India’s basmati rice exports are anticipated to decline in 2024 after nearing a record high in the previous year. The competitive pricing of rival Pakistan, coupled with a rebound in production, is expected to impact India’s basmati rice exports.
Both India and Pakistan are key exporters of the premium long-grain variety of rice, particularly to countries like Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates, and the United States.
In 2023, India’s basmati rice exports saw a notable increase of 11.5% from the previous year, reaching 4.9 million metric tons, just shy of the record high of 5 million tons in 2020. This surge contributed to India’s achievement as the world’s largest rice exporter, generating a record $5.4 billion in revenue in 2023, up nearly 21% from the previous year.
However, industry officials anticipate a decline in exports in 2024 due to competitive pricing offered by Pakistan, which has experienced an increase in production. The depreciation of the Pakistani rupee has further enhanced the competitiveness of Pakistani exports.
While India imposed a minimum export price (MEP) on basmati rice shipments in 2023, contributing to a temporary slowdown in exports, the market quickly recovered. Yet, challenges such as increased freight costs, particularly disruptions in shipping via the Red Sea, are expected to impact basmati prices in India. Buyers are reportedly delaying purchases, holding ample inventory, and the export market may experience further declines in the near term.
Despite these challenges, the global demand for basmati rice remains substantial, and market dynamics are expected to evolve based on factors such as production, pricing, and geopolitical considerations.
