Basmati sowing likely to go up 25% in FY18 on high demand, normal monsoon

The industry expects Iran to purchase at least 1 million tonnes this financial year

Sowing area under basmati paddy is likely to increase by 25 per cent in 2017 on the back of favourable climatic conditions and forecast of normal rainfall this monsoon season.

The Indian Meteorological Department (IMD) on Tuesday forecasted normal rainfall this monsoon at 96 per cent of long period average (LPA) with 5 per cent of plus and minus error. 

Late beginning of rainfall coupled with dry spells in some parts of major growing regions resulted into less acreage under basmati paddy last year. 

Rating agency Icra estimates the area under basmati paddy at 1.6 million hectares for the financial year 2016-17,