Who are the major producers of basmati rice?
Basmati rice is majorly produced in India, with balance quantity from Pakistan. India’s basmati rice exports are about 37 per cent of the total rice exports by quantity and 60 per cent by value.
Which are the major export markets for Indian basmati rice?
India exports basmati rice to Iran, Saudi Arabia, Iraq, UAE, Kuwait, Iraq, the UK, Yemen Republic, USA, Canada and Oman. The Middle East, constituting 74 per cent of India’s Basmati rice exports, remains a pivotal basmati rice market.
What is quantum of exports?
India exported basmati rice worth Rs 50,312 crore in 2024-2025 fiscal year, when compared to about Rs 48,389 crore in 2023-2024.
What has been export challenges amid the geopolitical tensions?
Despite the tensions between Iran and Israel, the export of Indian basmati rice surged by Rs 1,923 crore in 2024-25 fiscal year, when compared with the previous fiscal year. Some players have stopped exports to Iran due to the recent conflicts.
Industry players had also pointed out earlier that due to the 50 per cent tariff (25 per cent on Russian oil purchases) on Indian exports to US levied earlier is posing yet another challenge to the India Basmati exports to the USA with preferential treatment to Pakistan.
If the 50 per cent tariff remain in place for an extended period, it could impact India’s competitiveness in the U.S. basmati market as Pakistan export currently enjoy a 19 per cent tariff, which is a much lower level, they added.
However, now US has removed the additional 25 per cent tariff. Through an interim framework, US had agreed to reduce the reciprocal tariffs on India to 18 per cent from 25 per cent.
But, the trade deal negotiations between India and US has been put on hold, after the Supreme Court verdict striking down the sweeping tariffs levied by the Trump administration.
Post the Supreme Court verdict, Trump invoking his authority under section 122 of the Trade Act of 1974, imposed a 10 per cent ad valorem import duty on imports into the US, on top of any existing tariffs, and then issued a proclamation putting them into effect. This can go up to 15 per cent. The current Middle East conflict has affected shipments.
