Basmati Rice Prices Rise as West Asian Buyers Rush Orders Amid India-Pakistan Tensions
Basmati rice prices have increased by up to 10% over the past two weeks, ending a six-month decline. This rise is driven by a surge in purchases from West Asian countries amid growing tensions between India and Pakistan — the world’s top two producers of basmati rice, according to three major exporters.
The price of the popular 1509 parboiled basmati variety, commonly consumed across India, has increased from ₹53 to ₹59 per kg in the wholesale market. Steamed basmati rice, often used for biryani, has gone up from ₹62-63 to ₹69 per kg. In retail stores, the Sella variety is now priced at ₹75 per kg, while the premium biryani variety has reached ₹80 per kg.
Why Prices Are Rising
Basmati prices had been falling since September last year after India introduced a minimum export price (MEP) to secure domestic supply. As a result, global buyers shifted to Pakistan. Although the Indian government later removed the MEP, many orders had already gone to Pakistan, leading to excess supply and falling prices in India.
Now, with tensions rising between India and Pakistan, international buyers are worried about potential disruptions in rice supplies. This fear has pushed them back to Indian markets.
“Prices have gone up 8-10% in the last 15 days. Global buyers, especially from the Middle East, are rushing to secure their orders in case supply is affected by the conflict,” said Gautam Miglani, director of Haryana-based exporter LRNK.
Surge in Global Demand
Exporters say countries like Saudi Arabia, Iran, and Yemen are buying large quantities of basmati rice from India. U.S. buyers are also placing big orders to stock up before a new tariff, known as the Trump tariff, kicks in after 90 days.
“If the conflict escalates, it could seriously disrupt supply chains and push prices much higher,” said Akshay Gupta, head of bulk exports at KRBL, which sells the India Gate brand of basmati rice.
“Over 70% of global basmati exports come from India. Even small disruptions can have a big impact on prices and affect importing countries,” he added.
Suraj Agarwal, CEO of Kolkata-based RiceVilla Group, said that Iran has just floated a tender to buy 50,000 tonnes of rice, which has further boosted demand and market sentiment.
Export Stats and Workforce Issues
India exported 5.24 million tonnes of basmati rice in FY24, earning ₹48,389 crore in foreign exchange, according to data from APEDA (Agricultural and Processed Food Products Export Development Authority).
According to Miglani, the U.S. imports over 300,000 tonnes of basmati rice from India each year. “It takes 60–70 days to ship rice to the U.S., so they’re ordering now to avoid the impact of upcoming tariffs.”
Agarwal also pointed out that rice mills in Punjab and Haryana are facing a shortage of workers, which is affecting production and supply.
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