Basmati exports down, non-basmati demand up

Vijay C Roy

Tribune News Service

Chandigarh, August 13

India’s basmati exports have dropped by 89,000 tonnes in the first quarter of the current financial year due to Iran’s embargo from India and refusal of export cargos by several countries after they found traces of pesticides beyond permissible limits. Punjab and Haryana account for more than 60% of basmati exports from the country.

According to Agricultural and Processed Food Products Export Development Authority, basmati exports dropped by 7% while non-basmati varieties saw a growth of 12.5%. 

Basmati exports dropped to 11.70 lakh tonnes in April-June 2018 as compared to 12.56 lakh tonnes in the same period previous year. Basmati exports had been on a decline since April this year, but the June month registered a sharp decline of over 45,000 tonnes.

“The decline in exports is due to temporary suspension of imports by Iran, which is one of the largest buyers for Indian basmati, and importers suddenly following tough pesticides regulation of the EU,” Kohinoor Foods Joint MD Gurnam Arora said.

Basmati exports for FY 2017-18 was at 40.52 lakh tonnes as compared to 39.85 lakh tonnes during the previous year.

Basmati is one of the major cash crops of Punjab and Haryana farmers. Other major basmati grower states include western UP, Uttarakhand, J&K, Himachal and Delhi.

Exporters are worried over the declining trend in basmati exports and want the Centre’s intervention to get exemption from tough pesticide norms. The EU has brought down the maximum residue limit (MRL) level for tricyclazole, a fungicide used by farmers against a disease, to 0.01 mg per kg for basmati.

“The reduction of MRL by European countries is unjust, as countries like Japan and the US have much higher MRL levels,” All India Rice Exporters Association president Vijay Setia said.

While Arora said the government should regulate the sale of pesticides, Setia said the government should empower its extension services to educate the farmers. Though exports declined in terms of volume, it increased in terms of value because of better realisation. The total value of exports was Rs 8,585 crore in April-June this year as compared to Rs 8,181 crore in the corresponding period last year.

Exports of non-basmati varieties, however, witnessed a double-digit growth in the first quarter. It touched 19.79 lakh tonnes during April-June 2018 as compared to 17.58 lakh tonnes, up over 12.50%.

“The increase in exports is mainly because of increased demand from Africa and Turkey. Africa’s import demand has shifted to India from Thailand due to cost competitiveness,” said Saurabh Goel, MD, Rajesh Industries.