According to industry experts, India’s basmati rice exports are expected to decrease in 2024 after reaching close to a record high last year.

This decline is attributed to Pakistan offering competitive prices due to a rise in production. Both India and Pakistan are major exporters of premium long-grain basmati rice to various countries including Iran, Iraq, Yemen, Saudi Arabia, UAE, and the US.

In 2023, India’s basmati rice exports increased by 11.5% compared to the previous year, reaching 4.9 million metric tons.

This surge was due to lower supplies from Pakistan and stockpiling efforts by importing nations. The increase in exports contributed to India’s record earnings of $5.4 billion in 2023, a 21% rise from the previous year.

However, this year, Pakistan’s increased production has led to lower prices, making its exports more appealing.

Additionally, India’s basmati rice production has risen by approximately 10%, further impacting prices. While Iran reduced its purchases of Indian basmati rice by 36% in 2023, higher shipments to other countries like Iraq, Oman, Qatar, and Saudi Arabia partially offset the decline.

Indian exports faced challenges in September and October due to the imposition of a minimum export price (MEP), but they recovered afterward.

However, exports experienced another setback in January due to increased freight costs caused by shipping disruptions via the Red Sea. As a result, buyers are delaying purchases, leading to a potential further decline in exports in the near future.

Published Date: February 29, 2024