Indian Farmers are getting 40 per cent-50 per cent higher prices for their basmati varieties at Rs 3,000-3,500 per 100 kg this year compared to the same period last year, thanks to robust demand from Europe, which buys 10 per cent of the total Basmati rice exported from India.
This, coupled with the likelihood of Iran lifting its ban on basmati imports from India soon is likely to hike prices further by 5 per cent to 10 per cent, trade sources said.
“Exports to European countries have been on the rise over the past few months. This is good news for the industry and farmers. Current prices are 40-50 per cent higher than the same period last year,” the All India Rice Exporters’ Association said.
There was no carryover stock of Basmati crop from last year and with this year’s crop being less, there has been a lot of buying, the association said.
As per trade, Iran imports about 10 lakh tonne of Rice every year to supplement its domestic production of about 20 lakh tonne. Of this, about 7 lakh tonne is imported from India.