Basmati rice price rises due to strong demand from importing countries

21-May-2025 04:43 PM

New Delhi. The recent rise in the export offer price of Basmati rice is a result of strong demand from major importing countries.

Some critics had attributed the price increase to the ongoing tension and dispute between India and Pakistan, but the All India Rice Exporters Association (AREA) clarified that trade of Basmati rice has continued without any disruption despite regional conflicts.

AREA has stated that concerns about the impact of India-Pakistan tensions on Basmati rice exports are unfounded. The association emphasized that the recent price increase is purely driven by strong demand from importing countries.

The President of AREA confirmed that there has been no hindrance in the export shipment of Basmati rice, either in the past or currently.

The export channel for Indian rice remains fully operational. Importers from countries such as Saudi Arabia, Iran, Iraq, and Qatar are showing strong interest in purchasing Indian Basmati rice, which has led to a gradual price increase since March 2025.

A former president of AREA mentioned that the price of the popular Basmati variety 1509 had risen to Rs 6,200 per quintal in September 2024, before dropping to Rs 5,200 per quintal by February 2025.

This lower price reignited both domestic and export demand, pushing the price back up to Rs 5,800 per quintal in March.

Despite the recent increase, the price remains slightly below the peak of September 2024. AREA emphasized that such fluctuations are a normal part of the rice market and should not be linked to political or regional issues. The current price movement is considered a natural part of market dynamics.