ICRA sees India FY17 basmati exports largely unchanged at 4 million tonnes.

India exports of basmati rice are likely to be around 4 million tonnes in the current financial year that slightly down from 4.04 million tonnes last year. The country exported 3.25 million tonnes in Apr-Jan, down 5.3% on year. Demand from Iran has the potential to provide a fillip to India exports. Average realisations from exports for the current fiscal are likely to be lower at 210 billion rupees, against 227.2 billion in the previous year Prices of basmati rice rise by 20-25% during the recent three-month procurement season that ended December, due to lower supplies and firm demand. Output of basmati in India is estimated to have fallen 23% on year to 6.2 million tonnes in 2016-17 (Jul-Jun), due to a significant reduction in acre. Basmati rice exports is likely to grow to Rs 22,000-22,500 crore and volume to around 4.09 million tonne mainly supported by an increase in average realisations in FY18.