Basmati rice exports rose sharply by 11 per cent between April and September 2024, compared to the same period in FY24 reaching $2.87 billion, aided by the recent removal of the minimum export price.

Abhijeet Kumar New Delhi

India’s agricultural and processed food exports experienced a slight decline of 1 per cent, reaching $12.13 billion in the first half of FY25. This drop is attributed to a substantial 17 per cent decrease in non-basmati rice exports, according to a Financial Express report. 

Amid a downturn in non-basmati rice exports, India’s basmati rice, buffalo meat, and fresh fruit exports saw notable growth between April and September 2024, compared to the same period in FY24. Basmati rice exports rose sharply by 11 per cent, reaching $2.87 billion. This increase was aided by the recent removal of the minimum export price (MEP) of $950 per tonne, which had been implemented in October 2023 and lifted last month to encourage high-value shipments.

Lifting export restrictions: A potential boost for agri-exports

 Govt officials quoted by the report said that removing restrictions on rice exports will likely lead to a rebound in agri-exports for the second half of FY25. Last month, the government relaxed nearly all limitations on basmati and non-basmati rice exports, including the removal of the MEP and export duties.   

While non-basmati rice exports declined by 17 per cent, reaching $2.25 billion from April to September due to previous restrictions, trade experts expect export volumes to rise with the removal of duties and MEP, restoring India’s leading position in the global rice market. India’s rice exporters are now in a stronger position to regain market share lost last year due to restrictive trade policies, the business-daily quoted Akshay Gupta, business head of bulk exports at KRBL, a major basmati exporter under the ‘India Gate’ brand, as saying. With a projected crop yield increase of 10-15 per cent over last year, the timing of these relaxed export measures is especially favourable.

Growth in buffalo meat and fresh fruit exports

Buffalo meat exports grew by 4 per cent year-on-year, reaching $1.8 billion during April-September FY25, up from $1.73 billion in the previous fiscal year. Officials attribute this growth to the global demand for Indian buffalo meat, recognised for its quality, nutritional value, and safety, processed according to the World Organization for Animal Health (OIE) standards. 

Exports of fresh fruits also showed a slight rise, reaching $0.4 billion in the first half of the fiscal year. However, fresh vegetable exports decreased by 4 per cent to $0.43 billion compared to the same period last year. Officials noted an increasing international demand for specific Indian produce such as bananas, mangoes, processed fruit, fruit juices, and seeds.

Published Date: October 30, 2024