Indian rice exports up 10% in April-May as basmati shipments gain 21%

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Indian rice exports have been off to a good start in the current financial year with shipments increasing by about a tenth in the first two months to more than 3.67 million tons compared to 3.36 million tons in the same period last year due to strong demand for basmati rice.

Shipments of basmati rice increased during this period by 21 percent to reach 8.30 thousand tons, compared to 6.85 liters last year. Similarly, shipments of non-basmati rice, despite restrictions on broken rice and export duties, rose 6 percent at 2.84 metric tons versus 2.67 metric tons.

Basmati shipments to West Asia, the main market for aromatic rice, recorded a 13 percent increase at 6.15 liters compared to 5.43 liters a year earlier due to higher demand from countries such as Iran, Iraq, Kuwait, Qatar and the United Arab Emirates. However, shipments have declined to countries such as Saudi Arabia and Yemen. Dollar exports to West Asia rose by 22 percent to reach $665 million ($545 million in the same period last year).

Earn in other geographic areas

To other geographic regions such as the European Union and Asian countries, shipments of basmati doubled during these two months. Shipments volumes to the European Union rose 154% to 41,644 tonnes (16,407 tonnes) based on demand from the Netherlands, Germany, Italy and Belgium. The value of basmati exports to the European Union increased during the period from April to May by 196% to reach $52.61 million ($17.74 million). In Asia, countries like Bangladesh, Bhutan and Nepal among others have intensified purchases of aromatic rice with volumes rising to 15,339 tonnes (6,995 tonnes).

Similarly, in the case of non-basmati rice, shipments to Africa during April and May increased to 20.96 liters (15.49 L), while exports to West Asia registered a growth of 24 percent at 2.20 liters (1.77 L). “There is good demand. Despite some restrictions, shipments are increasing,” said P. V. Krishna Rao, president of the Rice Exporters Association. India has restricted exports of 100 percent broken rice and imposed 20 percent duties on exports of white and brown rice since September 8, 2022.