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Indian Express
4 days ago
- Business
- Indian Express
‘Sweet aroma of new opportunities': Basmati exporters eye Middle East, other markets amid US tariff challenge
With most of the over 60 lakh metric tonnes of Basmati exported from India coming from Punjab and Haryana, exporters are worried about the challenges posed by the latest US tariffs and how it would impact the industry. After the newly announced 25 per cent additional tariff, India has now joined Brazil at the top of the list of countries facing the highest import taxes under President Donald Trump's tariff regime. But what if the US tariffs make Indian Basmati uncompetitive? Can other markets absorb this quantity, and where is the demand strongest? According to APEDA, Punjab and Haryana produce around 80 per cent of the country's Basmati, with the former ranking number one. The Basmati grown here also comes under the GI tag, which also leads to high demand abroad. 'Loss of American market need not spell disaster' In the 2024–25 financial year (April–March), India exported around 3.61 LMT of Basmati to the US. Experts said that while recent developments indicate a setback for the country's Basmati exporters after Washington slapped a steep tariff on imports, the US actually accounts for a modest share of India's total aromatic rice trade. 'With strong demand elsewhere, experts say the loss of the American market need not spell disaster—if exporters move swiftly to tap alternative buyers,' said an exporter. The US-bound Basmati could be redirected to West Asian countries like Saudi Arabia, Iran, Iraq, UAE, Yemen, and Oman. The region is already the largest buyer, purchasing around 70 per cent of the exports, with Saudi Arabia, Iran, and Iraq accounting for around 50 per cent of the Basmati exports in 2024–25. By maintaining stricter quality standards, Europe and the UK can also consume some quantities, given the presence of a strong diaspora there. Demand in the domestic Indian market during weddings, festivals, and for luxury consumption is also increasing. 'No doubt the Middle East, which has both the appetite and cultural preference for Indian Basmati, has a huge demand for it. Saudi Arabia alone imported over 11 LMT in 2024-25, so an additional 3–4 LMT across the Middle East region is feasible. But sudden high tariffs by the US require some preparation, and it may hit Basmati exports a bit in the beginning,' said a source with the APEDA. 'Gradually, however, Indian Basmati will find a new place, and US-bound Basmati could be exported to other countries. In 2023–24, India was exporting Basmati to 150 countries, which increased to 154 countries in 2024–25,' the source said, adding that the surplus Basmati can be absorbed, though prices would likely fall to some extent initially, but not for long. 'Actual impact will be smaller' 'Even if the US market is lost due to high tariffs, it will help in adaptability and in creating new markets,' said a member of the All India Rice Exporters Association (AIREA), adding that since America accounts for only 6 per cent of the total exports, the impact is smaller in scale than people might assume. 'Suddenly losing the US market might be a blow in the current scenario, but India's Basmati story does not end there. For exporters willing to diversify and adapt, the sweet aroma of new opportunities is already waiting for them in various countries,' said another exporter. Director of the Punjab Rice Millers and Exporters Association, Ashok Sethi, said US tariffs on Basmati will certainly hit prices because India exports 3–4 lakh tonnes of Basmati to the nation and for this to be consumed by already existing markets, would mean that prices would slip lower. 'Moreover, the Basmati cultivation season is already over in Punjab, and this year around 6.83 lakh hectares are under the crop. Exporters will have to assess the market before purchasing from farmers,' he said.
Mint
14-05-2025
- Business
- Mint
India eyes bumper basmati crop as short-duration variety acreage set to rise 10%
NEW DELHI : India is set to solidify its status as the world's largest basmati rice producer, with the acreage under short-duration basmati varieties expected to surge by up to 10% this Kharif season (June to October) — a shift driven by better prices, faster crop cycles, and rising export momentum. "We are anticipating increase in area of short duration basmati varieties by 7-10% as farmers got remunerative price last year," said Satish Goel, president, All India Rice Exporters Association (AIREA). Short-duration basmati varieties mature in 115–125 days — about 20–25 days earlier than longer-duration types — allowing farmers to save on input costs, better manage stubble, and grow an additional crop in between. This shift is expected to push India's total basmati acreage beyond 3 million hectares, further strengthening its lead in global exports. Also read: Mint Primer | This rice is set to make your meal climate-friendly Remote sensing expert supports this view. 'As per initial estimates, the area under short-duration basmati varieties would increase by at least 7% across all the major basmati-growing belts," said Dr Dharmesh Verma of Anvik Value Chain Pvt Ltd, which conducts crop surveys using satellite imagery and field assessments. Top basmati belts Punjab, Haryana, and western Uttar Pradesh continue to be the top basmati-producing states. Punjab led last year with 1 million hectares under basmati, followed by Haryana (0.97 million hectares) and western UP (0.81 million hectares). Amritsar district alone accounted for the largest basmati area in Punjab, followed by Muktsar and Tarn Taran. In 2024, long-duration basmati varieties accounted for 53.7% of the total area of 2.88 million hectares under basmati cultivation, while short-duration types covered 46.3%. This year, with the expected rise in acreage, the share could increase further. In Punjab, 1 million hectares out of a total 3.27 million hectares under paddy were planted with basmati last year. Also read: Biryani boom drives surge in basmati rice demand across India Among the most widely cultivated short-duration varieties are Pusa Basmati-1509, Pusa Basmati-1692, and Pusa Basmati-1847. Pusa-1509, in particular, matures about 20 days earlier than the traditional PB-1121 variety, offering farmers significant advantages. Many farmers in Amritsar are shifting from short-duration paddy to short-duration basmati due to better returns and less dependency on government procurement, said Arjun Singh, a farmer and sarpanch from Hoshiarnagar, Punjab. The adoption of short-duration varieties enables the planting of short-season crops like vegetables between wheat harvesting and paddy sowing, improving farm incomes and crop diversity. Export edge The increase in production will cement India's position in export market. In fiscal year 2024-25, with an export of 5.94 million tonnes of premium basmati rice, India outpaced its closest competitor, Pakistan. India has been the largest exporter of rice for a decade now. In 2023-24, the total volume of export was 5.24 million tonnes. Also read: India sets record grain production target of 354.64mt for 2025-26, to help boost rural demand Experts mentioned that although short duration paddy would witness increase in area, however its too early to say on long duration variety which is likely to see some decline this year as compared to last year. 'We foresee an increase in the area of short-duration varieties like PB-1509 and PB-1692, while long-duration varieties such as PB-1121 and PB-1401 may see a decline," said Vijay Setia, former AIREA president. Last year, the total area under long duration basmati was 1.58 million hectares. Queries sent to Ministry of Agriculture & Farmers' Welfare spokesperson remained unanswered. Although, the area under basmati is irrigated but rainfall during monsoon at critical stages plays an important role in deciding the yield. In such a scenario, the arrival of monsoon which is expected to hit India's Kerala on 27 May, five days earlier than usual is a positive sign for basmati growers. The development assumes significance as it raises hope for bumper harvests.
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Business Standard
09-05-2025
- Business
- Business Standard
Basmati prices up on higher demand, not due to India-Pak tensions: AIREA
The trade has not been affected so far and the orders are being fulfilled smoothly, says AIREA president Press Trust of India New Delhi All India Rice Exporters Association President (AIREA) Satish Goel on Friday ruled out any impact on Basmati trade, stressing that the recent increase in prices of the commodity is owing to higher demand and not due to the ongoing India-Pakistan tensions. The export price of Basmati rice varieties --1509 and 1718 -- have inched up slightly since March due to rise in demand and not due to supply disruptions caused due to ongoing military escalations between the two nations, he said. "Not due to ongoing India-Pakistan tensions, the Basmati prices have gone up recently. Prices rose slightly because of higher demand from Saudi Arabia, Iran and Iraq," Goel told PTI. The trade has not been affected so far and the orders are being fulfilled smoothly, he added. AIREA former president Vijay Sethia said in September 2024, Basmati rice, particularly the 1509 variety, were ruling high at Rs 62 per kg. Thereafter, prices dropped mainly due to a bumper crop arrival. Large arrivals of 1509 paddy as well as other Basmati varieties in major producing regions led to downward pressure on prices. The prices of the 1509 paddy variety were ruling down at Rs 52 per kg till February. However, the rise in demand in March pushed the prices slightly upward to Rs 58 per kg, but noted that the prices are still ruling below the September 2024 level. "It has nothing to do with the ongoing tension between the two nations," Sethia noted. India exported around 6 million tonnes of Basmati rice in 2024-25, while Pakistan shipped around 1 million tonnes.
Time of India
09-05-2025
- Business
- Time of India
Basmati price rise due to demand surge, unrelated to India-Pakistan tensions: Exporters body
The recent uptick in Basmati rice prices is driven by increased international demand and not linked to geopolitical tensions between India and Pakistan, according to the All India Rice Exporters Association ( AIREA ). AIREA President Satish Goel clarified that the export prices of Basmati varieties 1509 and 1718 have seen a slight rise since March due to higher demand from countries like Saudi Arabia, Iran, and Iraq. "The price movement is demand-driven. There is no disruption in trade due to India-Pakistan tensions," Goel told news agency PTI. He emphasized that export operations continue without interruption and all orders are being fulfilled smoothly. Operation Sindoor Operation Sindoor: 'India won't give face-saving exit to Pak army chief Asim Munir' Pak def min gives absurd excuse for army's failure to withstand Op Sindoor '1971 war was not remotely as terrifying': Residents of border areas shell-shocked Backing this view, former AIREA president Vijay Sethia noted that the prices of the 1509 variety, which peaked at Rs 62 per kg in September 2024, declined following a bumper harvest. A significant arrival of paddy in key producing regions had pushed prices down to Rs 52 per kg by February. However, rising demand in March nudged prices up to Rs 58 per kg, still below their September highs. 'The current rise is purely market-driven and has no correlation with the political situation,' Sethia added. India exported approximately 6 million tonnes of Basmati rice in FY 2024–25, while Pakistan accounted for around 1 million tonnes. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
