India’s basmati rice exports are expected to fall in 2024 amid competition from Pakistan, which is offering the item at competitive rates.

India and Pakistan dominate the export market for premium long-grain basmati rice, catering to countries like Iran, Iraq, Yemen, Saudi Arabia, UAE, and the US.

In 2023, India’s basmati rice exports reached 4.9 million metric tonnes, showing an 11.5 percent increase from the previous year, but falling just short of the record high in 2020. This surge was fueled by lower supplies from Pakistan and stocking efforts by importing nations.

Pakistan now offers lower prices than India and resultantly its exports are expected to rise to 5 million tons in the fiscal year 2023/24, up from 3.7 million tons last year, according to the Rice Exporters Association of Pakistan.

The depreciation of the Pakistani rupee has further enhanced its competitiveness in the global market and given tough competition to Indian exporters. The demand for Indian rice exports has fallen considerably, while the country continues to produce high volumes of the item in the hopes of selling it for profit.

India’s export momentum faced temporary setbacks due to government regulations, such as imposing a $1,200 minimum export price on basmati rice shipments. Although these measures were later relaxed, challenges like increased freight costs due to disruptions in shipping via the Red Sea continue to impact exports.

Exporters anticipate a further decline in Indian basmati rice exports in the near term, with buyers adopting a cautious approach amidst ample inventory and rising freight expenses.

Published Date: March 1, 2024