BASMATI RICE

INDUSTRY SCENARIO

OVERVIEW OF BASMATI RICE

INDUSTRY IN INDIA

Basmati is natures gift to Indian sub-continent; its delightful aroma, taste

and texture make it the best among various types of rices in the world .

Typically, the delicately curved, long grained, highly scented rice that
is elongated and cooks soft and fluffy is the one which is categorised as
basmati and enjoys privileged treatment both in domestic as well as
international markets, fetching three times more price.
In the export markets, still the traditional tall basmati variety, Taroari
Basmati followed by Basmati 370 and Type 3 (Dehradun) have
supremacy over other varieties due to their exclusive quality features.
However the evolved varieties of basmati are Pusa Basmati 1121 due
to its extra long slender grains along with Pusa Basmati 1, which has
carved a niche in the international market.

Mostly basmati is cultivated on the foothills of Himalayas and the whole

ambience of the environment bestowing unique properties to this specialty
rice. All the festive occasions are complete only with products prepared
from basmati such as biryani or pulao served tapping the inherent
ambrosial properties of basmati.
Uttaranchal has been reported to be the birthplace of basmati and has
huge potential due to its favourable climatic conditions and popularity
among the farming community.
Overall production of rice in India is 1,592,00,000 tonne (FAOSTAT 2013
In 2013-14, among various states, Punjab had about 5.59 lakh hectare of
area under basmati with annual production of about 14.871 lakh tonne,
whereas in Haryana the area under the crop was 7.21 lakh hectare
producing 18.90 lakh tonne.

RICE ESTIMATES FOR INDIA

(Crop Year: October 2014- September 2015)
PARTICULARS

2013-2014

2014-2015
(ESTIMATED)

OPENING STOCK

19.03

26.78#

PRODUCTION

106.65

104.92

TOTAL IMPORTS

0.00

AVAILABILITY

125.68

131.70

TOTAL EXPORTS

10.14

10.10

ENDING STOCK IN
CENTRAL POOL

18.34

24.50

TOTAL AVAILABLE FOR

DOMESTIC
CONSUMPTION

97.20

97.10

Source: Department of Food & Public Distribution (DoF&PD), Department of Commerce (DoC), Directorate of
Economics & Statistics (D&ES), Department of Agriculture & Cooperation (DAC).
#: estimates in the beginning of the year. : estimates at the end of the year.
Availability: opening stock in central pool plus production plus Imports; Total Availability for Domestic
Consumption: Availability minus (total export plus ending stock in central pool).
For preparing estimate for 2013-14, production has been taken as last three years average; imports as three years
average, export as two years average; ending stock as estimated by Department of Food and Public
Distribution.

Indias Trade Flow for Rice

during 2009-10 to 2014-15
(Unit: Million Tonnes)
Indias Trade Flow for Rice
Export
Year

Basmati

Import

Non-basmati

Basmati

Non-basmati

2009-10

2.02

0.14

2010-11

2.37

0.10

2011-12

3.18

4.0

2012-13

3.50

6.64

2013-14

3.76

7.0

6.64

2014-15 (Apr-Jan 2.92

15)
Source: Department of Commerce

FUTURE PRICES OF RICE

FUTURE PRICES

Contract

OF

week ago
month ago 3 months
9.03.15 3.03.2015 (09 feb)
ago(09 jan)

RICE
% change
6 monts ago over 6
(09 oct.)
months

Mar-15 225.53

228.4

230.16

249.56

280.87

-19.7

May-15 231.04

234.13

235.67

254.63

286.16

-19.26

Jul-15 236.55

239.86

241.18

259.48

290.79

-18.65

Sep-15 239.64

243.17

241.4

264.33

Source: Chicago Board of Trade (CBOT)

THE FUTURE PRICES OF RICE WILL DECREASE OVER THE PREVIOUS YEARS AS SHOWN IN TABLE

FUTURE OF INDIAS RICE

EXPORTS

Ministry has restored duty drawback after a span of nearly

seven years.
India may become the largest exporter of rice( both basmati
and non basmati) next year( i.e. 2015) amid higher demand
anticipated from African and Middle East countries and
competitive prices and other factors as follows:
Surplus rice stockpiles in the country and improved methods
of production have helped position India competitively in the
global rice market. With the paddy harvesting season having
started earlier this month, local rice prices are expected to fall
further.

Ahead of the 2015 general elections in Nigeria, the government is expected to

import huge quantities of rice to distribute to domestic consumer as a populist
measures. India traders are set to gain.
Prices of rice, including basmati, will fall considerably, which will boost exports.
Iran has proposed a free trade agreement with India to boost bilateral trade and
investments.
Indian rice exports to plunge as Thailand offloads stocks: Thailand will open
a tender to sell around 1 million tonnes of rice in March, as it tries to shift over
17 million tonnes of rice built up under a controversial subsidy scheme. It aims to
sell 10 million tonnes in 2015 and 7 million next year. Indian exporters can
compete with private Thai traders, but not with the government as it can cut
prices to generate demand for old stock.

REFERENCES

http://
articles.economictimes.indiatimes.com/2014-10-0
8/news/54784844_1_non-basmati-india-rice-export
ers-association-global-rice-market
http://
www.fnbnews.com/article/detnews.asp?articleid
=36925&sectionid=1
http://
www.thehindubusinessline.com/industry-and-econo
my/agri-biz/indian-rice-exports-to-plunge-as-th
ailand-offloads-stocks/article6951066.ece
http://
economictimes.indiatimes.com/news/economy/forei