09 April 2025, New Delhi: Basmati rice prices have surged by up to 10% over the past two weeks, halting a six-month decline. This increase comes as a result of rising tensions between India and Pakistan, prompting buyers from West Asia to increase their purchases from India. The wholesale price of popular everyday boiled basmati rice (1509 variety) has risen from ₹53 to ₹59 per kilogram over the past fortnight. The price of steamed basmati rice, used for biryani, has increased from ₹62-63 to ₹69 per kilogram. In the retail market, the price of the Sela variety has reached ₹75 per kilogram, while premium biryani varieties are now priced at ₹80 per kilogram.

The decline in basmati rice prices began in September last year, when India imposed a minimum export price to ensure local supply. This led global buyers to turn to Pakistan for their rice needs. Later, the Indian government lifted this restriction, but by then, buyers had already placed orders with Pakistan, resulting in an oversupply of basmati rice in the domestic market and a subsequent drop in prices. However, with potential supply disruptions now looming, buyers are once again turning to India.

Gautam Miglani, Director of LRNK, a basmati rice exporter from Haryana, stated, “In the past 15 days, prices have increased by 8-10%. There is a fear in the global rice market that the India-Pakistan tension may affect basmati rice supply, which will increase costs.” He further added that this has motivated Middle Eastern buyers to increase imports from India.

However, Satish Goel, President of the All India Rice Exporters Association (AIREA), dismissed the notion that the ongoing India-Pakistan tensions were directly influencing the price surge. He emphasized that the recent increase in prices is primarily driven by higher demand, rather than geopolitical factors. Goel stated, “There is no impact on the basket trade due to the India-Pakistan situation. The price rise is simply a result of increased demand for the commodity.”

Published Date: May 9, 2025