Rise in the prices of rice
There is a huge demand in the international market for basmati rice as well as for non-basmati rice.
At present, the price of Basmati rice is USD 1,106 per Metric Tonne. It has risen from the previous year. It was USD 1,012 per Metric Tonne in the previous year. This increment of USD 94 has helped traders to earn more profit. Following the footprints of the international market, domestic prices have gone up to USD 0,97 – 1,45 per kg against USD 0,75 – 1,22 per kg. The prices of non-basmati rice also reached a peak of USD 374 per Metric Tonne in April this year, up from USD 356.5 per Metric Tonne last year.
Traders are hoping that the prices of basmati rice might be USD 0,36 per kg this year, which will help the farmers to gain a good harvest for the second consecutive year. Looking at the current scenario, it is predicted that the prices may rise further in the future if there will be increasing demand for Indian rice in the international market.
Farmers & Traders, both are at benefit
Farmers, especially those who had basmati rice crops and traders are expected to reap a rich harvest over the coming Kharif marketing season 2023-24, as the prices of all aromatic long grained varieties of rice beheld an increase in domestic and global markets.
Former president, Vijay Setia of AIREA (All India Rice Exporters Association) commented that it is a great sign in the interest of farmers and traders. He said, “Yes the prices of both basmati and non-basmati rice have increased following a surge in demand in the international market. Even India’s Basmati rice export has increased and there is a strong possibility that the farmers will get a good price for their produce this year.”
In India, Haryana and Punjab are the largest producers of basmati rice and contribute around 80% of the country’s total production. The advantage of rising prices will benefit the farmers of Haryana and Punjab the most.
Export data figures revealed
APEDA publicized that India has exported 0.427 Million Tonne of basmati rice in the current fiscal 2023 – 2024 against 0.319 Million Tonnes in the previous year. If we calculate in terms of money, then India’s total rice export has crossed USD 9,994 Million including USD 4,696 Million of Basmati in the current fiscal year April 2023 – 2024 against USD 7,485 Million during the same period of 2022 – 2023. Apart from basmati rice, India has exported around 1.42 Million Tonnes of non-basmati rice this year against 1.35 Million Tonnes in the past year.
Last; but not least, for rice this year has proven a golden year. Considering some support from the government, Setia has drawn attention that the government must lift the levy of taxes from the procurement of basmati paddy from the market of Haryana, this move will boost the competition and the farmers will get more benefit from it.