India is the leading rice producer around the world. It exports fine-quality basmati rice at a high rate in the global market which is famous for its aroma and quality. Top-quality Basmati rice is generally exported to the Middle Eastern countries.
Basmati rice always remains in high demand but due to the erratic monsoon the yield is affected this year. Besides that, the Russia-Ukraine war also had a significant impact on the export of India’s basmati rice. Saudi Arabia, Iran and UAE are the major importers of Indian Basmati rice. These countries have imported around 50% of India’s basmati rice due to which the export prices are also increasing.
During the current financial year, in April-December the export of Indian basmati rice escalated from 2.74 million tonnes a year ago to 3.2 million tonnes. As per the record, in the current financial year, amid the initial three quarters, the export of India’s basmati rice has surged 17% in volume. In addition, the rice exporters are gaining an extra 20% on average from top importers Iran, the UAE and Saudi Arabia as these nations have purchased half of the total freight of the aromatic basmati rice.
Export Price Of Indian Basmati Rice In The Current Fiscal Year
According to the most recent data from the Agricultural and Processed Food Products Export Development Authority (APEDA), basmati rice exports rose to 3.2 million tonnes (mt) from 2.74 mt in the previous fiscal period. Though, in terms of value, the increase was 40% from $2.38 billion to $3.34 billion. Because of the falling rupee, the rise in Indian currency is significantly larger – 50.5 percent – at 26,591 crore vs 17,664 crore. In fact, basmati rice sales revenue jumped to $1,044 per tonne this current financial year from $868 per tonne the previous year.
As per statement of an official, the selling price of basmati rice did not increase from average i.e. $1057 in the month of April to September. The rice traders have paid high rates of Indian basmati rice in the current economical year. However, this financial year has been considered a win-win for all the Rice Exporters, traders, farmers as well as stakeholders.
Previous Data Of Basmati Rice Export
Recalling the 2013-14 price escalation in basmati rice, an industry executive predicted that exports would not climb as much in the following two months since agreements are being signed at an average of $1,100 to 1,200/tonne, even though some exporters are obtaining premiums and exporting for $1,350 for limited amounts.
In 2013-14, India exported 3.76 million tonnes of basmati for $4.87 billion, a record high in terms of value, at an average price of $1,295 per tonne. “That was a remarkable year since Iran purchased about 1.5 million tonnes of basmati from India, while the regular top importer Saudi Arabia acquired approximately 0.8 million tonnes,” said an industry veteran who has been monitoring basmati rice pricing for the past two decades.
As per the Global trade policy specialist and author of the book ‘Basmati GI’, S Chandrasekaran, “The difficulties in Pakistan is redefining the basmati market in addition to India’s demand and supply. “We are in the twilight zone.”
Prices often fall as supplies grow, but in the scenario of Basmati Rice Export, paddy prices increased by 19% in October to 3,322/quintal in Haryana and later reached 4,000/quintal.
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