India’s New Season Basmati Rice Prices Surge due to Increased Export Orders
Published on: December 4, 2023.
Filed under:
New Basmati Rice Season in India Sees Surge in Prices
The new season for basmati rice in India has seen a significant increase in prices this year, driven by strong demand from top buyers in the Middle East and Europe. Bulk buyers in wholesale grain markets are now paying between 10% and 15% more than last year.
A recent decision to reduce the floor price for basmati rice exports from $1,200 per tonne to $950 per tonne has led to a surge in export contracts, boosting demand and pushing up prices in major wholesale markets across the country. This has been particularly beneficial for farmers in top grain-growing states.
According to Reuters, India has already signed contracts to export approximately 500,000 metric tonnes of new season basmati rice, indicating a robust overseas demand for this premium aromatic variety.
Market prices for one of the top basmati rice varieties have risen to around 50,000 rupees ($599.93) per tonne, up from 45,000 rupees per tonne last year. Other varieties have also experienced price increases, with rates reaching 46,000 rupees per tonne compared to 40,000 rupees per tonne last year.
“Rice millers and exporters are flocking to wholesale markets to buy basmati from us to meet their export obligations and it looks like demand is likely to be strong,” says Sukrampal Beniwal, a basmati rice grower from Haryana.
The rising prices have also impacted households, particularly in urban areas, with consumers now spending 20% to 40% more on basmati rice, as reported by Local Circles, a New Delhi-based consultancy.
India exports over 4 million tonnes of basmati rice annually, with major customers including Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates, and the United States. Europe is another important market for Indian basmati rice.
To stabilize domestic prices, India implemented a ban on non-basmati white rice exports in July, before introducing the new floor price for basmati rice exports.
For more information, please visit the source article on Business Standard.
