As India forbids the export of non-basmati rice, traders ask for an early shipment of basmati rice

Since India banned the export of non-basmati rice, the cost of rice has risen by 3% on the global market. There may be a spike in the export of basmati rice after the limitation on the export of non-basmati rice. Basmati export demand has recently surprisingly increased. The reason for this is because basmati is consumed internationally, and basmati export may someday be prohibited by India. Basmati exports have never been forbidden by India. Due to an increase in export demand, basmati rice prices may go up on the domestic market.

India sold more than 4.5 million metric tonnes of basmati rice in 2022–2023. Saudi Arabia, Iran, Iraq, the United Arab Emirates, Yemen, and the USA are major consumers of Indian basmati. The Hindustan Times quotes Atul Garg, the managing director of GRM Overseas, a large exporter of basmati rice from India, as stating, “Buyers are looking for basmati rice swiftly. They fear that the Indian government would also prohibit basmati rice exports.

Purchasers frequently sign lengthy contracts, claims Garg. The rice is ordered once a month. However, this time, the importers of basmati rice are requesting that the supply that was slated to arrive in September and October instead be delivered in August.

Although these are only conjectures based on market patterns, the Indian government has not indicated that basmati rice exports would be prohibited. India has long since stopped placing any form of limitations on the export of basmati. Export taxes were only applied on basmati exports in 2008. There is no chance that India would forbid the export of basmati rice, according to a Delhi-based exporter of rice. However, the market has become somewhat panicked as a result of the prohibition on non-basmati rice.

Last year’s basmati rice growers reaped a sizable premium for their crop. The cost of a quintal of the Basmati Paddy DB 1401 and PB 1121 varieties has almost reached Rs 5,000. A quintal of Basmati 1509 now cost Rs 4,000 due to the rise in price.