NEW DELHI: Basmati exports to Iran appear to have slowed down on the back of the recent controversy over reports that said that toxic metal traces (arsenic, cadmium and lead) were present in Indian premium rice imports into that country. This could be worrisome to both industry and policy makers. Industry hopes were that a high two million tonnes of Pusa 1121 variety of the high value rice would be exported to Iran this year at an average price ranging between $1350-1500/tonne, thus allowing India to import atleast three tonnes of average quality rice from Vietnam or Thailand for every tonne of Basmati exported.
“There's nothing wrong with this rice (Pusa 1121)...We haven't received complaints from any other country," Executive Director Anil Adlakha of Amira Foods said. However, worries forced the All India Rice Exporters Association (AIREA) to recent ly invite Iranian experts including traders and lawmakers ( a probe into the issue was demanded in the Iranian parliament last month) to check the allegations for themselves and ascertain the purity of Indian Basmati exports.
A Delhi-based trader said “Although small quantities of Basmati rice are still being shipped, there is scope for our rivals, Pakistan, to leverage on the controversy and eat into the Indian market share in Iran.” Mohinder Pal Jindal, chairman of Best Food International Pvt Ltd., a leading basmati exporter to Iran said “Exports haven't stopped; shipments are going,"
However, since Iran was expected to account for a whopping two million tonnes out of a total of 2.5 million tonnes of Basmati expected to be exported, this could increase worries unless contracts for export pick up in a hurry. In addition, Basmati farmers in Punjab and Haryana planted excessive Basmati rice this year in hopes of a good price for exports and could, in the event of exports not picking up, incur big losses since traders would offer lower prices for the commodity.
Agencies quoted A K Gupta, adviser to India's state-run Agricultural and Processed Food Products Export Development Authority, as saying “We are taking up the matter with the Indian embassy. There is no official communication from the Iranian authorities." However, agencies quoted Managing Director Prem Garg of basmati exporter Shri Lal Mahal Ltd. said. “Due to bad publicity, there have been no fresh orders from Iran, but we are getting orders from other countries.
Source : The Economic Times