Satnam Arora, MD, Kohinoor Foods believes that although Vietnam has produced record output of long grain white rice and will swab the export market with large supplies at cheaper rate than India by USD 25, India has an advantage in parboiled long rice.
In the parboiled rice India has competition only wtih Thailand, which is expensive by USD 100 than Imdia. "We will be lose little on white rice long grain market but we will get much more business in parboiled rice," said Arora.
In an interivew to CNBC-TV18, Arora said this year they have a target of 30% higher growth in exports than last year. This year they expect a turnover of Rs 1,500 crore over Rs 1,100 crore over last year.
Also read: Foodgrain output revised upward by 2% to 255.36 mn tonne
He said they will be agressively marketing their Kohinoor Basmatic rice brand and expect a 25 percent increase in branded sales worldwide in FY14.
Below is the verbatim transcript of his interview on CNBC-TV18
Q: What is the export situation looking like because three days back there was a report that Vietnam has produced record output and they will be swabbing the market with supplies at much lower prices and that will make India’s exports incompetitive – is that a right fear?
A: Actually, long grain rice is a price game. Last year, India got a market of 7 million tonne of long grain rice just because we were competitive. This year, Vietnam price is lower by almost USD 25 from that of India and that is why they are doing their long grain white rice more than India but India has got an advantage of long grain rice that is the parboiled rice. India has competition with Thailand but Thailand is expensive than India by USD 100.
So, we will be lose little on white rice long grain market, whereas we will get much more business in parboiled rice.
Overall, India will not be a loser and these small changes in prices keep coming and India has its own market. India has its own customer list that like Indian rice.
Below is the verbatim transcritp of his interview on CNBC-TV18
Q: Can you just throw some light on how your export and domestic markets are doing?
A: Our export market has grown by 25 percent last year and this year we have a target of about 30 percent higher than last year. Last year we have achieved a turnover of Rs 1,100 crore and this year our target is around Rs 1,500 crore.
Our main concentration in the international market is on Kohinoor Brand, which has got 25 percent higher than the previous year. Marketing a brand is a difficult proposition but our whole team is focusing aggressively on marketing Kohinoor basmati rice worldwide and the results are very positive.
We are hopeful that this year again we will be getting about 25 percent increase in branded sales worldwide.
Q: What about FY14 going forward? What kind of numbers are you working with because this year it has been good for you so far although Q3 was slightly muted quarter on quarter, but overall it has been a good year – could you give us any kind of guidance for FY14?
A: We see it as a very positive year because this year, the crop is expected to be much more for basmati because farmers have made good money. We expect to have more than 40 percent increase in basmati production and we already have customers for that.
We have an aggressive target of Rs 1,500 crore this year in FY14 and we will be able to achieve it because the crop size is expected to be much higher than the last year and customer demand is already there.