Indian Basmati Rice – Making Space in New Markets!

Indian Basmati Rice

According to trade experts, the export of Indian rice is most likely to continue growing and would top last year’s figure, fuelled by competitive price advantages. India, the world’s largest exporter of rice, has been reaping some very interesting figures. During the pandemic, India exported 4.6 MT of Basmati rice, which accrued to 65,297 crores against 45,426 crores in 2019-20. The export business in this rice variety is looking promising.

Export of Basmati Rice from India in 2021 – Top Ten Countries

  • Saudi Arab
  • Iran
  • Iraq
  • Yemen Republic
  • United Arab Emirates
  • USA
  • Kuwait
  • UK
  • Qatar
  • Oman

India is a leading exporter of Basmati rice in bulk to the world markets. The states in India where it is grown are J&K, Himachal Pradesh, Haryana, Uttarakhand, Western Uttar Pradesh, and Delhi. The major importers of Indian Basmati rice are Saudi Arabia, Iran, UAE, Iraq, Kuwait, the U.K, the USA, Yemen Republic, Oman, and Canada.

Global Basmati Rice Market

There is a growing demand for Basmati rice, grown predominantly in the Indian subcontinent. Due to the superior quality, taste, and aroma of the product. The Middle East is one part of the world where this rice variant is used to cook many exotic dishes. Moreover, rice in general is the staple food of many cultures from across the globe, which adds to the demand and corresponding industry growth. The demand for this rice variant from the US and Europe is also propelling the market for Basmati rice forward.

Other catalysts for the growth in the Basmati rice market include a rise in population, an increase in disposable income of citizens in many rice importing countries, and an increase in awareness about the health benefits of this kind of rice. Consumers today are opting for Basmati as it is low in fat content and high in nutritional value. This kind of rice comes with a lower glycemic index and a comprehensive amount of fiber that can help reduce the risk of developing Type 2 diabetes.

Domestic Rice Scenario India

India is number one when it comes to rice areas and stands second to China in terms of rice production. 21.5 percent of the global production of this cereal grain is contributed by India.

In 2020-21, India recorded the highest export volume in terms of rice globally with a figure of 15.5 million tons. The country is also a leading exporter of Basmati rice; it had exported 4.4 million tons in 2018-19.

As much of one-quarter of the total cropped area in the country is devoted to the growth of rice; the grain also contributes 40 to 43 percent of the total food grain production in the nation.  Since the green revolution, the country has achieved marked improvements in cropping intensity and area under cultivation achieved self-sufficiency in rice production/consumption by the early 1980s. And transformed into a potential exporter of quality rice such as Basmati rice by the early 1990s.

The new opportunities in trade in Basmati rice are expected to be further strengthened by well-thought-out strategies and pragmatic government policies.

The future prospects of the export of Basmati rice and organic Basmati rice from India look quite promising. The Agricultural and Processed Food Products Export Development Authority (APEDA) is going all out to maintain. Augment attached to Indian Basmati rice, all through the supply chain from the level of the retailers to that of global buyers. Therefore, the domain is open to value addition as well as product diversification.

Awareness Programs to Sensitize Farmers

APEDA and BEDF(Basmati Export Development Foundation) has organized an Awareness Program for cultivators of Basmati rice on July 2021 to motivate farmers to grow high-quality variants.

Development of New Varieties

Indian Agricultural Research Institute (IARI), Pusa, Delhi, and Basmati Export Development Foundation (BEDF) are engaged in research activities to develop crops with higher productivity and greater resistance to lodging. The Agricultural Universities in several states are also contributing to add to the 34 approved varieties of Basmati rice being grown in the country at present.

Promotional Campaigns

Export is being strengthened through APEDA organized campaigns in major markets with a focus on retail packs and product diversification of branded rice.

New Markets in Indian Basmati Rice

In 2018, trade with Iran was halted due to the US imposed sanctions. However, new markets in Saudi Arabia and the Far East more than made up for the loss in trade with Iran.

In 2020, there are several sectors that were adversely impacted due to the forced lockdown triggered by the pandemic. However, the Basmati rice industry was an exception to the trend. The sector witnessed an increase in both the domestic as well as and overseas market during the last two years.

Absolute rights to sell Basmati in European Union all set to be acquired by India 

Geographical Indication (GI) tag for Basmati rice in the European Union (EU) is most likely to be bagged by India with the case for settling GI tag with Pakistan having expired on September 10, 2021.  This would translate into exclusive rights by India to market this fragrant variant of rice in the EU while stopping other nations from doing so.

Increase in Demand from the Middle East and Africa

India is exporting rice to Saudi Arabia, Iran, and United Arab Emirates. Algeria, Somalia, and Kenya are the major importers of this fragrant Indian rice in Africa. Policy support from Iran in terms of removal of restrictions on import Basmati rice from India has helped in enhancing the export volume in the Middle East market.

India – A game changer in rice export

The export figures for rice in 2021 are very encouraging. The country today enjoys 45 percent of the market share in the export of rice globally. Bangladesh and China are two new importers of Indian rice; the demand for Basmati rice is also growing with each passing quarter and opening up of economies. India stands to be a game changer in the global rice market if it manages to improve logistics and infrastructure conditions well in time.

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Article
role of education

What are education and its role in our life?

Next Article
Healthcare Industry

How Big Data Development is Transforming Healthcare Industry