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India’s Basmati rice production is expected to rise by 20% in 2024 due to favorable rains and expanded cultivation.
This year, India's Basmati rice production is projected to increase by 15-20%, thanks to more land being used for cultivation and favorable weather conditions, particularly good rains. The All India Rice Exporters Association (AIREA) has predicted a larger crop harvest, although exact figures will be confirmed after a survey.
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India's Basmati rice exports have also grown by 15% between April and July, generating more than $2.036 billion in revenue. With a larger crop and sufficient stock levels, the government may adjust the minimum export price, which could further boost exports and support growth in this sector.
The increase in Basmati production is largely due to favorable weather and higher returns from previous harvests. According to Satish Goel, president of AIREA, farmers have been encouraged to plant more Basmati this year because of these favorable conditions.
Last year, the Agricultural and Processed Food Products Export Development Authority (APEDA) estimated that Basmati rice production in India reached about 98 lakh tonnes, with over 21 lakh hectares of land being used for cultivation. This year, both the planted area and yield are expected to be significantly higher.
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While production is increasing, prices for Basmati paddy have dropped. This is due to the expectation of a bumper crop and ongoing challenges in the export market. One major challenge is Iran’s import ban, which has lowered both Basmati prices and export volumes. Despite this, India’s Basmati exports grew by 15% from April to July, contributing over $2 billion to the economy. The government may soon reduce the minimum export price, potentially enhancing future export growth.
The future of Basmati rice production in India looks bright. If conditions remain favorable, the crop yield could rise by as much as 20% in 2024. Although there are some challenges, particularly with the Iran export ban, the overall outlook for global demand and export growth remains positive.
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India's Basmati rice production is set to grow by up to 20%, driven by favorable weather and expanded farmland. While export challenges, like Iran's import ban, persist, strong global demand and potential government adjustments could boost exports, making 2024 a promising year for Basmati farmers.