Basmati rice in bulk accounts for the majority of rice exports in India and Pakistan. The consumption market of this rice is mainly in the Middle East countries such as Iraq and Iran, or in Europe.
- 1 Basmati rice in bulk: an overview
- 2 Basmati rice in bulk is dominated by India and Pakistan
- 3 Factors affect the exports of basmati rice in bulk
- 4 Leading suppliers of basmati rice in bulk
Basmati rice in bulk: an overview
Basmati rice belongs to the fragrant rice family and comes from the Indian subcontinents. Due to a great amount of 2-acetyl-1-pyrroline, basmati rice smells like pandan leaves making the rice unique compared to other rice varieties.
Currently, there are 2 brands of basmati rice dominating the market: Indian basmati rice and Pakistan basmati rice. Under the label of basmati rice in bulk from India, there are Basmati 370, the R.S. Pura Basmati, and Basmati 385. Pakistan focuses on D-98, PK 385, and Super Kernel Basmati Rice. In addition, Pakistan offers more affordable export prices than India, with 970 USD/MT and 1104 USD/MT, respectively.
Basmati rice in bulk is dominated by India and Pakistan
India and Pakistan are the only two exporters of basmati rice in bulk. In 2019, about 85% of basmati exports were from India, equivalent to 7.2 million tonnes. Pakistan exported more than 2.7 million tonnes of basmati rice in bulk.
There are 3 reasons for the domination of India and Pakistan in the market of basmati rice in bulk.
- Basmati rice is originated from these countries
“Historic evidence shows that Basmati is a distinctive cultivar developed by the farmers of India and Pakistan at least 250 years ago, and grown in many parts in these two countries ever since,” said Dr. Y. L. Nene, Chairman of Asian Agri-History Foundation.
With a long history of growing basmati rice, India and Pakistan have become the major producers, with favorable weather conditions and advanced farming techniques. As a result, basmati rice in bulk from these countries can satisfy strict requirements in the EU market.
- India and Pakistan have wide basmati growing areas and a large rice production capacity
The area under basmati rice cultivation is 2.1 million ha across India, particularly in Himachal Pradesh, Delhi, Punjab, and Haryana. Pakistan also has 1 million ha to grow basmati rice, primarily in Sindh, Balochistan, and KP.
The basmati production capacity in these two countries is considerably high. In the 2011-12 season, 2.4 million tonnes of basmati rice were produced in Pakistan. The total rice production volume in India is much higher, which was 5 million tonnes.
- The government establishes supporting policies for the development of basmati rice in bulk
The government in India and Pakistan have also adjusted policies to promote basmati rice exports. India abolishes the minimum price with basmati rice in bulk to help exporters sell rice even if the price falls below 700 USD/ton. High-quality Indian basmati rice is currently around $1055-1065/ton, FOB.
Factors affect the exports of basmati rice in bulk
For the successful trade of basmati rice in bulk, it is important to consider the following factors.
Basmati rice production
The supply chains of basmati rice in bulk depend on the total rice production. Pakistan’s basmati rice production was only 2.4 million tons in 2011-12, leading to a decrease in rice exports. Only about 1 million tons of basmati rice in bulk were exported, down 16% compared to 2010-11.
In 2016-2017, the price of basmati rice in bulk increased by 50% due to lack of supply.
- Bad weather is the main cause of the decline in basmati rice production.
The late rainy season and droughts in some of the main basmati rice-growing areas in India have resulted in a decrease in the area planted for this crop in 2016-2017. Basmati rice cultivation area in 2016-2017 was 1.6 million hectares, down 20% from 2.1 million hectares in 2015-2016. Hence, India’s basmati rice production is estimated to decrease by 18% to 8 million tons in 2016-17 from 9.8 million tons in 2015-2016.
- The shrinking growing area results in a decrease in basmati rice production
Over the past five years, the area under basmati rice cultivation in Pakistan has decreased by nearly 30%, to just 1 million ha out of a total rice cultivation area of 2.8 million ha. As a result, the basmati production volume decreased significantly.
The global demand for basmati rice in bulk
The consumption market of basmati rice in bulk stretches from the Americas, the Middle East to Europe with a large number of imports.
- Iraq imported nearly 3 million tonnes of basmati rice in bulk, while 2.5 million tonnes were distributed to Saudi Arabia.
- Iran is India’s largest basmati rice export market and accounts for 25% of India’s total fragrant rice exports annually, equivalent to 1 million tons of rice.
- The EU market is also very potential when importing 450 thousand tons of basmati rice in bulk annually.
The logistics situation also directly affects the trade of basmati rice between India, Pakistan, and consumer markets. For example, the limited infrastructure of the Kakinada Anchorage port in India has congested shipping. Therefore, the cost of rice delivery by container skyrocketed, forcing customers to find other suppliers even though the FOB price of basmati rice in bulk is 100 USD lower.
Exporting basmati rice in bulk from India and Pakistan to other countries will be affected intermediately by governmental regulations.
- Iran’s recent reopening of its rice import market could provide a boost to India’s exports of basmati rice in bulk. India’s basmati rice exports increased by 25% in rupee terms in the first 8 months of 2018.
- Because Pakistan is not imposed a minimum export price (MEP) like India, the basmati rice export price of Pakistan is more affordable than that of India.
Read more: Basmati rice is different from jasmine rice
Leading suppliers of basmati rice in bulk
Finding a reliable source plays a crucial role in the trade of basmati rice in bulk. Here is a list of the top 4 reputable basmati rice suppliers in India and Pakistan.
Rajesh Industries supplier of basmati rice in bulk
Rajesh Industries specializes in supplying basmati rice in bulk from India. The types of basmati rice that the company provides are Aromatic Indian Basmati Rice, non-sticky Indian Basmati Rice, Indian Sella Basmati Rice, etc.
To meet the export demand, Rajesh Industries has a milling plant, which is responsible for processing and packaging basmati rice in bulk.
Currently, the company has more than 100 employees and exports rice to countries such as the US, Saudi Arabia, or Nigeria.
Tai Mahal suppliers of basmati rice in bulk
Taj Mahal is a supplier of bulk basmati rice from India. They have more than 60 years of experience in exporting rice to more than 45 different countries. Owning 2 milling plants equipped with advanced machines, Taj Mahal ensures high-quality basmati rice in bulk.
HAS Rice Pakistan supplier of basmati rice in bulk
HAS Rice Pakistan was established in 1969 as a retailer supplying the domestic market. The company later developed into a leading exporter of basmati rice in Pakistan. HAS Rice Pakistan annually supplies 195000 bags of basmati rice in bulk with top quality.
Bismillah Sehla Processing Plant supplier of basmati rice in bulk
Bismillah Sehla Processing Plant is one of the leading basmati rice in bulk suppliers in Pakistan. Annually, the company produces 30000 tons, serving 1324 customers in 15 different countries. Bismillah Sehla Processing Plant products include 1121 Basmati Rice, PK-386 Rice, and SUPER BASMATI Rice.
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