Price of Basmati rice rises due to war-like situation between India and Pakistan

07-May-2025 08:00 PM

New Delhi. Over the past 6–7 months, global market prices for Basmati rice had been declining, but the ongoing war-like tension between India and Pakistan—both key producers and exporters—has reversed this trend.

In the last two weeks, the export offer price of premium quality Basmati rice has surged by about 10 percent. Due to growing regional tensions, West Asian countries have accelerated their purchases of Basmati rice from India.

It is important to note that Basmati rice is legally produced primarily in India and Pakistan, with India being the dominant player in both production and export.

The price of the popular Sela Basmati 1509 variety has risen from Rs 5,300 per quintal to Rs 5,900 per quintal in the wholesale market.

Similarly, steam Basmati rice, widely consumed across the country, has jumped from Rs 6,200–6,300 per quintal to Rs 6,900 per quintal.

In the retail market, the price of Sela Basmati has reached Rs 7,500 per quintal, while premium-quality Basmati rice used in biryani has climbed to Rs 8,000 per quintal.

The decline in prices that began around September 2024 was largely due to the minimum export price (MEP) imposed by the Indian government, which initially prompted foreign buyers to shift to Pakistani suppliers. However, after the removal of the MEP, Indian exports gained traction again.

According to a prominent exporter, Basmati prices have increased by 8–10 percent in just the past 15 days. Fearing a possible war between the two exporting nations, foreign importers are rapidly stockpiling supplies.

Saudi Arabia, Iran, Qatar, and even the US have significantly ramped up their imports of Indian Basmati rice.