Indian Basmati rice exports have witnessed a rebound in the current fiscal with Q1FY 2018 registering a 32% growth in exports contributed by 25% increase in realisations and 7% increase in volumes. This comes after a three-year consecutive decline in basmati exports till FY2017 (Rs. 21,605 crores). In the past, despite the volumes holding firm, the exports have been adversely impacted by pressure on realisations (from a peak of Rs. 77,988/MT in FY2014 to Rs. 54,011/MT in FY2017), driven by lower demand in the global market as well as lower paddy prices over the procurement seasons of FY2015 and FY2016. Basmati rice exports in the current fiscal have been encouraging, especially driven by demand from Iran. The Middle Eastern countries are the biggest importers; and also a source of volatility in demand. Demand from Iran, the second largest importer has been fairly volatile, primarily on account of import bans imposed from time to time. In Q1FY2018, Iran has been the primary contributor to growth in industry exports – contributing around 40% to the total.