Domestic prices of Basmati rice decline

Lokmat News Network

Chhatrapati Sambhajinagar:

Exports of basmati rice have been hit due to the ongoing war, with nearly 4 lakh metric tonnes of basmati rice stuck at ports or in transit. As a result, domestic prices have fallen by about 10 percent. However, the impact has not yet been seen in the local market. Traders say prices may start declining in about a week.

Indian basmati rice, known worldwide for its aroma and distinctive taste, saw exports resume in December 2025, when prices ranged between Rs 40 and Rs 100 per kg. With the rise in exports, prices increased to Rs 50–Rs 120 per kg. However, the situation has now changed due to the war.

Basmati rice is mainly exported to Iran and Gulf countries. If the intensity of the conflict reduces within the next 8 to 10 days, exports may resume and the 4 lakh metric tonnes of basmati currently stuck at ports could be shipped abroad. For now, domestic prices have declined by around 10 percent, but the local market has not yet seen a drop in retail prices as sufficient stocks are available and demand from consumers is currently low, exporters said.

About 50 percent of India’s basmati exports go to Middle Eastern countries. Shipments to major markets such as Iran, Iraq, and the UAE have been disrupted. The reasons include higher shipping costs, increased war-risk insurance premiums, and a shortage of containers.

To boost exports, the union Ministry of Commerce has reduced the minimum export price of basmati rice from $1200 per tonne to $950 per tonne. The Rice Exporters’ Association has also urged the government to declare the situation as a “force majeure” event, said trader Nirbhay Devda.

12 tonnes of export-grade basmati sold weekly

About 750 tonnes of rice are sold weekly in the city, of which 250 tonnes are basmati rice. Only 10 to 12 tonnes of export-grade basmati are sold locally. If the war continues, selling pressure may increase within eight days, leading to a fall in basmati prices, said trader Nilesh Somani.