Basmati rice exports likely to rise by 9%.

One country's loss is another’s gain.The country's basmati rice exports are likely to rise 9% to 3.5 million tonnes in the 2010-11 season starting October, as crop damage in flood-hit Pakistan might boost demand for Indian aromatic rice, a trade body said.

"India is estimated to export 3.2 million tonnes in the current marketing year ending this month and shipments in 2010-11 are expected to rise to 3.5 million tonnes," All India Rice Exporters Association president Vijay Sethia said.

Export of basmati rice would definitely be higher than last year because demand is expected to increase following floods in the neighbouring country, where basmati rice crop has been damaged badly.

“Less basmati rice production in the neighbouring country could enhance demand for Indian rice, “ Sethi added.

Also, domestic supplies are expected to be higher as production of aromatic rice is seen to exceed last year's output of 4.5 million tonnes on the back of 15-20 % jump in the acreage, Sethia noted.

Indian exporters are shipping basmati rice at the minimum export price of $ 900 per tonne.

According to estimates, approximately seven lakh hectares of Pakistan's rice crop is partially or completely submerged under water.

The US Department of Agriculture (USDA) has revised downwards Pakistan's rice production in 2010-11 to 4.4 million tonnes from its earlier projection of 6.5 million tonnes due to destruction caused by floods.

Similarly, rice exports from neighbouring country is estimated to decline by nearly 40 % in 2010-11 to 2.3 million tonnes, it said.

Source : fnbnews.com