Exports of basmati rice from India are expected to exceed 4 million tons for the year – an increase of 11% over last year. The increase is due in large part to the commercialization of the new Pusa Basmati 1509 variety which was developed by the India Agricultural Research Institute last year. Pusa Basmati 1509 offers a yield of 6.5 tons per hectare as opposed to the traditional Pusa 1121 variety’s yield of 4.5 tons per hectare. The increased yield will help meet increased demand from the export markets of West Asia, the UK and the U.S. Basmati rice has been the second-rank agri export for India behind guar gum, however this year basmati rice will regain its place as the top agri export for the country. Because of strong domestic and international demand for basmati rice, India’s basmati rice farmer’s incomes have increase between 30% and 50% this year. For the four years ending 2011/12, India’s basmati rice exports grew at a compounded annual growth rate (CAGR) of 22% and studies indicate a continued stable outlook.
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