by Tractor Junction

The Basmati Rice crop is likely to grow by 15-20% this year due to farmers planting more land with good rains. The All India Rice Exporters Association (AIREA) expects a higher crop production. The quantity of basmati crop production will be estimated after the survey. 

India’s basmati rice exports rise by 15 percent during April-July to more than $2.036 billion. With the large crop and available stock, the government might consider the minimum export price. Further, this will boost the exports for growth in the commodity’s exports.

Key Points:

• Basmati crop size may rise by 15-20% this year.
• More land and good rains are helping this growth.
• Prices of paddy are lower due to the expected good crop and export issues.
• Iran’s import ban is affecting basmati prices and exports.
• Indian basmati exports grew by 15% from April to July.

Why Is Basmati Production Increasing?

This promising rise in production is mainly due to farmers planting more land, encouraged by good rainfall and high returns from previous seasons. Satish Goel, president of AIREA, explained that favourable conditions are motivating farmers to cultivate more Basmati rice this year.
Last year, the Agricultural and Processed Food Products Export Development Authority (APEDA) estimated that Basmati production reached around 98 lakh tonnes, with over 21 lakh hectares of land under cultivation. This year, early indications suggest that both the area planted and the total yield will be significantly higher.

Impact on Prices and Exports

Despite this rise in production, prices for Basmati paddy have dropped. This is partly due to expectations of a bumper crop and partly because of challenges in the export market. For instance, Iran—one of the biggest importers of Indian Basmati—has imposed an import ban, which has affected both prices and export figures. However, on the brighter side, from April to July this year, India’s Basmati rice exports grew by 15%, reaching over $2 billion in value. With the expected large crop and adequate stock, the government may reduce the minimum export price, which could further boost exports.

Future Outlook for Basmati Rice

The future for Basmati rice production looks bright. If current conditions hold, production could rise by as much as 20% this year. While the industry is dealing with some export challenges, particularly with the Iran ban, there is still significant optimism for a strong performance in the global market.

Published Date: September 13, 2024