Basmati Rice exporters have maintained this marketing year (from October 2024 to October 2024) despite a sharp decline in contracted fees and no minimum export prices (MEP).
Trade sources show that the average basmati export price in May fell to $831/ton/ton, above 23%, from $1,080 a year ago.
The season fell 20% in October 2024 to $977/ton from $1,226 a year ago, but prices have fallen 15% over the past eight months.
“From 2007 to 2008, the average annual basmati export price exceeded 53% to $907/ton, exceeding $1,000 for the first time next year.
“Since then, there has been little variability, except in 2014-15 when the average rate exceeded $1,220 per tonne,” the veteran exporter said.
Trade policy expert Chandrasekaran highlighted the need for deeper introspection for the reform of the second generation Basmati Rice.
Policy reform
“We must seriously deliberate how to accelerate, navigate and profit from scaling global markets while managing quality and credibility,” he said.
He said the current quarter-century-old Basmati rice export standards need to be reconsidered.
High demand last year driven by the Russian-Ukraine war, Dinesh Chhatra, COO of GRM overseas, said the prices of aromatic rice were significantly increased.
However, prices have been declining this year as robust purchases are in similar demand. This is mainly due to last year’s bumper hardening production.
While some experts advocate that they maintain the price standard for Indian Basmati, Chhatra believes that retaining the MEP can reduce exports.
He noted that some Basmati consignments were sold well above average prices. The government removed a $950/ton MEP of Basmati Rice in response to requests for reduced exporters last September.
Official data show that Basmati exports jumped to 3.99 million tonnes (MT) from October 2024 to April 2025, up 16% from 3.43 MT a year ago.
Basmati has remained one of India’s top three agricultural export items for the past decades.
Released on June 11, 2025
