Indian Basmati Rice is expecting a rebound in H2 FY2017 and FY2018 recovering from the impact of demonetization. Basmati Rice has been witnessing a good demand in the domestic industry, while the export demand remained subdued during the past two years.
At present lower production volume, lower inventory prices and stable global demand is expected to push up realizations of Basmati Rice, as per ICRA report. A pickup in the export demand is expected in the coming months as majority of export orders are received.
Export value of Basmati Rice is expected to grow by 10% to Rs 25,500 crore in 2017-18 and the export volume of Basmati Rice in FY2017 is expected to be around 3.99 million metric tons. China has opened its market for India and has agreed to import Basmati Rice from 14 companies in India. The export demand is expected to improve further from Iran, as it is also expected to join the order booking.
India’s Basmati sector is expecting a good time ahead recovering from the adverse time it has been facing from the export markets and farmers are also expecting a good remuneration for their produce.
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