Indian basmati rice exports likely to grow in FY 2015-16

The Dollar Business Bureau The Indian exporters of Basmati Rice are likely to get a boost in the new financial year with a few of the global economies mulling to import the same from India. After a brief-break since October 2014, Indian Basmati Rice exporters are expected to get market entry into  Iran, which is likely to start in April 2015. Besides Iran, now, it seems China is looking forward for importing basmati rice from India. According to latest reports, India is likely to export basmati rice to China this year, with the exporting units registered with National Plant Protection Organisation (NPPO) being declared infestation-free. In this regard, the Government of India is expected to send a list of Indian rice mills, registered with NPPO and declared as infestation-free by the same, to Chinese authorities and post this, the orders are expected from Chinese firms, informed Punjab Rice Exporters' Association, according to reports. According to a statement from All India Rice Exporters’ Association (AIREA) president, the Indian rice exporters were invited by the Chinese government for a visit to see the market and also make necessary presentations. The statement also informs that it may take few more years for India to penetrate China, but, China has got a huge population and enough potential to become a big export market for Indian basmati rice. Increasing rice exports to China has been one of the key points in India’s agenda towards containing the increasing trade deficit with China. Currently, Vietnam and Thailand are the major rice suppliers to China, besides Australia and Pakistan and if everything goes positive, India, the world’s second largest producer of rice would soon join the list of rice suppliers to China, thereby providing an expanded market scope for Indian rice exporters. Indian basmati rice exporters are also keen to expand their range to new markets like South Africa and Mexico, besides maintaining a balance with the traditional markets like Iran, Iraq, Kuwait, Saudi Arabia, and United Arab Emirates. Meanwhile, the Commerce Ministry of India is also looking to promote Basmati and non-Basmati exports to Africa and as a part of the strategy, the Indian Ministry is also planning to send Indian delegation to some African countries and also hold meetings with the possible potential rice importers of Africa.  

This article was published on March 27, 2015.