Rise in demand for India’s Basmati rice from the Middle East
Rice
India
Published May 25, 2022
Tridge summary
With rumours abounding that New Delhi may apply a rice export ban to deflect domestic inflation, Indian basmati rice has been getting a premium of $20-30 (Rs 1,550-Rs 2,330) per tonne from nations in the Middle East. Exporters have obtained urgent communication from patrons to ship the fragrant, long-grain rice. A firm price trend in global markets has pushed up the cost of basmati by as much as 15 per cent in the last two weeks.
Original content
The export value of basmati rice, which was $1,200 per tonne in November last year when the crops started arriving, dropped slightly to rise again to the current $1,350. And Middle eastern buyers are even offering to pay a premium over this value. Earlier in the month India had put curbs on wheat exports to regulate the food grain prices, which has been rising on account of worries over global short supplies amid the Russia-Ukraine war. However, traders say that there is no indication of India banning rice exports. “We have no idea from where these rumours of rice export ban have been spreading,” said Vinod Kaul, executive director of the All-India Rice Exporters Association. There has been no indication from the government on any such move. But buyers from the Gulf countries are placing good volumes of orders to fill up their own pipeline. India produces 8 million tonnes (MT) of basmati rice during kharif. Last year, as a consequence of unseasonal rains through the harvesting ...
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes.
To learn more about our cookies, please read our Privacy Policy.