Global Demand Fuels Basmati Rice Price Increase

The All India Rice Exporters Association (AIREA) has clarified that the recent rise in Basmati rice prices is due to a surge in international demand, not geopolitical tensions between India and Pakistan.

AIREA President Satish Goel highlighted that varieties 1509 and 1718 have seen a slight price increase since March, attributing this to higher demand from countries like Saudi Arabia, Iran, and Iraq. "The price movement is demand-driven. There is no disruption in trade due to India-Pakistan tensions," Goel stated.

Market Dynamics Over Politics

Former AIREA president Vijay Sethia supported this view, noting that after a peak in September 2024, prices for the 1509 variety fell due to a bumper harvest. However, March saw a rebound to Rs 58 per kg, still below September's highs. "The current rise is purely market-driven and has no correlation with the political situation," Sethia added.

India's Basmati rice exports stood at approximately 6 million tonnes in FY 2024–25, significantly outpacing Pakistan's 1 million tonnes.