Global Rice News

India’s Basmati Rice Exports Expected to Decline as Pakistan Offers Competitive Prices

Industry experts predict that India’s basmati rice exports will decrease in 2024 after reaching near-record levels last year. This decline can be attributed to Pakistan’s ability to offer competitive prices due to a rise in production. Both India and Pakistan are major exporters of premium long-grain basmati rice to various countries, including Iran, Iraq, Yemen, Saudi Arabia, the UAE, and the US.

In 2023, India’s basmati rice exports saw a significant increase of 11.5% compared to the previous year, reaching a total of 4.9 million metric tons. This surge was primarily a result of lower supplies from Pakistan and efforts by importing nations to stockpile the rice. The increase in exports contributed to India’s record earnings of $5.4 billion in 2023, marking a 21% rise from the previous year.

However, this year, Pakistan’s increased production has led to lower prices, making its basmati rice exports more appealing in the global market. In addition, India’s own basmati rice production has risen by approximately 10%, further impacting prices.

Although Iran reduced its purchases of Indian basmati rice by 36% in 2023, higher shipments to other countries such as Iraq, Oman, Qatar, and Saudi Arabia helped partially offset the decline.

Indian basmati rice exports faced challenges in September and October when a minimum export price (MEP) was imposed. However, they were able to recover afterward. Unfortunately, exports experienced another setback in January due to increased freight costs resulting from shipping disruptions via the Red Sea. As a result, buyers are delaying their purchases, which may lead to a potential further decline in exports in the near future.

Overall, Pakistan’s competitive prices due to increased production have impacted India’s basmati rice exports, leading to a potential decrease in export volume in 2024.

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