26-Jun-2013
After two years, Basmati rice could again emerge as India's top agricultural export commodity. During the last two financial years, guar gum had topped the list, in terms of value, primarily due to the shale gas boom in the US.
The commerce ministry expects Russia would lift a ban on Indian Basmati imports soon. The move is expected to further increase exports, said a source at the Agriculture & Processed Food Products Development Authority (Apeda). Currently, a Russian delegation is inspecting rice mills in India. The delegation would provide a report on lifting the ban, said the Apeda source.
Russia, earlier a net importer of Indian Basmati, had imposed a ban on these imports in February, owing to the detection of copra beetle infestation.
In April and May, Basmati exports rose about 25 per cent in volume terms and about 65 per cent in terms of rupee value (46 per cent in dollar terms), against the year-ago period, show data from the All India Rice Exporters Association. In April, the value of Basmati exports stood at Rs 2,378 crore (about $400 million), a rise of about 90 per cent (in rupee terms) compared to the corresponding period last year. In dollar terms, the export value rose 67 per cent. In May, Basmati exports stood at Rs 2,250 crore (about $375 million), a 44 per cent rise against May 2012, in rupee terms. In dollar terms, exports rose about 30 per cent in May.
High demand from Iran, after the settlement of the payment mechanism with India following US sanctions, and a sharp depreciation in the rupee led to the rise in export realisations, exporters said. "Basmati exports are strong. Iran has started buying from India, which led to higher exports. Also, a Russian delegation is in India checking the safety standards on pesticide and copra beetle. India is hopeful the ban would be lifted soon," said an Apeda official.
"Going by the trend this year, we expect Basmati to be India's top export item," said R Sundaresan, executive director, All India Rice Exporters Association. In 2012-13, India exported gaur gum worth Rs 21,287 crore, while basmati rice exports stood at Rs 19,390 crore.
Guar gum exports fall
In the first two months of the last financial year, India's guar gum exports stood at Rs 10,856 crore. In the corresponding period this year, exports almost halved, traders said. "Currently, guar processing units are running at 25-50 per cent of the installed capacity, which clearly shows demand is low compared to last year," said Jinesh Dugar, a guar trader based in Rajashtan.
However, gum exporters are hopeful of regaining lost ground. "Demand should pick up in the coming months. The rupee's depreciation should add to sales realisation by not more than Rs 500 crore," said B D Agarwal, managing director, Vikas WSP, India's largest processor of gaur gum, and an exporter. Cheaper substitutes and high carry-over stocks of the commodity by US energy companies had led to a decline in the demand for guar gum in international markets. About 40 per cent of global guar gum demand is accounted for by sectors such as textiles, food and chemicals. In 2012-13, India exported 4,08,574 tonnes of gaur gum, worth Rs 21,287 crore.
Source:-www.business-standard.com
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