Punjab and Haryana, which account for around 75% of the country’s total Basmati output, saw crop damage during floods even as overseas demand is expected to rise this year. 

Vijay C Roy

Basmati exporters are looking at other states to make up for the crop lost to floods in Punjab and Haryana, the largest producers of long-grain rice in India, as millers expect higher overseas demand this year.

“The floods in Punjab and Haryana have caused some immediate logistical and crop-related challenges, besides impact on lives in the region,” said Amit Goel, founder & group managing director, KNAM Group, a basmati exporter. “Although the quantum of crop loss is difficult to ascertain at the moment, exporters have started drawing up plans to increase procurement from Haryana, Uttar Pradesh and Madhya Pradesh to meet the shortfall.”

Punjab and Haryana account for around 75% of the country’s total long-grain rice output. According to estimates by All India Rice Exporters Association (AIREA), India is expected to export 6.5 million tonnes (mt) of basmati rice in the current fiscal year, rising from 6.06 mt worth $5.94 billion shipped out in 2024-25, according to AIREA.

“Preliminary estimates suggest that the quantum of damage in Punjab is around 10-15%, which can be compensated by Haryana and Uttar Pradesh, which are reporting good yield,” said Satish Goel, president, AIREA. The final survey is likely to be completed by the first week of October.

Queries emailed to the ministry of agriculture and farmers welfare and Agricultural and Processed Food Products Export Development Authority (APEDA) regarding the crop damage and export prospects for the current fiscal year remained unanswered.

The exports, however, face a challenge from US tariffs on Indian merchandise goods, including farm products.

Exporters expect some diversion of shipments from the US to core markets like the Middle East, Europe, and Asia, according to Goel. “Besides newer markets, including African nations, Latin America, and Southeast Asia, are being explored for diversification to offset US tariff impact. These markets collectively are likely to absorb bulk of India’s basmati exports.”

In April-August 2025, basmati rice exports grew nearly 15% year-on-year to 3.1 mt by volume and 16% to $1.74 by value, reflecting strong demand despite tariff challenges, according to data from the Directorate General of Commercial Intelligence and Statistics.

Value growth was slightly higher than volume growth due to favourable pricing in major importing regions, except the US where tariffs hit prices.

Prices have risen 10-14% domestically as well due to supply concerns. “The new crop has started coming in mandis of the state. Currently, the price is hovering around ₹3,200 per quintal compared to ₹2,800-2900 per quintal last year,” said Sushil Jain, president, Haryana Rice Exporters Association.

Punjab is the leading basmati producer in the country with a total area under cultivation of around 7.6 lakh hectares this year, compared with 10.04 lakh hectares last year, according to the first survey conducted by AIREA. It is followed by Haryana (9.35 lakh hectares) and Western Uttar Pradesh (7.63 lakh hectares). The total area under basmati in Madhya Pradesh is 6.55 lakh hectares, while in Rajasthan it is 2.03 lakh hectares.

“The total area under basmati is 34.44 lakh hectares in the current year as per the first crop survey as compared to 37.28 lakh hectares last year. However, the impacted area on account of floods is yet to be assessed,” said Dharmesh Verma, remote sensing expert, Anvik Value Chain. The organization conducts satellite image-based and field surveys on behalf of AIREA.

Published Date: September 23, 2025