Indian basmati rice exporters see surge in early shipments requests amid non-basmati rice ban

Indian basmati rice exporters are experiencing a surge in requests from international buyers for early shipments, following New Delhi's recent ban on exports of non-basmati white rice.

The ban was put in place to stabilize local prices, which had soared by 3% within a month due to crop damage caused by heavy monsoon rains.

India, the world's leading rice exporter, has exported approximately 4.5 million metric tons of basmati rice during the 2022-23 period, with key buyers including Saudi Arabia, Iran, Iraq, UAE, Yemen, and the United States. Conversely, the banned non-basmati white rice was primarily purchased by countries such as Senegal, Benin, Togo, Bangladesh, and Cote d'Ivoire.

This ban marks the first time that India has prohibited non-basmati rice exports, though the country had previously levied export taxes on the product in 2008. India also surprised the market last year by banning wheat exports and later imposing restrictions on sugar and rice exports.

Despite facing challenges due to heavy rainfall and flooding in basmati rice-growing states such as Punjab, Haryana, Uttar Pradesh, and Himachal Pradesh, the outlook for basmati rice production in 2023 remains optimistic. Vijay Setia, an exporter, disclosed to Reuters that many farmers in Uttar Pradesh have been transitioning from non-basmati to basmati rice cultivation due to the latter's higher prices.

The increased demand for early shipments reflects the confidence of international buyers in India's basmati rice quality and its potential to meet their requirements. As exporters brace themselves for this heightened demand, they are optimistic about a fruitful year ahead.

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