Basmati Rice Production to Increase by 20% in 2024 Due to Expanded Farmland and Good Rains

Key Highlights

• Basmati rice production could rise by 15-20% in 2024.
• Good rains and expanded farmland are key factors in this growth.
• Paddy prices are lower due to an expected large harvest and export challenges.
• Iran's import ban is impacting Basmati prices and exports.
• Indian Basmati exports increased by 15% from April to July 2024.

This year, India's Basmati rice production is projected to increase by 15-20%, thanks to more land being used for cultivation and favorable weather conditions, particularly good rains. The All India Rice Exporters Association (AIREA) has predicted a larger crop harvest, although exact figures will be confirmed after a survey.

Also Read: Cotton Prices Rise Across India: Rates Cross Minimum Support Price (MSP)

Basmati Exports Growing

India's Basmati rice exports have also grown by 15% between April and July, generating more than $2.036 billion in revenue. With a larger crop and sufficient stock levels, the government may adjust the minimum export price, which could further boost exports and support growth in this sector.

Why Is Basmati Production Increasing?

The increase in Basmati production is largely due to favorable weather and higher returns from previous harvests. According to Satish Goel, president of AIREA, farmers have been encouraged to plant more Basmati this year because of these favorable conditions.

Last year, the Agricultural and Processed Food Products Export Development Authority (APEDA) estimated that Basmati rice production in India reached about 98 lakh tonnes, with over 21 lakh hectares of land being used for cultivation. This year, both the planted area and yield are expected to be significantly higher.

Also Read: Paddy Prices Rises to Rs 3692/Quintal: Market Trends & Insights

Impact on Prices and Exports

While production is increasing, prices for Basmati paddy have dropped. This is due to the expectation of a bumper crop and ongoing challenges in the export market. One major challenge is Iran’s import ban, which has lowered both Basmati prices and export volumes. Despite this, India’s Basmati exports grew by 15% from April to July, contributing over $2 billion to the economy. The government may soon reduce the minimum export price, potentially enhancing future export growth.

Future Outlook for Basmati Rice

The future of Basmati rice production in India looks bright. If conditions remain favorable, the crop yield could rise by as much as 20% in 2024. Although there are some challenges, particularly with the Iran export ban, the overall outlook for global demand and export growth remains positive.

Also Read: Registration for Selling Kharif Crops at MSP Starts September 19

CMV360 says

India's Basmati rice production is set to grow by up to 20%, driven by favorable weather and expanded farmland. While export challenges, like Iran's import ban, persist, strong global demand and potential government adjustments could boost exports, making 2024 a promising year for Basmati farmers.