Basmati Rice Exports Rise as Offer Prices Drop

13-Jun-2025 05:42 PM

New Delhi. Although Indian Basmati rice continues to see strong demand in the international export market, exporters are being compelled to lower the export offer price of this premium-quality rice to maintain competitiveness. The average free on board (FOB) unit export offer price for Indian Basmati rice, which stood at $1080 per tonne in May 2024, fell by more than 23 percent to $831 per tonne in May 2025. Despite an increase in the volume of exports, total export earnings are likely to remain around last year's level.

According to official data, between October 2024 and April 2025, Basmati rice exports from India reached 39.90 lakh tonnes, up by 5.60 lakh tonnes or 16 percent from 34.30 lakh tonnes during the same period of the 2023–24 marketing season. However, the decline in average unit price has limited the expected growth in overall export revenue. Basmati rice has consistently ranked among India's top three agricultural export products over the past several decades.

Industry analysts have pointed out that while low prices may boost short-term export volumes, Indian exporters should be cautious about long-term implications. Contracting Basmati rice at lower prices may harm its premium image and credibility. As a superior quality product, Basmati rice should ideally command the highest price in the market. Using price reductions as a strategy to drive exports could potentially undermine its value in the future.

Previously, the government had imposed a minimum export price (MEP) of $1200 per tonne to safeguard the premium positioning of Basmati rice. This was later reduced to $950 per tonne and eventually withdrawn in September 2024 following requests from exporters. It was anticipated that exporters would voluntarily maintain high offer prices to preserve the prestige of Basmati rice, but current trends suggest otherwise.