• India is the world’s biggest rice exporter with over 25% share in international markets
• Rice contributes to over 2% of common exports inside the Indian export basket
• Rice exports have grown at a CAGR of almost 14% among FY10-19
• Rice exports for FY20 expected to fall due to geo-political situations, tighter trade norms and better MSP at the commodity through authorities

5th February 2020, Mumbai: US-based totally exchange finance employer Drip Capital has released a record detailing the state of India’s rice exports. Chalking out specific insights from proprietary records and on-floor conversations with exporters, the file analyses the united states’s rice shipments, with Basmati rice occupying a first-rate proportion.
Within the Indian export basket, rice contributes to over 2% of typical exports. The area reported a CAGR of 14% between FY2010 to FY2019. However, rice exports this 12 months have seen a decline throughout the globe with a first-rate dip coming from the Middle East because of heightened geopolitical tensions. A ensuing fall in prices has further aggravated the sector’s woes.
Haryana is the top Basmati rice exporting kingdom inside the united states of america with a CAGR of three% between FY16-19, shipping US$2,410 million in FY19 by myself. Gujarat is 2nd with shipments of US$1,106 million in FY19; however, Gujarat has posted an excellent CAGR of forty seven% over FY16-19. Other predominant contributing states are Delhi, West Bengal and Andhra Pradesh.
Rice being a Kharif crop (August – November) suggests a clear seasonal pattern in exports as properly. The four months post-harvest (December – March) see over forty% of annual exports as compared to the relaxation of the year. The current 12 months’s (FY19-20) rice exports have additionally been trending plenty beneath preceding years’ performance.

Pushkar Mukewar, Co-Founder and Co-CEO, Drip Capital stated, “YTD exports to date are searching bleak with Iran, the most important export marketplace, seeing a 22% fall in shipments. Other export markets just like the UAE (33%), Nepal (23%), Yemen (2%), Senegal (ninety%) and Bangladesh (94%) have additionally visible a fall in rice shipments from India. On the opposite hand, exports to positive countries broke from the fashion to submit growth, which include Saudi Arabia (4%), Iraq (10%), Benin (8%) and america (four%).”