In fiscal year 2024, India’s basmati rice exports have reached unprecedented heights. From April to February, exports surpassed $5.2 billion, with volumes exceeding 4.67 million tonnes. This growth is driven by strong demand, particularly from the Middle East, which accounts for over 70% of exports.

However, geopolitical tensions in the Middle East, including recent conflicts between Iran and Israel, pose challenges for exporters. The ongoing situation has led to increased shipping costs and longer transit times, affecting key markets like Europe and the United States.

Despite these hurdles, analysts predict a potential surge in export orders and prices. Countries such as Iran and Iraq, which currently have ample stock, might increase their imports. Conversely, Gulf nations facing shortages could drive higher demand for Indian basmati rice.

Increased demand is evident as Saudi Arabia, the largest importer, saw a 22% rise in basmati rice value to over $1.1 billion. Iraq’s imports more than doubled in both volume and value. While exports to Iran have declined, the overall trend suggests continued robust growth in the sector.

Ref: Trade reports, market analysis, and insights from S. Chandrasekaran, author of Basmati Rice: The Natural History and Geographical Indication.