Chennai: Basmati exports are facing headwinds in the current fiscal, after two years of strong growth.
Due to uncertainty over exports to Iran as well as likely moderation in average export realisations, Basmati rice exports are expected to be muted in FY20, finds Icra.
In FY19, Basmati rice exports were at an all-time high at Rs 32,806 crore, primarily led by aggressive buying by Iran. Iran has been making aggressive pre-emptive buying in the first half of FY2019 due to anticipated impact on its global trade with re-imposition of US trade sanctions later in that year.
On a comparative basis, Basmati rice exports in 4M FY20 stood at Rs. 10,847 crore, 6 per cent lower than Rs. 11,575 crore in the corresponding period in the previous fiscal. During the current fiscal, Basmati rice exports realisations stood at Rs 75,589/MT for 4M FY2020, only 2 per cent higher than the previous fiscal.