Rice is a staple food consumed by more than half the world’s population. It provides 20% of the world’s dietary energy supply and is grown on more land area than any other commercial food. Rice is a key crop in hunger-proofing economies and in sustaining rural livelihoods.
The rice variety that has a unique aroma and flavor is known as basmati rice. Basmati Rice is a variety of long, slender-grained aromatic rice that is traditionally from India and Pakistan. This type of rice is available in both white and brown colors. Among the two types, white basmati rice gains more popularity than brown basmati rice as it goes well with all kinds of dishes.
Basmati Rice Market in India
The Indian organic basmati rice market is projected to witness significant growth over the forecast period.
The basmati rice market in India is currently growing at a CAGR of 7.3% during the forecast period (2019-2025). The demand for the product is anticipated to grow due to its rising consumption among consumers owing to its nutritional benefits, taste & aroma, and health benefits. Moreover, the growing population and increase in disposable income have fueled the demand for basmati rice in India.
According to 6Wresearch, India Basmati Rice Market size is anticipated to register growth during 2019-25. The country has witnessed significant growth in the production of basmati rice over the past few years owing to favorable climatic conditions and government support. In addition, the introduction of different varieties of basmati rice by various manufacturers across India to cater to the increasing demand for premium quality basmati rice among consumers has led to an increase in per capita consumption of basmati rice in the country.
According to a recent publication by “FICCI”, with a population base of 1.2 billion people as per 2014 estimates, India is one of the fastest-growing economies in terms of food processing, which makes it a vital destination for global
Total basmati rice consumption in India
Rice is the most consumed food in India. In fact, rice is a staple food of southern and eastern parts of the country and forms an integral part of any meal
Almost 50% of the total consumption takes place in southern India. Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, and Kerala are some of the largest consumers. Northern India consumes about 35% of the total consumption. Eastern India consumes about 10% and western India consumes about 5%
In 2016-17, the estimated demand for rice was 102 million tonnes. The production of rice in 2016-17 was 95 million tonnes. The import was 2 million tonnes and export of rice was around 4 million tonnes
India’s rice consumption is estimated to have reached over 1.32 lakh tonnes in 2018-19, the highest in five years, as per a report.
The demand for rice has been rising for the last two years and it is expected to continue during the current fiscal as well, the report by rating agency ICRA said.
“India’s rice consumption is estimated to have reached over 1.32 lakh tonnes in 2018-19 (FY2019), the highest in five years reflecting a steady rise in domestic demand,” it said.
ICRA has forecasted an increase of about 5-6% for FY2020 supported by higher population growth and higher income levels that would support growth in per capita consumption.
“In addition, a favorable price differential between rice and wheat may also lead to some shift in preference from wheat to rice,” it said.
The production of paddy is estimated at a record high of around 110 million tonnes (MT) in FY2019 leading to an increase in overall production
Basmati rice exports from India
India’s basmati rice exports in November 2019 were up by 12.03% to 122,200 tonnes compared to the same month last year, according to data from industry association APEDA.
The value of shipments in November also increased by 23.7% to INR6.68 billion (US$92.96 million).
During the first eight months of the Indian fiscal year, 2019/2020 – April-November – the country shipped 1,640,000 tonnes of basmati rice, up 1.37% on the same period last year. The value of this was INR103 billion ($1.4 billion), up 2.45% from last year.
India is a major producer and exporter of basmati rice which is a long grain aromatic variety grown primarily in the north of the country and exported for its flavor and fragrance characteristics.