Basmati price down 12% on higher acreage, no fresh payments from Iran

Fair average quality variety cost Rs 72 a kg in Delhi wholesale market now, from Rs 82 a month ago

In some relief for consumers, basmati rice has become cheaper 12 per cent during the past one month due to an increase in the area under cultivation and cessation of fresh payments from US sanction-hit Iran, the largest buyer of India’s aromatic rice.

The fair average quality (FAQ) variety is currently quoting at Rs 72 a kg in the benchmark physical Delhi wholesale market, as compared to Rs 82 about a month ago. With satisfactory progress of monsoon rainfalls prompting farmers to bring in additional area under basmati sowing, prices are set to fall lower going forward.

The ongoing payment