Basmati rice exports rose 22% till February FY24 on West Asia demand
India’s basmati rice exports surged by 22% to $5.2 billion in April 2023-February 2024, driven by demand from West Asia. Despite export restrictions and challenges at the Red Sea, exports reached 4.68 MMT, up 14%. Non-basmati white rice export ban aimed to stabilize domestic prices. Minimum export price implementation aimed to curb illegal shipments. India maintains dominance despite competition from Pakistan. Major markets include West Asia, with Iran, Iraq, and Saudi Arabia leading destinations.
Exports of high-quality basmati rice from India grew by 22 per cent to $5.2 billion during April 2023-February 2024, amid robust demand, primarily from West Asia.
According to data compiled by the commerce department, exports of basmati rice increased to 4.68 million metric tonnes (MMT) in April-February, from 4.1 MMT during the same period a year ago, registering a growth of 14 per cent.
“We have seen good growth (in basmati rice exports) this year in terms of value and quantity, despite the minimum export price on basmati rice and constraints at the Red Sea,” a government official said.
In July, the government banned the export of non-basmati white rice to boost domestic supply and help control inflation.
A month later, a minimum export price, also known as a floor price, was imposed on exports of basmati rice. This was to restrict possible ‘illegal’ shipment of white non-basmati rice in the garb of premium basmati rice.
Non-basmati white rice accounts for nearly 25-30 per cent of the total rice exported from the country. India is the world’s largest exporter of rice.
While there were fears that imposition of the floor price may shift the market towards the basmati produced in Pakistan —India’s closest competitor in the global markets — government officials said that India’s exports will not be affected.
“This is also despite Pakistan’s exports of basmati rice also growing. Our exports have not suffered,” another government official said.
“Our largest markets include West Asia, Gulf Cooperation Council (GCC), Europe, North and America. The Red Sea crisis has impacted our European exports,” the second government official said.
The entire West Asia comprises more than three-fourth of India’s basmati rice exports.
India’s top-five export destinations for basmati rice are Iran, Iraq, Saudi Arabia, the US and the UAE.
According to data compiled by the commerce department, the number of export destinations for basmati rice grew to 149 in April-December from 140 during the same period a year ago.
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