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 middle east region is a leading consumer of basmati rice which it imports from India and Pakistan. The region is responsible for as much as 37.8% of the total rice consumption. The major importing countries in the region are Saudi Arabia and the United Arab Emirates, which together accounted for 30 percent of Basmati rice exports from India in 2018.
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.
Intermittent rains during October 2021 have caused severe damage to paddy fields in several parts of India and production is expected to decline by up to 20 percent. As a direct impact, the price of Basmati has already increased by as much as Rs. 2000 per quintal.
Basmati Rice is one of the most demanded ingredients in the world. It is an indispensable staple diet. As India is the world’s largest producer of quality basmati and non-basmati rice, a huge amount of rice is exported to the world annually. A large portion of the rice export by India contributes to the world economy. The delicacy and aroma of Basmati rice hypnotize people, thus adding more rice-loving people to its forte. It has an average length of 7.5mm to 8.8mm with a potential to expand twice its kernel size after cooking.
Recently, a new development regarding the Indian basmati rice export has created an apprehensive environment for all basmati rice exporters in India. Iran, an exponential importer of Indian basmati, has placed an order with Pakistan for the rice. This has created distress in the Indian basmati rice exporter’s community. Indian rice exporters are constantly trying to grow globally, as the demand for Indian basmati rice is high. Looking at the recent events a solution to cater to the Indian rice exporter’s market is required.