Basmati Rice Export Prices Plunge to 17-Year Low

12-Jun-2025 11:54 AM

New Delhi. Despite a significant drop in the export offer price of Basmati rice, Indian exporters have managed to maintain their income levels due to a substantial rise in export volumes. As there is no minimum export price (MAP) applicable for Basmati rice, exporters are free to enter into contracts at any price.

According to trade analysts, the free on board (FOB) average unit export offer price of Basmati rice was $1080 per tonne in May 2024, which declined by 23 percent to $831 per tonne in May 2025. When the current marketing season began in October 2024, the export price was $977 per tonne, already 20 percent lower than the prevailing rate of $1226 per tonne in October 2023. The price has dropped by 15 percent over the last eight months.

In the 2007-08 season, the export offer price of Basmati rice had risen sharply by 53 percent to $907 per tonne, and in 2008-09, it surpassed the $1000 mark for the first time. Since then, prices have shown limited fluctuations, with the highest level recorded in 2014-15, when the average price exceeded $1220 per tonne.

Global rice prices have remained sluggish over the past two months, but the Basmati rice export trade continues to perform well due to the sharp decline in prices. However, trade analysts caution that Basmati is a premium quality rice, and maintaining its price is crucial to preserving its reputation. A steep drop in price raises concerns about its quality and reliability, which could harm its long-term market position. While demand has increased at current low prices, imposing a MAP could reduce export volumes.