India's Basmati Rice Exports Have Dropped To a Four-year Low
According to government and industry authorities, India's basmati rice exports fell by a fifth from a year before to the lowest level in four years in 2021, as key importer Iran cut purchases as its currency reserves deteriorated.
According to government and industry authorities, India's basmati rice exports fell by a fifth from a year before to the lowest level in four years in 2021, as key importer Iran cut purchases as its currency reserves deteriorated.
According to government data, basmati rice exports in 2021 plummeted 20% from the previous year to 4 million tonnes, the lowest level since 2017.
According to the report, shipments to Iran, India's largest consumer of basmati rice, fell 26% year on year to 834,458 tonnes.
"After its rupee deposits with Indian banks drained last year, Iran was not active in the market for a few months," were the observations made by a Mumbai-based trader with a multinational trading business.
Iran had previously agreed to sell oil to India in return for rupees, which is used to purchase essential products such as agricultural commodities, but after a US sanctions waiver ended in May 2019, New Delhi ceased buying Tehran's oil.
Tehran continued to buy commodities from India with its rupees, but no crude sales were made, causing Iran's rupee reserves to plummet. Exports slowed in the middle of 2021, but buying from Iran, Saudi Arabia, and other important purchasers has picked up in the last two or three months, according to Vijay Setia, former president of the All India Rice Exporters Association (AIREA).
Non-basmati rice is primarily sent to African countries, whereas superior basmati rice is primarily exported to the Middle East. India is the world's largest rice exporter.
Bangladesh, China, and Vietnam upped their purchases, resulting in a roughly 46 percent rise in overall rice exports in 2021 over the previous year to a record 21.42 million tonnes.
According to the president of AIREA, basmati rice output in 2021 would be down roughly 15% from a year ago due to decreased area and the unseasonably wet harvesting season. The export prices of basmati rice have increased by 20% due to lesser availability, but demand for February and March shipments remains strong.
