The Demand of Basmati Rice Market
- The business of agricultural commodities like Basmati Rice is unquestionably dominated by the import/export of rice businesses in India, which over the years and around the globe has been expanding in the last few decades.
- As India is the world’s largest producer of high-quality basmati and non-basmati rice, therefore, a large volume of rice has been exported to the world every year. A good chunk of the particular Rice Exporters in India have a great share in the world market.
- With the increasing demand for the rice globally due to its elongation and aroma, the export volumes are also increasing from India day by day. This factor is enhancing the production capacity of rice in India which will turn increasing a large share rice export market worldwide.
Major Key Players in the Indian Market
Basmati Rice Market can be divided into two segments. One is Indian Rice Market and the other one is the Pakistani Basmati Rice market. The major manufacturers of the rice in the world market are India, Pakistan, and Kenya. The major key players of the rice in the world market are:
- KRBL Limited.
- Amira Nature Foods.
- LT Foods.
- Best Foods.
- Kohinoor Rice.
In the current Financial Year, Basmati Rice Exports will be projected to grow at Rs. 75,589/MT. Indian Basmati Rice Exports are always hiked in the market. In the past two financial years, the market growth of the rice has hit record growth in the consecutive two years.
Company’s Performance Report on Export of Basmati Rice
KRBL Ltd. is the world’s largest rice exporter. The company is a branded basmati rice manufacturing company that can generate 195 MT of Basmati Rice per hour. It holds a total of 25 percent market share around the globe. In the Financial year 2018 to 2019, the total revenue of the company was Rs.4,136 Crores.
Amira Nature Foods
The food company is best known for its manufacturing and distributing network of Basmati Rice in the market. In the financial year 2018 to 2019, the revenue of the company was USD 413.9 million.
LT Foods Ltd.
The company is engaged with milling, processing, and marketing of basmati rice products worldwide. In the last Financial year, the company was generated INR 3,000 Crores.
Best Foods Ltd.
The Delhi based food company is one of the largest rice manufacturing companies in the world. The capacity for processing rice in the company is 45,000 tons of rice per month. In the financial year 2018, the company has generated revenue of USD 53 million.
Kohinoor Rice Ltd.
This is one of the best brands of rice in the world market. In the current financial year, the company expects a turnover of approximately INR 1,000 Crores. The export value of the company accounts for approx INR 250 Crores.
Current Consequences of Basmati Rice Market to Iran and Other Countries
India mainly exported Basmati Rice to Iran, Iraq, Saudi Arabia, UAE, and Yemen. Out of this, a huge volume of the rice has been exported to Iran in the last Financial Year.
Iran has remained the largest importer of Basmati Rice from India. It covers 32 percent of the total Basmati Rice Exports from India. In the current Financial year, Iran has imported Basmati Rice at Rs. 9,204 Crores (12.7 lakh tons).
According to current news, the continuation of the tension between the USA and Iran will have implications on India’s exports to the Persian Gulf nation. Iran refused the formation of any alliance against the USA and further it will affect the rice market in India.
From the current survey, it depicts that, in the absence of sufficient imports from Iran, India can face high uncertainty on recovery for export payments from Iran. This will create consequences in the export market of rice.
According to the foreign minister of Iran, India needs to take actions that meet the interests of both countries. Due to the rising tension, the exporters and farmers will have to bear the consequences of the trade relationship between the nations. This particular rice type growers and farmers are bearing the current impact of Iran sanctions which will affect the production and processing of the rice in the current harvest season. Basmati Rice millers should very careful about the Basmati Rice Price in the coming financial year.
According to the research market analysis report, the global market is expected to grow on account of the rising consumption of rice around the world. So, in the coming years, Basmati Rice consumption will show a trend of steady growth by 2023.
The report also focused on the significant growth in the consumption of particular rice especially in countries like North America, Europe, South America, the Middle East, and Asia.