India's rice exports likely to dip by 18-20 pc in FY20: Report

India's rice exports are expected to witness around 20 percent decline this fiscal, due to heightened geopolitical tensions in the Middle East and tighter trade norms, a report said on Thursday. According to a report by the US-based trade finance company Drip Capital, the export of rice has witnessed a significant decline across the world owing to heightened geopolitical tensions in the Middle East -- one of the biggest export markets.

Following this, India's rice exports are likely to go down by 18-20 percent in 2019-20, the report said. "Exports so far are looking bleak with Iran, the biggest export market, seeing a 22 percent fall in shipments. Other export markets like the UAE (33 percent), Nepal (23 percent), Yemen (2 percent), Senegal (90 percent) and Bangladesh (94 percent) have also seen a fall in rice shipments from India," Drip Capital co-founder and co-CEO Pushkar Mukewar said.

On the other hand, exports to certain nations defied the broader trend and registered an increase. Saudi Arabia witnessed a 4 percent raise, while for Iraq it was 10 percent, Benin (8 percent) and the USA (4 percent), he added. Meanwhile, the report revealed that Haryana is the top basmati rice exporting state in the country with an annual growth of 3 percent between FY16 to FY19. The state has shipped USD 2,410 million in FY19 alone.

Gujarat is the second biggest exporting state with shipments of USD 1,106 million in FY19. Other major contributing states are Delhi, West Bengal, and Andhra Pradesh, the report said.

The report further noted that rice being a Kharif crop (August – November) shows a clear seasonal pattern in exports as well. The four months post-harvest (December – March) see over 40 percent of annual exports compared to the rest of the year, it said.