Traders’ body urges Centre for a new policy to promote non-basmati rice exports

The Federation of Association of Maharashtra ( FAM) has written to the Union Agriculture Ministry asking for a new policy which will promote non-basmati rice in the export market. FAM has said that the export volumes of basmati has stagnated and non-basmati varieties are losing ground to cheaper varieties from China, Indonesia and Vietnam.

FAM is one of the largest organised bodies of traders, merchants and entrepreneurs in the country.

Losing on exports

Rajesh Shah, Senior Vice-President of FAM, told

BusinessLine that in the last 3-4 years the volumes of basmati rice exports have been maintained but in other varieties the volumes have dipping. For 2018-19, about 44.10 lakh tonnes (lt) of basmati was exported and in 2019-20 only a marginal rise of 44.50 lt were shipped. But the non-basmati varieties export market, which was at 75.34 lt in 2018-19, has dropped to 50.35 lt in 2019-20.

Shah said that FAM has written to the Centre that the African and Europe markets have started moving and importing the cheaper Chinese and Vietnamese varieties. The Indian farmers and traders are losing their markets. Basmati brands are already established and the world has no other option but to come to India and Pakistan, while for non-basmati varieties a lot options exist.

It must also be noted that our farmers also produce fragrant and high quality varieties such as Ambemohar, Sona masoori and Indrayani. These should be promoted by the Government in international markets through exhibitions and other promotional activities. Exports of these three varieties will help maintain market volumes internationally, he said.

He added that acreages of these three varieties also must increase, which will provide assured prices to the farmers.