Basmati exports are expected to remain stable due to uncertainty over Iran purchases

Mumbai, Ta. September 28, 2019, Saturday

Basmati exports from the country are expected to remain stable in 5-7. India's basmati exports remain stagnant as a result of uncertainty in imports by Iran, stricter standards regarding Europe's pesticide residue and proposed changes in its import policy by Saudi Arabia.

Basmati exports of the country were all-time high with Rs 5 crore in the financial year. This figure was followed by a lucrative purchase by Iran. Iranian purchases have seen a healthy increase in volume, rating agency ICRA said.

After two years of strong growth, India's exports to Basmati are facing challenges in the current financial year. Basmati's exports are expected to remain stable in the current fiscal year, given the uncertainty prevailing in Iran regarding exports and the possibility of a modest decline in the average income through exports.

The current trade sanctions imposed on Iran have created uncertainty over import from it. The European Union has tightened standards with regard to pesticide residues.

The report said Basmati's exports could not be ruled out because of the fact that Saudi Arabia is soon to announce a new import policy.

Meanwhile, sugar mills in India are struggling to export sugar due to low global sugar prices. If the export of sugar from the country is to be increased, then it is necessary to increase the export price, because the exporter cannot afford to export at a lower price.