NEW DELHI : With global commodity prices declining in the first half of FY16, realisations from basmati rice exports from India have plunged.
The average export price of basmati slipped from $1,352 per tonne in April-November 2014 to $897 in the same period in 2015. Now that sanctions against Iran have been lifted, direct exports to Iran will resume, helping improve realisations. Till now, exports were routed through Dubai, at lower rates.Export volumes surged 23 per cent during April-November 2015 over the year-ago period, indicating demand was good at lower price. According to sources in Agri and Processed Food Products Exports Development Authority, the turmoil in West Asian countries and a sharp decline in crude oil prices have put the exporters in a tight spot as the purchasing power of the traders in the importing countries has been hit. The Government cannot do much to bail out the exporters as commodity prices have plummeted globally. Iran's resumption of imports on 15 December 2015 may provide some cushion to exporters. Iran has been a major importer of Indian basmati and contributes 25 per cent to the exports kitty. The revival of exports to Iran after lifting of sanctions has brought a sentimental shift among exporters. We expect an annual demand of 1 million to 1.2 million from Iran, as the traders over there have been running low stocks.
Source: dailyshippingtimes.com
