India’s Basmati Rice Prices Surge Due to Strong Export Demand
Published on: December 4, 2023.
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New Season Basmati Rice Prices in India Surge Due to Robust Demand
India is experiencing a surge in new season basmati rice 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 10% to 15% more than last year, making it more expensive for them to purchase the rice.
The decision to reduce the floor price for basmati rice exports from $1,200 to $950 per ton has resulted in a flurry of export contracts, boosting demand and causing prices to rise in wholesale markets across India. This move has also led to India signing contracts to export approximately 500,000 metric tons of new season basmati rice.
Prices for one of the top basmati rice varieties have risen to around 50,000 rupees ($599.93) per ton, up from 45,000 rupees per ton last year. Other varieties have seen similar increases, with prices reaching 46,000 rupees per ton compared to last year’s 40,000 rupees.
“Rice millers and exporters are coming to wholesale markets to purchase basmati rice from us to fulfill their export obligations, and it appears that demand will remain strong,” said Sukrampal Beniwal, a basmati rice grower from Haryana.
A recent survey conducted by Local Circles, a consultancy based in New Delhi, found that households, particularly in urban areas, are now spending 20% to 40% more on basmati rice consumption. India exports over 4 million tons of basmati rice annually to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates, the United States, and various European nations.
In an effort to stabilize domestic prices, India implemented a ban on non-basmati white rice exports in July. This was followed by the establishment of a floor price for basmati rice exports.
Source: Nasdaq
