fall in India’s basmati rice exports due to surge in Pakistan’s
Published on: March 3, 2024.
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India’s basmati rice exports are expected to decrease in 2024 as Pakistan offers competitive prices due to a rebound in production. India and Pakistan are the top exporters of premium long-grain basmati rice, known for its fragrance, to countries including Iran, Iraq, Yemen, Saudi Arabia, the UAE, and the US. In 2023, India’s basmati rice exports reached 4.9 million metric tons, an increase of 11.5% from the previous year, just short of the record high of 5 million tons in 2020. This helped India earn a record $5.4 billion in 2023. However, this year, Pakistan’s increased production has allowed them to offer lower prices, attracting buyers away from India. Pakistan’s total rice exports are expected to reach 5 million tons in the 2023/24 financial year, up from 3.7 million tons the previous year. The depreciation of the Pakistani rupee has also contributed to their competitiveness in the market. At the same time, India’s basmati rice prices have started to decline due to lower export demand and a 10% increase in production. Despite a 36% decrease in purchases from Iran, higher shipments to other countries have offset the shortfall. The imposition of a minimum export price (MEP) on basmati rice in India temporarily affected exports, but they quickly recovered. However, disruptions in shipping via the Red Sea have caused increased freight costs and delayed purchases from buyers, further impacting exports. Overall, India’s basmati rice exports are expected to decline in the near term.
