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HomePosts Tagged "KRBL Limited"
Agribusiness, AgroPolicy, India, Industry Reports / Analysis, Trade

India’s agricultural exports touched $48.9 billion in 2023-24, registering an 8 per cent decline from $53.2 billion in 2022-23. The drop in agricultural exports was mainly due to the export ban on wheat, rice, sugar and onions. Meanwhile, out of 24 principal commodities of the Agricultural and Processed Food Products Export Development Authority (APEDA) 17 have recorded positive growth during the period, which included fresh fruit, buffalo meat, processed vegetables, basmati rice and banana. APEDA contributes a significant 51 per cent of agri-exports. From its modest beginnings with annual exports of $0.6 billion in 1987-88, proactive interventions by the APEDA have taken agricultural exports to a remarkable figure of $26.7 billion in 2022-23. This journey of exponential growth is underscored by expanding the export basket to over 200 countries, showcasing a commendable Compound Annual Growth Rate (CAGR) of 12 per cent. To further increase India’s share in agri export in the global market, the government has identified 20 farm products whose global imports are over $405 billion for a focussed push in the coming years. The strategy entails an action plan for the next five years to capture 10 per cent of the world trade in the 20 shortlisted products. India can achieve this provided the government addresses the issues of the agriculture industry. 

On September 14, 2024, in a significant step to boost the export of basmati rice, a premier GI variety of rice of India, the Government of India decided to remove the floor price on the export of basmati rice. This decision was taken in response to ongoing trade concerns and adequate domestic availability of rice. The APEDA will closely monitor export contracts to prevent any non-realistic pricing of basmati rice and ensure transparency in export practices.

It may be noted that, in August 2023, a floor price of $1,200 per metric tonne (MT) was introduced as a temporary measure in response to rising domestic rice prices in the wake of tight domestic supply situation of rice and to curb any possible misclassification of non-basmati rice as basmati rice during exports, given the export prohibition on non-basmati white rice. Following representations from trade bodies and stakeholders, the government then rationalised the floor price to $950 per MT in October 2023.

Besides, to boost exports of onions, the government has decided to remove the Minimum Export Price (MEP) on onions and reduce the export duty from 40 to 20 per cent. This will increase onion exports, resulting in a rise in income for onion-producing farmers. The government has also decided to remove the MEP on basmati rice, enabling basmati rice-producing farmers to export and earn higher profits. Sharing this on ‘X’ (formerly Twitter) on September 14,  the Union Home Minister and Minister of Cooperation, Amit Shah, said that this will boost exports to ensure that farmers receive a fair price for their crops, allowing them to earn maximum value for their produce.

Hailing the government’s decision, Akshay Gupta, Head – Bulk Exports, KRBL Limited said, “We greatly welcome the government’s resolution to remove the MEP on basmati rice. The timing of this strategic move coincided favourably with the imminent harvest of the new crop. With the removal of MEP, Indian exporters now have the power to offer basmati rice at far more competitive rates on a global scale, seemingly primed to drive a huge surge in export volumes.”

He further said “With new crop sales and export orders set to be finalised, this decision provides greater clarity for importers worldwide regarding India’s policy direction. Moreover, this change is expected to benefit farmers by boosting income and price realisations, as increased demand in the short term is likely due to the competitive pricing from Indian exporters.”

Reacting to this announcement, Pankaj Khandelwal, President – Output business, AgroStar Group, said that the recent policy adjustments, such as removing the MEP on basmati rice and onions, will make Indian produce a lot more competitive in the global market and enable better price realisation for the farmer.

Khandelwal however maintained that India’s role as a major global food supplier continues to gain recognition, with its agricultural products being well-received in international markets. Consistent trade policies will enable global buyers to plan their supply chains more predictably, making India an attractive destination for sourcing fresh produce. For farmers, this consistency allows for better planning, as they can shift their focus toward growing export-quality crops, confident that there will be a reliable demand and fair pricing in global markets. In the medium term, it also encourages greater investment in supply chain capabilities across the value chain.

To read more click on : https://agrospectrumindia.com/e-magazine

India’s agricultural exports touched $48.9 billion in

Agribusiness, Company News, Finance, Foodgrains, India, Trade

The E-commerce ecosystem has delivered a staggering 75 per cent revenue growth (vs. STLY) * for KRBL, solidifying its position as a pivotal strategic channel for the company’s business expansion.

KRBL Limited, renowned for its flagship range- India Gate Basmati Rice, the World’s No. 1 Basmati Rice brand, has reported robust growth in the domestic market for Q1 FY25, with revenue of Rs 925 crore, marking a 9 per cent year-on-year increase. This growth is underpinned by a significant rise in both volume and realisation for branded Basmati rice, as well as a 23 per cent surge in sales of non-Basmati branded rice.

KRBL has achieved a record-breaking market share of 37.1 per cent (+460 bps*, STLY) in general trade, 44.9 per cent (+280 bps*, STLY) in modern trade, and 42.0 per cent (+350 bps*, STLY) in e-commerce, significantly strengthening its leadership across all market categories in Q1 FY25. The E-commerce ecosystem has delivered a staggering 75 per cent revenue growth (vs. STLY) * for KRBL, solidifying its position as a pivotal strategic channel for the company’s business expansion.

The company’s unwavering efforts to enhance product availability and densify its distribution network are credited with this achievement. Currently, the brand is present in over 1.1 crore households nationwide, with a 10 per cent penetration (8 per cent increase* over STLY) and a retail outlet presence of 3.8 lac outlets.

The company has also received a positive response to its regional rice offerings and the India Gate Classic Biryani Masala. The regional rice segment, featuring aged varieties such as Surti Kolam, Jeera Rice, Sona Masoorie, Wada Kolam, and Gobindo Bhog, has grown by 23 per cent, reflecting strong consumer demand. Similarly, the India Gate Classic Biryani Masala has gained traction across E-commerce and Modern Trade platforms, further enhancing KRBL’s presence in the domestic market.

Ayush Gupta, Domestic Business Head, KRBL, commented on the performance, saying, “Our recipe for success is built on three essential pillars: Consumer, Category, and Channel. We place the consumer at the core of everything we do, constantly evolving with their preferences and translating these insights into impactful initiatives. Our passion goes beyond selling rice; we’re committed to elevating the entire basmati category. By expanding the market, educating both consumers and retailers and preserving Basmati’s heritage, we ensure an uncompromised experience. Additionally, a robust omnichannel presence has been crucial in connecting with the right customers at the right time, driving our growth strategy forward”

As KRBL continues to build on its market leadership, the company remains dedicated to expanding its reach and strengthening its product offerings in the domestic market, ensuring sustained growth and value for its stakeholders.

The E-commerce ecosystem has delivered a staggering

Agribusiness, Company News, Foodgrains, India, Supply Chain, Trade

Strategic move of the company to meet the growing global demand of the Basmati rice.

KRBL Limited, renowned for its flagship range- India Gate Basmati Rice, the World’s No. 1 Basmati Rice brand*, is thrilled to reveal its product range at Tesco, the largest and most well-known supermarket chain in the UK. This ensures that India Gate Foods’ premium Basmati range is easily accessible for delivery to customers across the United Kingdom.

As a leader in the basmati rice industry, India Gate Foods has consistently established the benchmarks for rice quality and innovation. The availability of KRBL’s products at Tesco emphasizes KRBL’s dedication to offering consumers unmatched access to high-quality basmati rice and other products. Amidst the growing demand of high-quality Basmati in global markets, this strategic move marks a significant milestone as it broadens KRBL’s global reach. Shifting from a B2B to a B2C relationship through availability of products at Tesco allows the brand to engage directly with customers who have expressed their preference for “premium, aged, long grain basmati.”

” Introducing our India Gate Basmati Rice range at Tesco not only bolsters our global market presence but also highlights our dedication to delivering high-quality and exclusive products. We are devoted to expanding our export network into new regions, including Europe and North America, through strategic collaborations and enhanced product offerings. Our goal is to make the India Gate Basmati rice and KRBL product range accessible to a broader audience, allowing them to enjoy the rich heritage and superior flavour of our products, and to use the finest quality rice for creating various delicacies.” said Akshay Gupta, Business Head for Bulk Exports, KRBL.

KRBL worked in partnership with Golden Acre Foods to secure the launch.  Based in the UK, Bcorp certified company, Golden Acre Foods are experts in bringing global brands to UK supermarkets.  They are Tesco’s strategic partner in World Foods and are renowned for their full-service approach, providing end to end support and guidance for brands wanting to enter the UK market.   The launch of India Gate Basmati Rice in Tesco will provide a great platform for future growth.

“Tesco’s tremendous community of 2,904 retail stores throughout the UK will provide us with great enterprise opportunities, and we are expecting a tremendous raise in our sales in the European region. Launching our products at Tesco isn’t about expanding our footprint but also about establishing KRBL as a trusted household name in the global market.” Gupta added.

KRBL is optimistic about achieving positive growth driven by continued expansion in the domestic market and increased exports.

Strategic move of the company to meet