India – Pakistan tensions raise prices of Basmati rice

The price of Basmati rice has risen by as much as 10% over the past two weeks, reversing the downward trend that began more than six previously, as West Asian buyers are among the top two producers of aromatic cereals amid rising tensions between India and Pakistan, three large-scale Basmati Exporters.The price of the most popular Basmati rice 1509 varieties consumed every day in many parts of India has increased from Rs 59 to Rs 59 from Rs 53 to Rs 59 in the last two weeks. The rice used to make steamed rice for biryani has risen from Rs 62-63, at a price of Rs 69 per kilogram. At retail level, the price of the Sierra varieties has risen to Rs 75 per kg and the premium varieties used in Biriyani are 80 per kg.
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Prices for Basmati Rice have already begun to fall in September last year as global buyers moved to Pakistan after India launched the lowest export price to ensure local supply. The government then lifted the cap, but by then, buyers had placed orders in Pakistan, which led to supply of Basmati rice in the domestic market, thus lowering prices. Buyers are now back in India due to concerns over potential supply disruptions.

“Price in the global rice market is up 8-10%. Rising tensions between India and Pakistan may undermine the supply of Basmati rice, while costs will escalate,” said LRNK Gautam Miglani, a home based in Basmati Rice. “This has prompted global buyers, especially those from the Middle East, to increase imports from India,” he said.

Exporters say countries such as Saudi Arabia, Iran and Yemen are picking up large amounts of Basmati rice from India. They say U.S. buyers are also withdrawing inventory in the market before the 90-day window for Trump tariffs ends. Impacting internal economy and stability is crucial to maintaining an uninterrupted agricultural supply chain, especially for basic staples like Basmati rice. ”

“As more than 70% of global Basmati exports come from India, even minor disruptions will escalate through supply chains, labor-intensive import countries and costs,” the KRBL director added.

“Iran just tendered to buy 50,000 tons of rice, which boosted sentiment in the Basmati rice trade,” said Suraj Agarwal, CEO of the Kolkata-based Ricevilla Group, which sells rice in India and abroad.

According to the Agricultural and Processed Food Export Development Authority (APEDA), India exported 5.24 million tons of Basmati rice in fiscal 24, earning Rs 483.89 crore in foreign exchange.

LRNK's Miglani said U.S. buyers import more than 300,000 tons of Basmati rice every year from India. “It takes 60-70 days to ship the rice to the United States. So they place orders now to get goods before Trump's tariffs take effect.”

Rice plants in Punjab and Haryana do not provide enough workers for rice plants, which affects the supply side. ” Agarwal said.