Punjab and Haryana farmers are optimistic heading into the upcoming rice harvesting season thanks to a major boom in basmati rice exports from India over the past year. According to the latest figures from the Agricultural and Processed Food Products Export Development Authority (APEDA), basmati rice exports grew by a massive 25% for the 2023-2024 fiscal year, reaching an impressive Rs. 48,389 crores.
This significant surge has been fueled by strong demand from West Asian markets like Saudi Arabia, Iraq, and Iran, who remain the top importers of Indian basmati. With prices already hovering around Rs. 4,000-6,000 per quintal depending on quality and exports showing no signs of slowing, traders expect prices to get a further boost when the new crop starts arriving in September.
The jump in exports is even more striking when viewed over a longer time frame – in just the past four years exports have increased by a whopping 83% from Rs. 26,415 crores to the current figure. This boom has led to an expansion in basmati cultivation as well, with acreage under the premium rice variety rising 16% in Punjab last year to nearly 6 lakh hectares. Agriculture officials predict basin cultivation could top 10 lakh hectares in Punjab and 7.8 lakh hectares in Haryana for the upcoming season.
While the surge is welcome news, exporters have called for relaxing the minimum export price cap of $950 per tonne, arguing it discourages traders and could help India better compete with neighbouring Pakistan. With overall demand and shipments projected to remain strong, farmers in Punjab and Haryana are optimistic of securing higher returns this year thanks to basmati rice’s growing prominence in the international market.
