amira foods basmati finally gets its due

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Amira Foods Basmati Finally Gets Its Due The kingdom of Saudi Arabia Buyers form joint purchase strategy, but high prices are here to stay. In a surprising move which is welcomed by the Indian industry, the organized player in Saudi Arabia have together made a collective decision to purchase Indian Basmati rice from regular supplier for this new crop. The increase in prices of paddy due to reduces acreage has been well accepted and the average prices for Parboiled are higher by over USD 200 PMT over last crop year. Indian private label suppliers are now also in a stage of consolidation, some of the larger players are expanding capacities in vertical integration. Beginning of organized times seems to be the flavor of the season as the Indian Economy continues its robust growth. Further it is estimates, that with the rising energy costs and land now termed as “Land Bank”, the return the farmers is expecting is a lot higher. This is our opinion could lead to a significant increase in soft Commodity prices over the next decade. Basmati which is the heritage of the Indian sub Continent would witness a robust demand led by organization of the Indian Retail Industry followed by the implementation of the definition of basmati rice in domestic traffic area. An in the United Kingdom the increase in the percentage sales is contributed by Microwave rice, the same would eventually see trends in metros of India post the Retail Organisation. The Indian Government committed to support the farmers would increase thew price in the season of 2007 which would have its effect on basmati as well. Section of the Industry Expecting a drastic reduction in prices over this year have a chance of being disappointed. In our view it is in the interest of all in the value chain to have a

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Page 1: Amira foods basmati finally gets its due

Amira Foods Basmati Finally Gets Its Due

The kingdom of Saudi Arabia Buyers form joint purchase strategy, but high prices are here to stay.

In a surprising move which is welcomed by the Indian industry, the organized player in Saudi Arabia have together made a collective decision to purchase Indian Basmati rice from regular supplier for this new crop.

The increase in prices of paddy due to reduces acreage has been well accepted and the average prices for Parboiled are higher by over USD 200 PMT over last crop year.

Indian private label suppliers are now also in a stage of consolidation, some of the larger players are expanding capacities in vertical integration.

Beginning of organized times seems to be the flavor of the season as the Indian Economy continues its robust growth.

Further it is estimates, that with the rising energy costs and land now termed as “Land Bank”, the return the farmers is expecting is a lot higher. This is our opinion could lead to a significant increase in soft Commodity prices over the next decade.

Basmati which is the heritage of the Indian sub Continent would witness a robust demand led by organization of the Indian Retail Industry followed by the implementation of the definition of basmati rice in domestic traffic area.

An in the United Kingdom the increase in the percentage sales is contributed by Microwave rice, the same would eventually see trends in metros of India post the Retail Organisation. The Indian Government committed to support the farmers would increase thew price in the season of 2007 which would have its effect on basmati as well.

Section of the Industry Expecting a drastic reduction in prices over this year have a chance of being disappointed. In our view it is in the interest of all in the value chain to have a clear distinction in the price, that too a large one between Basmati and long grain