Basmati rice, which comes from the Hindi word basmati, meaning fragrant, is distinguished by its unique, almost floral aroma and taste. It has become one of the most popular types of rice in many countries around the world due to its quality and reputation as being one of the finest varieties of aromatic rice available. However, it wasn’t always this way – in fact, basmati rice was only introduced to India from Iran via Pakistan some 3,000 years ago!
Basmati rice exports from India reached 4.62 million tons in 2020-21, valued at $4 billion. It is expected that the rice exports from India will continue to dominate the world market this year as well, according to trade and industry experts. In total, Indian rice exports fetched around Rs 65,297 crore in 2020-21, which is quite an impressive amount.
The top ten countries in terms of volume of Basmati rice exports from India in 2020-21 are Saudi Arabia, Iran, Iraq, Yemen, United Arab Emirates, United States of America, Kuwait, United Kingdom, Qatar, and Oman. Together, these ten countries are responsible for around 80 percent of the total shipments of basmati rice from India. In 2020-21, India exported around 4.63 million tons of Basmati rice valued at Rs. 29,849 crore.
Egypt is a prominent rice market in the North African region with the country’s rice supply being tabulated at 60.9 kg paddy/capita/year. The demand is higher than production which makes the region dependent on rice imports. The government in the country imports rice from China, India, Thailand, and Russia.
Basmati Rice is a major Kharif crop that grows on every continent except Antarctica. For hundreds of years, it is the most common staple food for millions of people. More than 3.5 billion of the world population receives 20% of daily food calories from rice only.
Rice is an important ingredient of the global diet. It is a rich source of carbohydrates. As such, people around the globe consume it for its rich calorific value. With the rise of globalization and liberalization, even countries deficient in rice production started exporting rice from the surplus production countries.
Basmati rice is one of the most sought-after commodities to be exported from India. Its variety, flavor, deliciousness and nourishment make it an ideal item for a staple diet to the end consumers. Because of its great demand in foreign markets, buyers (bulk and retail) are always willing to invest from a long-term perspective. However, lack of awareness, technology and market knowledge makes the buyer susceptible to dubious and fraudulent transactions.
After the freight rates have gone up by 50% the Indian basmati rice exporters are facing massive issues with trade. To curb these issues and to continue export the rice exporters are renegotiating prices with the importers in Australia, Canada and The US.
