New Delhi: India’s exports of basmati rice to Egypt and European countries may be affected if the conflict in the Red Sea does not subside. The country may have to take a longer route around Africa to ship the commodity, which could increase costs by 15-20%, according to an official’s statement on Thursday.
In addition, overall exports may face a shortfall of about $4-5 billion this year due to India’s restrictions on wheat, rice, and sugar exports in response to rising prices. However, the growth in exports of other agricultural commodities will help offset the export deficit. It is expected that India’s agricultural exports in FY24 will reach the same level as last year, which was $53 billion, despite these restrictions.
“We anticipate reaching that level despite the $4.5-5 billion impact from the restrictions,” said Rajesh Agrawal, additional secretary of the Department of Commerce. Between April 1 and December 8, 2023, basmati rice exports from India have grown by 20% year-on-year.
