India’s Basmati Rice Exports Rise Four Folds In Last 10 Years

NEW DEHI (Commoditiescontrol) – India’s basmati rice exports have increased more than four times in last ten years. According to Ashish Kathuria, General Secretary and Spokesperson, Punjab Basmati Rice Millers Association (PBRMA), India is likely to export 4.0-4.5 million tonnes of basmati rice in the financial year 2016-17 on firm demand from Iran, Iraq, Saudi Arabia, UAE and other major consumers of Indian basmati rice. In 2006-07, India had exported nearly 1.046 million tonnes of basmati rice which rose to 1.183 million tonnes in 2007-08.

“Iran is not only major buyer of Indian basmati these days, many other countries have emerged as consumers of our basmati rice for example India may export over 0.6 million tonnes of basmati rice to UAE which used to buy only 0.124 million tonnes previously,” said Kathuria.

Prices of basmati rice are expected to remain firm this year as its production is down more than 43 percent only in Punjab and other major basmati producing states have also shown reduction in production while domestic as well as exports demand has increased, he added.

Rice prices rallied this week on orders from Iran which has started issuing new permits for exports of basmati rice from India and traders are expecting more upside in prices of rice in near term due to declined production of basmati varieties nationwide and a gap between demand and supply as the exports and domestic consumptions of basmati rice remained strong in previous year and carry forward stock was nominal as on 30th September 2016 i.e. 0.381 million ton. In previous financial year total export was recorded 4.045 million tons higher to previous year of 3.73 where as The sowing of basmati rice across the key growing areas of Punjab and Haryana has seen a sharp fall of 43% and 21% in Punjab and Haryana respectively.

Production of sound head basmati rice could be recorded the lowest one in previous six years, in financial year 2011-12 a produce of 4.2-million-ton sound head rice was recorded and 3.17 million ton was realized in exports and approx 1 million in domestic. This is happening due to low cost realization to farmer and sales of basmati rice in disparity resultant heavy loss to milling industry in last three years.

Year wise Sowing of Basmati( In Million Hectares)

*The estimated figures are compiled by PBRMA with the available data of Agrinet, Ministry of agriculture of various states, feedback and opinions of Millers, APEDA, BEDF.




Due to declining of high yield 1509 variety the average yield per hectors will be 0.45 ton for crop year 2016-17 hectare




Production of sound head basmati rice could be recorded the lowest one in previous six years, in financial year 2011-12 a produce of 4.2 million ton sound head rice was recorded and 3.17 million ton was realized in exports and approx 1 million in domestic. This is happening due to low cost realization to farmer and sales of basmati rice in disparity resultant heavy loss to milling industry in last three years.



The distress sales of rice lower prices and enhanced the exports and domestic consumption year to year. The exports of rice in the month of June and July remained quite high in compare to last year but certain changes in export guidelines (No delivery against DA) by ministry of commerce a meager decline is been observed in last three months, august, September and October because exporters of India were eagerly waiting 1st date of October that the basmati rice could be dispatched against settled price, assured payment norms. Due to weak export in last two months (3lakh ton lower than its average) supply pipe line is almost empty and a huge demand from overseas are expected in the fourth quarter of financial year. in the mid of January, we can expect basmati prices to further increase as international buying will begin and production expected to be lower than the previous year said Ashish Kathuria. According to available data this year the sowing area under basmati is declined by 36% in India and high yeilding1509 is been reduced more than 85% and due to this declined crop of basmati paddy a huge impact on the turned out supply of sound head rice could be seen. Production of Sound head basmati rice will be around 3.5 million ton against the annual global consumption of 6 million ton approx, short by2.1 million ton after the submission of carry forward stocks. Definitely this will lead a major gap between demand and supply and the equilibrium of price may be remaining upward throughout the year.



Patron of PBRMA, Bal Krishan Balli said, " If Punjab Government really wish to ensure the best price to the farmers, then,it must waive off the taxes on basmati and raised issue to ban illegal labeling of BASMATI in Rajasthan and Madhya Pradesh.



(By Commoditiescontrol Bureau; +91-22-40015533)