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Basmati exporter diversifies into ready-to-eat curries in U.S.
Friday, 15 August 2003, 19:30 IST
NEW YORK: Satnam Overseas, one of India's largest exporters of basmati rice under the flagship Kohinoor brand, has introduced heat-and-eat curries and semi-cooked basmati in the U.S. where there is a big market for its products.
The basmati pilaf is available in three flavours -- vegetable, mushroom and tomato -- and the curries and lentils in nine varieties, said Kamal N. Sharma, marketing manager for Satnam Overseas.
The curries and lentils include Peshawari dal, Punjabi kadhi pakora, Kashmiri rajma, Pindi channa masala, Amritsari cholle, sarson ka saag, aloo palak, dal palak and aloo ki sabzi.
"Each of these preparations follows traditional recipes. Just heat for two-to-three minutes in a microwave or boiling water and they are ready. No artificial colours or preservatives. They are strictly vegetarian and kosher certified."
Sharma said Satnam Overseas entered the U.S. basmati rice market in March 2000, catering mainly to South Asians and people of Middle Eastern origin, by supplying to grocery stores.
"Now, we are finding that the biggest growth for our superior quality basmati rice is from the mainstream market," Sharma told IANS.
"The mainstream (market) here is growing at 16 percent. We are catering to the market through brokers," he said, adding that rice exported by his firm sells in over 15 brand names in the U.S., including Costco, Freshdirect and Wholefoods.
"Our distribution chain is expanding and we have even acquired a large warehouse in Somerset, New Jersey."
According to Sharma, the traditional markets for basmati in the U.S. have become extremely price sensitive, since several suppliers have extended deals such as "buy one, get one free".
"There are over 25 companies from India and Pakistan selling basmati here. There are over 70 brands. But we decided not to compromise on quality and let people get the taste of real basmati. We have the same quality and packaging in every market. The only difference is in the tag describing the nutritional content," he said.
"Our best quality basmati -- 'Superior Kohinoor' -- has a large market here and sells for $4 per kilogram."
Shifting to the controversy over geographical indication for basmati and the use of the phrase "basmati-type" rice by some rice cultivators in the U.S., Sharma said it had impacted the export of basmati from the subcontinent.
"For example, if basmati grown in India costs us $1 a pound, the aromatic rice grown here costs 10 cents," he said.
He explained that basmati gets its flavour from the soil found on the Himalayan foothills and the melted snow that flows through five rivers in the region.
Accordingly, India was fighting for the exclusive use of basmati name and had thus far won 16 out of 19 parameters on which objections were raised, he added.
On the company's global operations, Sharma said Satnam Overseas exports basmati to over 50 countries in seven continents, apart from selling within the country.
In the quarter ended June 30, the company registered a 21 percent increase in turnover to 
1.59 billion ($32.8 million). Exports were up by 75 percent while domestic sales were up by 49 percent.
Source: IANS
1.59 billion ($32.8 million). Exports were up by 75 percent while domestic sales were up by 49 percent.
Source: IANS