Boost in Basmati Rice Business due to Overseas Orders and Busy Wedding Season
Published on: December 31, 2023.
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India’s basmati growers and shippers are experiencing a profitable period thanks to booming overseas orders and a busy wedding season at home. This has resulted in record-high prices and positive prospects for the upcoming year. The demand for basmati rice, known for its aroma and long grain, is on the rise among traditional global buyers in the Middle East, the US, and the European Union, leading to a global rice price surge.
Millers also note a shift in rice consumption patterns and increased demand during the wedding season as factors driving domestic demand for basmati. Wholesalers report a 15% increase in procurement demand from dealers and distributors across the country this winter.
For the new season, more than 600,000 metric tonnes have been contracted for exports, with the value of overseas shipments exceeding $3 billion by November. This high demand has driven prices up by around 30%, from ₹46,000 to ₹50,000-52,000 per tonne for some top-quality basmati grades.
The ongoing wedding season has played a significant role in boosting the industry, as families now consider basmati an essential element of celebrations. This increased export activity has been facilitated by the Indian government’s reduction of the minimum export price for basmati rice from $1,200 to $950 per tonne, making Indian basmati rice competitive in global markets once again.
Additionally, the ban on cereal exports by the world’s largest exporter of long-grain white rice has contributed to the growing demand for basmati. Distributors are offering up to ₹50,000 per tonne for premium basmati grades, making this one of the best seasons in recent years for growers.
This year, increased volumes of basmati exports could help narrow India’s agricultural trade gap, as the country has ceased shipments of white rice, wheat, and onions in an effort to stabilize domestic prices. Companies like KRBL Ltd have experienced significant growth in the domestic market, with demand for premium basmati rice grades showing a remarkable 25% year-on-year increase.
With the current thriving market and positive outlook, India’s basmati growers and shippers can look forward to prosperous times ahead.
Source: [Hindustan Times](https://www.hindustantimes.com)
