For the current year, export of non-basmati are expected to decline further, while that of basmati are likely to be maintained. Export of non-basmati have been declined from 4.3m tonnes in ‘98-99 to about 1m tonnes in the last financial year and exports of basmati rice were down from 6 lakh tonnes in ‘98-99 to approximately 5.2 lakh tonnes in ‘99-00. This decline in export is anticipated due to high Minimum Support Price (MSP) by the govt. of Rs. 475 per quintal against Rs. 440 per quintal. Also higher domestic prices has forced the exporters to demand higher value in the export market. Export competitors for India are reducing their prices. The prime reason for decline in export is having low world market demand last year, it was around 22m tonnes against 27m tonnes recorded in ’98. Non-basmati exports may record even lower this year as most non-basmati rice consuming countries such as Indonesia, Bangladesh, Pakistan and Sri Lanka have had a good crop. Exporters reported that currently producers at farm level give more preference to non-basmati cultivation than to basmati cultivation. In the current year, the country may witness a further downtrend in exports of non-basmati rice, there is a decrease of 25-40 % in basmati production, as reported. |
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