The prices of various basmati paddy varieties are currently experiencing an upswing compared to last year, thanks to the Centre government’s recent decision to reduce the minimum export price (MEP) of basmati rice to USD 950 per tonne. This move has significantly bolstered the export prospects for aromatic rice.
In the Karnal mandi, located in Haryana and renowned as the epicentre of basmati paddy trade in the country, the Pusa 1121 variety of paddy, which holds a substantial share in basmati rice exports, is now fetching farmers prices ranging from Rs 4,000 to Rs 4,600 per quintal.
This marks a notable increase from the previous year’s price range of Rs 3,800 to Rs 4,000 per quintal.
Likewise, the prices of the short-duration Pusa basmati 1509 paddy are currently in the range of Rs 3,500 to Rs 3,700 per quintal, as opposed to last season’s prices of Rs 3,000 to Rs 3,200 per quintal.
The premium basmati variety CSR-30 is currently commanding prices between Rs 6,000 and Rs 6,700 per quintal in various grain mandis in Haryana and Punjab. Basmati paddy arrivals are expected to continue for another month as the crop is currently being harvested.
Vijay Setia, a former president of the All Indian Rice Exporters Association (AIREA) and a rice exporter based in Karnal, has been quoted in media reports stating, “With basmati paddy arrivals at their peak and robust global demand, prices are at elevated levels, which is anticipated to benefit farmers.”
On 26 October, the government reduced the floor price for basmati rice exports to USD 950 per tonne, down from USD 1,200 per tonne that had been imposed in August.
This reduction came in response to representations from exporters, who argued that the high MEP was not conducive for exports.
The government had initially imposed the USD 1,200 per tonne MEP on basmati rice until 15 October, with the intention of curbing the “illegal shipment of white non-basmati rice” (for which shipments had been banned since 20 July), disguised as premium basmati rice.
In the April-August period of the current fiscal year, India exported 2.1 million tonnes (MT) of basmati rice valued at USD 2.22 billion, marking a 12.6 per cent increase in value compared to the same period in the previous year.
In the 2022-23 fiscal year, the country exported 4.56 MT of basmati rice valued at USD 4.78 billion, with an average price of USD 1,050 per tonne.
