India basmati exports see marginal rise

Basmati exports witnessed a marginal increase in 2019-20 despite setbacks such as delayed payments from Iran and stringent pesticide residue norms by the European Union. The increase in volume is likely to push the area under cultivation by 25% in North, says exporters association.

According to Agricultural and Processed Foods Exports Development Authority (APEDA) data, the basmati exports in 2019-20 was around 44.55 lakh tonnes as compared to 44.15 lakh tonnes during the corresponding period last year. According to estimates, nearly a third of the total volume was exported to Iran.

Punjab and Haryana account for over 70-75% of basmati exports from the country and are major cash crops for farmers. Other major basmati-growing states include western UP, Uttarakhand, J&K, Himachal and Delhi. These states contribute 25-30% to the total exports.

“The increase in volume and expectation of a favourable monsoon will increase the area under basmati. We are anticipating 25% increase in acreage in Punjab, Haryana and western Uttar Pradesh,” said NR Gupta, president, All India Rice Exporters’ Association.

According to the exporters, the exports witnessed volume-wise growth despite pesticide residue issue leading to fall in shipments to the European Union, Saudi Arabia mulling adoption of stringent pesticide rules, and uncertainty due to the imposition of trade sanctions on Iran by the US.

Basmati accounted for 27% of exports under the APEDA basket and it is the largest exported commodity. However, value-wise, exports fell by 5.4% at Rs 31,026 crore, as compared to Rs 32,804 crore in 2018-19.