14% Increase in India’s Basmati Rice Exports

Mintec Global
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Impressive Start to the Fiscal Year

The current financial year has commenced on a positive note for basmati rice exports, exhibiting a notable 14% increase in April. This growth builds on the solid momentum witnessed in the previous fiscal year. In value terms, basmati rice exports reached $534 million in April, up from $470 million in the same month last year. This increase is attributed to higher demand from key markets, including Saudi Arabia and Iraq.

Volume and Value Analysis

  • In volume terms, basmati rice exports surged by 17%, reaching over 0.499 million tonnes (mt), compared to 0.425 mt in the previous year.
  • Saudi Arabia emerged as the largest buyer, purchasing over 0.145 mt valued at $177.24 million.
  • Iraq followed closely with 0.137 mt valued at $141.60 million.
  • Other significant buyers included the United Arab Emirates, which imported 0.099 mt valued at $130.43 million, and the United States, purchasing 0.058 mt valued at $124 million, according to the Agricultural and Processed Food Products Export Development Authority (APEDA) data.

Record Shipments in FY 24

The fiscal year 2023-24 witnessed a remarkable performance in basmati rice exports. Shipments recorded a 15% growth in volume, reaching a record 5.24 million tonnes. In value terms, basmati rice exports grew by 22%, surpassing $5.83 billion. This exceptional growth highlights the robust demand for Indian basmati rice in the global market. In contrast, non-basmati rice shipments experienced a significant decline of 21%, amounting to $418 million due to export restrictions. Similarly, wheat shipments plummeted by 75% because of export curbs. Overall, cereal shipments were down by 8.44%, totaling $974 million, compared to $1.064 billion the previous year.

The strong performance of basmati rice exports presents a lucrative opportunity for exporters. The sustained demand from key international markets, coupled with the significant volume and value growth, emphasize the potential for further expansion. Exporters must capitalize on this momentum by focusing on maintaining high-quality standards and exploring new markets.