Basmati exports at risk from EU regulations, impending Iran sanctions: Icra

In the near term, any reduction in demand for basmati rice from India will depress prices across the chain, even for those sellers who are not exposed to the markets in question

India’s export of basmati rice faces uncertainty after registering an impressive growth during the last financial year and the current year, so far, due to adverse developments in foreign markets.

Data compiled by Agricultural & Processed Food Products Export Development Authority (Apeda) showed India’s basmati rice exports to be at Rs 26.87 billion for the financial year 2017-18, a rise of 23 per cent from Rs 21.51 billion in the previous year. In volume terms, however, the growth in exports was marginal at 4.06 million tonnes for 2017-18 from 3.98 million tonnes in the previous year.

Going forward, however, India’s