Thu Sep 19 08:26:58 UTC 2024: ## Indian Basmati Industry Set to Reach Record High Revenue This Fiscal Year

**New Delhi:** The Indian basmati rice industry is poised for a record-breaking year, with revenue projected to reach an all-time high of nearly Rs 70,000 crore, according to a report by Crisil Ratings. Despite a moderation in growth from last year’s phenomenal 20%, the industry is set to see a 4% increase in revenue this fiscal year.

This growth is attributed to a number of factors including:

* **Policy Support:** The government’s recent decision to remove the Minimum Export Price (MEP) on basmati rice is expected to boost exports by allowing players to cater to overseas markets in lower price segments.
* **Rising Demand:** Demand for basmati rice is strong both domestically and internationally, driven by factors like the hotel, restaurant, and cafe segment, lower prices, and steady household income growth.
* **Increased Processing Capacity:** Companies are expected to increase processing and packaging capacities by 10% to meet the growing demand.

Nitin Kansal, Director at Crisil Ratings, stated that exports, which account for 72% of basmati rice sales, are likely to grow 3-4% this fiscal year as countries seek to secure their food supplies amidst geopolitical uncertainties.

Smriti Singh, Team Leader at Crisil Ratings, added that the industry is expected to see a 10% volume growth (9 million tonnes) this year, offsetting a projected 5% fall in realization and resulting in a net revenue increase.

The report also highlights that higher paddy output, lower procurement prices, and steady demand will encourage players to replenish their stocks, which had dropped to their lowest levels in five years. This restocking is expected to bring inventory levels back to the normative 140-150 days by the end of this fiscal year.

The robust growth in the Indian basmati industry points to a bright future for this key agricultural sector, fueled by a combination of government support, rising demand, and increased industry capacity.

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