According to a recent study conducted by the research firm SSKI, Indian rices growth opportunity lies in branding. Moving from loose and unbranded to branded products would offer the largest growth opportunity. There are export possibilities beyond basmati. The industry would be able to export varieties such as Ponni and Surti Kolam.
Rice is among Indias largest industries with an estimated size of $ 25 billion. India is the second largest rice producer (after China) with an output of 89 million tonnes, of which basmati is less than two per cent, and the largest exporter of basmati.
"In the export markets, players such as Amira Foods and LT Overseas are moving from private labels to own brands, which will be margin- accretive, the report said. Domestic consumption is also expected to shift significantly from non-basmati to basmati rice on account of higher incomes. "We see exports as another leg-up for the Indian basmati, lending overall price stability. India has a natural competitive edge in the exports considering that basmati grows only in two countries, India and Pakistan" said the research paper.
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| Posted : 7/28/2006 |
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