tonnes, according to a rice exporters’ association, which can be credited to good rains and availability of local labourers during the sowing period. The domestic market of basmati is seeing a distinct rise along with the export market.
7.5 million tonnes of basmati rice was produced in the previous kharif season and this year as the acreage has increased AIREA is expecting 80 lakh (8 million) tonnes of rice. India exports 4.4-4.5 million tonnes of basmati rice every year, the major chunk of which goes to Iran. According to APEDA, India exported 4.454 million tonnes of basmati rice worth Rs. 31,025.91 crore in FY20. Prices of the common basmati varieties have remained firm in the Rs 850-1,000 per kg range.
The market will open up again in September and a good profit is expected as the export to European market is gaining momentum.