basmati rice prices hikeAccording to sources, it has been reported that Basmati prices have climbed on in view of rising demand from Iran, which plans to ban inbound shipments of the unique Indian rice variety. However, prices of non-aromatic rice in eastern India remained flat as exports to Bangladesh came to a halt after the country doubled import duty on the grain. Further, it has been observed that Basmati prices have been increasing since the last one month. In addition, it has been noted that there was a jump of 20%, largely in 1121 variety, which is trading at Rs 46 a kg at wholesale rates, as revealed by MR  Mohinder Pal Jindal, President of All India Rice Exporters Association. It was also narrated that the Iran is a major importer of Indian basmati rice, while the West Asian countries accounted for 75% of India's basmati rice exports in the year 2014-15.

Further, in this matter Mr Jindal explained that traders have been signing contracts and sending rice shipments ahead of a ban on Indian basmati starting from 23rd July as Iran seeks to protect its local industry. In this issue, Mr Vijay Setia, Past President of New Delhi-based AIREA, also informed that Iran had imported 40 lakh tonnes of basmati rice in FY- 2016 as compared with 37 lakh tonnes in the previous year. Moreover, the prospects for basmati rice have improved after almost two years, as stated by Mr Setia as rice is the staple diet for almost half the global population. Further, it has been observed that over 90% of the global rice output and consumption is centered in Asia, with China and India both the world's largest producers and biggest consumers. However, India accounts for over 70% of the world's basmati rice output, which is a small portion of the total rice produced in India. As per data is available, it has been indicated that rice production in India is to be expected at 103.36 million tonnes in the year 2015-16.

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Furthermore, it has been revealed that the prices of basmati rice are on an upward trend as compared with last year, according to Mr Gaurav Jain, Director of DCP India, which sells basmati under the Asbah brand. Moreover, it has been seen that countries like Netherlands, Italy, Spain, Cyprus and Maldives are also showing keen interest in Indian basmati rice, which is superior and price competitive as compared to Pakistan's rice. Due to these reasons, the India’s basmati rice is being enjoyed by around 65% market share internationally, as Mr Jain added. However, it has been noted that the prices of the non-aromatic variety from West Bengal, the largest rice producing state in India, have fallen as exports to Bangladesh dried after the country doubled import duty on rice to 20%.

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