Driven By Weak Currency And Robust Demand From Iran, Basmati Rice Exports On Record High In FY19

Farmers threshing rice. (Nitin Kanotra/Hindustan Times via Getty Images)

Basmati rice, the largest product in the country's farm export basket, shipments reached a record high in both, volume and value terms, in 2018-19 on account of aggressive demand from Iran and weak currency, reports Hindu BusinessLine.

In dollar terms, the net exports of basmati rice grew by 13 per cent to $4.71 billion, while on rupee terms, the growth was 22 per cent, leading to a figure of Rs 32,806 crore. Also, in terms of volume, the shipments grew by about a tenth to over 4.41 million tonnes (mt) over the previous year.

Basmati rice exports accounted for a fourth of India's overall agri-produce exports in the fiscal year 2018-19. The total agri-produce exports from India grew 7 per cent in rupee value terms touching Rs 1.28 lakh crore from the previous fiscal’s Rs 1.19 lakh crore.

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“There was some good demand from Iran after a couple of years. Iran purchased over 1.4 million tonnes during the year,” said AK Gupta, Director, Basmati Export Development Foundation. Along with robust demand coming in from Iran, the falling Rupee value also aided the growth in exports.

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