Latin American countries have opened doors for Indian basmati rice for the first time in history. It’s been great news for all the Indian rice exporters and seems like a relief to them.
According to the executive director of AIREA, (All India Rice Exporters Association), Latin America imported rice from the United states earlier. And, largely depended on them. But now, they have turned their eyes and placed the order of Basmati rice to India.
Indian basmati rice prices have seen a hike as the unseasonal rain in September happens. This rain has impacted the crops on a larger scale, ultimately this has created a disruption in supplies. Consequently, the prices of basmati rice have increased by 20-30 per cent.
Why relief for Basmati rice exporters:
The United States has sanctioned Iran. This was the reason for the irregular or delays in payments. For centuries, the major source of exporting business has come from Iran, as Iran and Saudi Arabia are the largest importers of Indian basmati rice.
In recent years, the payments from Iran have become irregular that directly impacting the national income. Henceforth, the business or demand of basmati rice from Latin America works as a relief for Rice exporters and suppliers.
Under the deal of rice between Iran and India, the local oil refiners import crude oil from the Middle East. The flow of payments in the bank accounts have been disrupted. Thus, India stopped the imports of oil from Iran.
Ban on the basmati rice imports has also been withdrawn by Iran lately. In every coming year, after the harvesting is done of rice, Iran withdraws its ban as well.
January to March is the peak season for the exports to Iran which is generally dependent on rice production. There is a record of about 40 per cent sales every year.
Global rice trade
According to the reports, India could account for nearly 45 per cent of the global rice trade in the year 2021-22. The world’s top exporter has the capacity to port 22 million tonnes of Basmati rice this year. And, India is the second leading largest basmati rice exporter in the globe.
The Latin American region, earlier imported rice from the US which only produces less than 2 percent of the total world’s crop rice. The import of US rice has increased over the last 20 years, because of its consistent and reliable qualities.
However, Latin America turned his decision towards India, and it represented a big opportunity for India to obtain the first rank in the global rice trade market. Consequently, it could achieve the position of first largest basmati rice exporter worldwide.
Share of rice
For many European countries, the primary source for imported basmati rice is India. And, majorly dependent on them significantly.
The world’s top exporter could ship the quantity of rice as 22 million tonnes or more than the combined three exporters i.e., Vietnam, Thailand and Pakistan. According to the vice president of rice business.
The Indian non-basmati rice is mainly exported to African and Asian countries, on the other hand, the premium quality basmati rice is exported largely to the Middle east and the United states and Britain as well.
Bypassing years, there would be increased shares in India basmati rice. Although, the pandemic situation due to covid-19 which affected the import and export on a larger scale. The demand for both types of rice did not reduce very much.
Conclusion
Therefore, basmati rice is being popular among several countries. It is widely exported and pays much in the ratio of GDP and in the Indian Government’s economy. As everyone is aware of the business of import and export, this largely affects the economy and the country’s development.
The decision by Latin America will lead India to the highest level and result in an opportunity. Also, it shows the popularity of Indian rice which is the centre of all dishes.