Basmati exports for the current fiscal, impacted by the temporary ban imposed by its largest buyer Iran, are likely to be lower by about a tenth over previous year, according to the industry estimates.
Shipments“We expect total shipments for the current year to be lower by about 10 per cent over last year,” said Rajen Sundaresan, Executive Director of All India Rice Exporters Association.
Basmati exports were 3.57 million tonnes (mt) valued at ₹29,299 crore in 2013-14.
Iran accounted for some 38 per cent of overall shipments last financial year.
“So far, we are trailing last year's shipments by 5-7 per cent. There would be a shortfall in the total volumes over last year,” an exporter from Haryana said.
Though the Iranians have hinted at resuming imports from March 22, total Indian shipments for the current financial year would still be lower.
Iran had barred rice imports from other countries from mid-November on higher domestic crop.
Iranian authorities have recently assured the Indian officials that the ban will be lifted shortly and the re-registration process of suppliers would commence soon.
NotificationA notification to this effect is likely to be issued by the Iran by March 21.
Higher demand from traditional markets such as United Arab Emirates and Qatar, and newer markets mainly in Africa such as Algeria, Angola, Ethiopia, Kenya, Nigeria and Tanzania among others have helped off-set the impact of Iranian ban to certain extent.
European countries such as Denmark and Czech Republic have seen an increase in basmati shipments from India.