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The global availability of Basmati Rice has increased to 67.10 million tons in the financial year 2019 to 2020.
At present, the rising tension between Iran and the USA would hit the export value of the premium quality of rice. Instead of that, in the current fiscal month of January 2020, Basmati Paddy Prices are again recovered by 2 percent. The price of Basmati has increased in the global market too in the current harvesting season, according to the Indian Commodity exchange.
The Syrup market is witnessed to significantly grow in the coming years. Different varieties of rice are used to prepare the syrup in the market. Bharat Glucose Pvt. Ltd. is one of the largest company in India for the development of the products, holds a large share in the global market. Based on consumption volume, the main major markets of the products are:
Rice Exporters Are Getting Affected in Ballari District of Karnataka
- The rising tension between Iran and the USA in the last one month has stopped the importing of Rice from the Ballari district of Karnataka.
- Kampli rice has a great demand from Iran. It is also exported to the Middle-East countries. The ongoing tension between the nations will affect the income of farmers because Iran is being a major consumer of the particular rice. Every year a large volume of the rice has been exported from India to Iran.
- In the month of October, after the post-harvest season, every year the rice is getting exported to Iran and Middle-East. But in the current fiscal year due to the indefinite ban on the import of rice, the prices of the rice will be down in the market. Rice Exporters are getting affected due to the falling price in the market.
Reasons for Low Price in the Export Market
- Due to suitable environmental conditions and good monsoon, the production of rice is huge in the district. But the prices of the rice are falling down due to a lack of international demand from the market.
- In the uncertain situation of the market, traders are not able to gain good payments from the importers. From December onwards this year farmers are not able to send rice products to Iran, traders are not still got their previous payments from importers of the rice.
- Last year during the same time, farmers had got a profitable price but this time the same quantity of rice is sold with less amount of price.
Future Prospects of Trading with Iran
Despite the good harvesting season, the falling prices have made farmers worry and they are waiting for the trade begins soon so that farmers who have stored the rice could be benefitted.
The Government of India established the Agricultural and Processed Food Products Export Development Authority (APEDA) in 1985 for imposing some rules and regulations on exports of agricultural commodities like rice, wheat, and pulses, etc. The main objective of APEDA is to expand of Indian export market worldwide.
The Demand of Basmati Rice Market
- The business of agricultural commodities like Basmati Rice is unquestionably dominated by the import/export of rice businesses in India, which over the years and around the globe has been expanding in the last few decades.
- As India is the world’s largest producer of high-quality basmati and non-basmati rice, therefore, a large volume of rice has been exported to the world every year. A good chunk of the particular Rice Exporters in India have a great share in the world market.
- With the increasing demand for the rice globally due to its elongation and aroma, the export volumes are also increasing from India day by day. This factor is enhancing the production capacity of rice in India which will turn increasing a large share rice export market worldwide.
Major Key Players in the Indian Market
Basmati Rice Market can be divided into two segments. One is Indian Rice Market and the other one is the Pakistani Basmati Rice market. The major manufacturers of the rice in the world market are India, Pakistan, and Kenya. The major key players of the rice in the world market are: