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Higher global demand for Basmati rice, exports may rise 55% this fiscal.


Date: 22-02-2010
Subject: Higher global demand for Basmati rice, exports may rise 55% this fiscal

India’s Basmati exports in the financial year ending March are likely to grow nearly one million tonnes, or 55.5% over last year, amid a rapid increase in global demand for the premium variety, according to a senior official of the industry. “Basmati exports can touch anywhere around 2.5to 2.8 million tonnes as against 1.8mt last year as demand for Pusa 1121 is rising all over the world,” Vijay Sethia, former president of All India Rice Exporters Association, said.

The Indian Council of Agricultural Research (ICAR) has certified Pusa 1121 as Basmati after conducting detailed analysis from samples obtained from the market. The Pusa 1121 variety, which accounts for 60% of Basmati exports, was developed by ICAR and released for commercial cultivation in 2003.

At present, Pusa 1121 covers nearly 0.9 million hectares accounting for 60% of the total area under Basmati cultivation. Currently, Basmati is traded in the international market at $1,000-1,400 a tonne, compared with $1,600 last year. In the domestic market, Basmati is sold at Rs 45.80 a kg, as against Rs 60-200 quoted last year.

India exports Basmati rice to 40 countries, including Iran, the US, and the EU countries. The Gulf nations, especially Saudi Arabia, have high demand for the rice to cater to the high percentage of ethnic population.

Source : fnbnews.com


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