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.
