MUMBAI – Rice processor REI Agro Ltd is expecting its 2010-11 basmati rice output and exports to remain steady at last year’s level and for revenues to grow due to higher prices, a senior company official said.
“Because of lower production of basmati, prices this year will remain firm,” Managing Director Sundip Jhunjhunwala said. In the December quarter, the company was exporting basmati rice at around $1,400 per tonne, compared with $1,300-$1,325 per tonne during the same period last year, he said, expecting the prices to rise further. The company had produced 556,000 tonnes basmati rice in 2009-10.
India competes with neighbouring Pakistan in the world basmati rice market. In 2010-11, the crop in Pakistan was damaged due to heavy summer floods, reducing exports. The company’s net profit in December quarter more than doubled to Rs 814 million, while net sales jumped over 47 percent to Rs 9,601.9 million.
“We have exported 85,000 tonnes rice in first nine months against 104,000 tonnes in full year 2009-10. This quarter (March) we will be doing exports of 15,000-20,000 tonnes. We should match last year’s exports,” he said.
