MUMBAI: Basmati rice exports are likely to grow to Rs 22,000-Rs 22,500 crore and volume to around 4.09 million tonne mainly supported by an increase in average realisations, rating agency ICRA said in a report. “We expect the export volumes in Financial Year 2017 to be around 4 million tonne (almost similar to the volumes in FY 2016). However, muted average realisations are expected to keep the value of these exports to under Rs 21,000 crore, against Rs 22,718 crore in FY16,” said ICRA Assistant Vice-President Deepak Jotwani.
This is likely to push up Basmati rice prices in the next fiscal, he said.
Resumption of imports by Iran will be keenly watched by the industry as it has the potential to provide an impetus to exports, he added.
The basmati rice industry witnessed moderation over the last few years on the back of subdued international demand, partly attributable to the delay in resumption of imports by Iran.
However, 2016-17 has seen some stabilisation in demand, ICRA said, adding after peaking at Rs 29,300 crore in FY14, the value of basmati rice exports went on a downward trajectory.