Kohnioor Foods is optimistic of a better exports of Basmati rice going forward. This is on the back of Russia lifting the ban on import of rice from India and export-oriented policies being made.
With the lifting of ban by Russia on the import of rice from India, Kohinoor Foods is positive on better overseas business performance going forward. Satnam Arora, joint managing director, Kohinoor Foods expects exports of 10,000 tonne of long grain rice (worth Rs 35 crore) by the end of the fiscal year.
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Below is the edited transcript of his interview to CNBC-TV18.
Q: Russia has lifted an 8-month ban on import of rice from India. Is that true? If yes, how will it benefit the industry and Kohinoor Foods in particular?
A: It is correct that Russia has lifted the ban. It is going to benefit the entire trade, especially to Kohinoor as last year we exported 8,000 tonne of a long grain rice to Russia and some basmati too. We haven’t shipped a tonne since April this year. With this good news coming, it is definitely going to benefit Kohinoor Foods.
Q: From now to the end of this fiscal year, how much could you possibly export to Russia?
A: We will be doing about 10,000 tonne of long grain rice.
Q: What will the 10,000 tonne of long grain rice mean in terms of rupees? Financially, how much will be the benefit?
A: It should be about Rs 35 crore on long grain. Basmati too, will be doing some quantities as Russia is not a very large market for Basmati rice. But it is growing in small bits too and we already have established Kohinoor Brand in Russia.
Q: India is looking to boost exports in general. So for rice, will exports be more than what you saw last year? How it will look for exports for the industry per se or any kind of swaps, which are possible so that we could increase our exports?
A: We expect very big business in basmati exports especially this year as the prices were very high last year, which led to dry markets. Everybody is looking for rice imports now. With the new crop coming; we expect a big demand.
The customers are already sending us all the inquiry. So for the total trade, this new crop is going to get great welcome and the business will boom in the months to come.