Magnitude, Direction and Determinants of Basmati Rice Export of India

Abstract

International trade is important for sustainable and speedy development of an economy. India is world’s second largest producer of rice and largest exporter of basmati rice in the world. In India, Basmati rice is largest agricultural export commodity. The Compound annual growth rate of export of basmati rice was 7% per annum in physical term and in monetary term its growth was 12%. The export of basmati rice from India has crossed the value of more than ` 32000 crore annually in year 2018-19. In a period from 2010-11 to 2019-20, the highest annual import of Basmati rice from India was done by Iran that was 28.5 % followed by Saudi Arabia (21.9%), UAE (11.48%), Iraq (8.25%) and Kuwait (6.02%). The price of Basmati rice during the 2010-11 to 2019-20 has moved between ` 47.90 per kilogram to ` 77.98 kg per kilogram. The important determinants in promotion of trade in basmati rice were availability of high yielding varieties and inputs, improvement in production technology, availability of different market agencies for purchase, stability in economy, increase in international demand and good trade relations with trading counties.