Agri Commodities Basmati Rice

Basmati Rice Imports from India to UAE: Overview

Basmati Rice

Basmati rice is one of the most popular types of rice all over the world. It is a very aromatic rice that is native to the Indian subcontinent and has become extremely popular in the Middle East, Gulf Arab countries, Europe, the USA, and Canada.

Basmati rice has a unique aroma and taste. It has a nutty flavor and is one of the most expensive types of rice available in the market today.

India is the largest producer of Basmati rice in the world. The country contributes almost 65% to 75% of total Basmati Rice produced in the world.

The UAE is amongst the largest consumers of Basmati Rice in the world. The Basmati Rice imports in UAE reached more than 3 billion dollars worth of rice last year alone. More than 40% of this import was from India only.

Basmati rice consumption in UAE

In the United Arab Emirates, basmati rice consumption is on the rise. The Basmati Rice imports in UAE started to rise more than a million tons every year, largely from India. Rice consumption in the United Arab Emirates will reach an all-time high of 542,000 metric tons in 2020/21.

The country’s population is expected to grow by 1.1 percent, which will support its food consumption. With increasing tourism and a sizable expatriate community, the demand for high-quality packaged food is expected to rise, thereby increasing imported rice purchases. Despite the COVID-19 pandemic, the UAE has managed to keep its food supply chain open and working, which has helped increase Basmati rice imports.

Basmati rice demand in UAE

Basmati rice consumption in the United Arab Emirates (UAE) is expected to reach a new high by 2021, driven by strong demand from young and affluent consumers, according to a recent report from IMARC Group.

According to the report, Basmati rice consumption in the UAE has been increasing at a CAGR of 9.7 percent during 2016-2021. The market is also anticipated to grow at a rapid pace over the next five years, reaching three million tonnes by 2021.

The increasing popularity of Basmati rice in the UAE can be attributed to its unique flavor, long grain size, and nutritional profile. It contains lower amounts of carbohydrates and calories than other varieties of rice, owing to which it is increasingly consumed by people aiming to reduce weight or maintain good health.

Increasing disposable incomes and changing dietary habits are further contributing to the market growth. Additionally, the rising demand for ready-to-cook food items is also accelerating the demand for Basmati rice. On account of these factors, the market is expected to exhibit strong growth during 2020-2021. The basmati rice price in the United Arab Emirates market is up by abt. 15% since the start of the current year, due to increased demand and limited supply.

Basmati rice export from India to UAE

India is the world’s largest exporter of basmati rice. In 2019-20, basmati rice exports from India were estimated at 5.6 million tonnes and valued at Rs 26,948 crore. The share of basmati rice in overall rice exports (including non-basmati) was 83% in terms of quantity and 96% in terms of value.

The United Arab Emirates (UAE) is one of the top markets for basmati rice exported from India. Let us look at the top destinations of basmati rice from India and their market shares.

The share of UAE, Saudi Arabia, Kuwait, and Iran was about 59% in terms of quantity and about 75% in terms of value in 2019-20. These countries are also the top four importers worldwide.

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