Aromatic basmati rice exports from India may take a hit of up to 10 per cent to 1.8 million tonnes in the 2010-11 on increased competition from Pakistan's produce in Europe, according to a trade body.
''Total basmati rice export in both volume and value terms are expected to fall by 10 per cent from a year earlier.
Exports volume may fall to 1.8 million tonnes,'' All-India Rice Exporters Association president Vijay Setia told reporters.
Attributing the slump in exports to growing competition from neighbouring Pakistan in Europe, due to pesticide concerns, Setia said ''Indian farmers are spraying pesticide even after the flowering stage of the crop. And the EU is objecting to this'' .
Also, Indian exporters are reluctant to export basmati to Iran, one of their biggest markets due to delays in receipt of payments for shipments, on account of sanctions imposed by the US and UN against the middle east nation over its nuclear programme, said Setia.
''Iranian payment is coming very slowly as it is being routed through Dubai. As a result, it is affecting our market and realisation,'' he said.