India’s premium-quality basmati rice up 22% till Feb 2024

Data from the commerce department shows that exports of basmati rice surged to 4.68 million metric tonnes (MMT) from April to February, against 4.1 MMT recorded in the corresponding period of the previous year, indicating a growth rate of 14 percent, according to a report in Business Standard.

This increase occurred despite the minimum export price and challenges at the Red Sea, the report said citing a government official

In July, the government implemented a ban on the export of non-basmati white rice as a measure to boost domestic supply and alleviate inflationary pressures.

Following this decision, a minimum export price, also known as a floor price, was introduced for basmati rice exports the following month.

This measure was taken to prevent the potential illegal export of white non-basmati rice disguised as premium basmati rice.

Non-basmati white rice constitutes approximately 25-30 percent of the total rice exports from India, with the country being the largest global exporter of rice.

Concerns were raised over the impact of the floor price imposition on the market, with fears that it might redirect demand towards basmati rice produced in Pakistan, which is India's primary competitor in international markets. However, government officials reassured that India's export volumes would remain unaffected by this measure, said the report.

The rise in export came despite Pakistan’s supply, the report said, citing another government official.

West Asia, the Gulf Cooperation Council (GCC), Europe, North and America are India’s top markets for rice.

The Red Sea crisis has affected India’s exports to Europe, according to the report.

Over three-fourths of India's basmati rice exports are directed to the entirety of the West Asian region.

Data shared by the commerce department indicates that the number of export destinations for basmati rice expanded to 149 in the period from April to December, compared to 140 during the corresponding period of the previous year.