India’s Rice Export Landscape: Basmati Shines, Non-Basmati Struggles Amidst Shipment Curbs
India’s rice exports present a mixed picture: while basmati achieves record highs, non-basmati shipments plummet due to export curbs. FY24 sees a 27% decrease in overall rice volume and 6.5% in value, with basmati soaring by 15% in volume and 22% in value. Saudi Arabia leads basmati imports, with Iraq surpassing Iran. Non-basmati exports decline by 37%, emphasizing the need for balanced export policies to sustain India’s global rice market presence.
India witnesses a contrasting tale in rice exports as basmati achieves record highs, driven by robust demand from key markets like Saudi Arabia and Iraq. However, stringent export measures on non-basmati rice lead to a significant decline in overall rice shipments, highlighting the challenges in balancing domestic supply and international trade.
Highlights
Decline in Rice Exports: India’s rice exports in FY24 experienced a significant decrease of 27% in volume and a 6.5% dip in dollar value, mainly due to restrictions on non-basmati rice shipments.
Impact of Export Curbs: Government-imposed restrictions on non-basmati rice exports aimed at ensuring ample domestic supplies and stabilizing foodgrain prices contributed to the decline in overall rice exports.
Record Basmati Rice Exports: Despite the decrease in non-basmati rice shipments, basmati rice exports surged to a record high, with a 15% increase in volume and a remarkable 22% growth in value.
Basmati Rice Performance: Basmati rice exports reached 5.24 million tonnes, generating a value of $5.83 billion, driven by strong demand from traditional buyers in the West Asian region.
Top Buyers of Basmati Rice: Saudi Arabia remained the largest buyer of Indian basmati rice, followed by Iraq, which emerged as the second-largest buyer, surpassing Iran. Basmati exports to Iraq experienced a substantial increase of 126% in volume and 137% in value.
Decline in Basmati Exports to Iran: Basmati rice exports to Iran decreased by 32% in volume and value, with shipments dropping to 0.67 million tonnes and $0.67 billion, respectively.
Non-Basmati Rice Shipments: Shipments of non-basmati rice declined by 37% to 11.11 million tonnes in FY24, with a corresponding 28% decrease in value to $4.57 billion.
Top Buyers of Non-Basmati Rice: Benin remained the largest buyer of Indian non-basmati rice, followed by Guinea and Togo. Vietnam and Cote D’Ivoire also featured among the top five buyers.
Conclusion
India’s rice export dynamics in FY24 portray a tale of two varieties: while basmati rice flourishes with record-breaking volumes and values, non-basmati rice faces hurdles due to government-imposed export restrictions. The surge in basmati exports underscores its global appeal, especially in traditional markets like Saudi Arabia and Iraq. However, the decline in non-basmati rice shipments signals the need for nuanced policy measures to balance domestic food security concerns with the aspirations for international market penetration. As India navigates through these challenges, sustained efforts are required to ensure the resilience and competitiveness of its rice export sector in the global arena.
Source Link : https://in.investing.com/news/indias-rice-export-landscape-basmati-shines-nonbasmati-struggles-amidst-shipment-curbs-4195998
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