Basmati Rice, known for its long grains, delicate fragrance and distinctive flavor, is experiencing an increase in global demand, especially in its premium forms. According to industry reports, it is estimated that Basmati rice market will reach $ 31.6 billion by 2027, growing at a composition rate or 9.1 percent during the prognostic period of 2022-2027. This growth feeds by increasing global interest in healthy and high quality grains and a growing preference for traditional and specialized rice varieties in western markets. For Indian exporters, this ascending trajectory presents a golden opportunity to take advantage of consumers preferences and reaffirm India’s position as the world leader of Basmati rice.
A pre -peak that is becoming global
Traditionally, a basic element in households in southern Asia, Basmati Rice has now reached the main diets worldwide, from gourmet kitchens in Europe to health -aware households in North America. Factors such as the growing awareness of ethnic kitchens, the increase in disposable income and a growing inclination towards natural and organic food products are promoting this change.
Basmati Premium rice, or aged for an improved texture and flavor, also attracts consumers focused on well -being due to their low glycemic index, gluten -free composition and its rich nutrient profile. As more consumers see foods that sacrifice both taste and health benefits, Basmati rice is emerging as a preferred alternative to regular long grain and processed white rice.
Indian leadership in Basmati’s landscape
From recent data, India represents 70 percent of Basmati rice global exports, with main markets, including Iran, Saudi Arabia, Eau, the United Kingdom and the United States. In fiscal year 2023–24, India exported more than 5.24 million tons of Basmati rice, compared to 3.94 million tons in fiscal year 2021–22. This shows an increase of 14.93 percent in the exported quantity and an increase of 22.05 percent in the value of exports. Basmati rice also represented 1.34 percent of the total exports of India, highlighting its growing world demand and the strong position of India as a leading producer and exporter.
What provides Indian exporters with a competitive advantage is a robust supply chain, a higher grinding infrastructure, favorable climatic conditions in Basmati’s producing regions and the geographical indication state (GI) that protects its authentic and inheritance. Moreoover, the Authority for the Development of Export of Agricultural and Processed Food Products (Appeal) guarantees strict adherence to global quality standards, which further reinforces the buyer’s confidence.
Market expansion and commercial leverage
Commercial agreements such as the Integral Economic Association of India-EA (CEPA) are expected to propose the Free Trade Agreements (FTA) with the European Union and other nations that relieve access to the market, reduce tariffs and improve competitive exports. In addition, Indian companies are increasingly taking advantage of digital platforms and electronic commerce to directly reach global consumers. With a growing population of the diaspora and a growing international interest in Indian cuisine, Indian exhibitors are well positioned to serve ethnic and conventional markets.
Challenges that require strategic response
Despite optimism, certain obstacles must be addressed. The volatility of prices in the global market, the regulations of changing pesticides (special in the EU) and the interruptions related to the climate in the regions that cultivate rice can affect the consistence and profitability of the supply. India also faces a hard competition from Pakistan, which exports a similar variety or basmati rice. Therefore, maintaining superior quality, traceability and brand distinction is essential to maintain the leadership position of India.
To capitalize on the growing global appetite by Basmati Premium rice, Indian exhibitors must focus on strategic initiatives such as brand construction, where Basmati is positioned not only as a grain but as a symbol or Indian inheritance and culinary excellence. Product innovation is also key, the introduction of the pact, nutritious and several rice -based products that meet the needs of evolved consumers. In addition, market diversification beyond traditional buyers in the Middle East and the United Kingdom in Africa, Southeast Asia and Latin America will be crucial to spread the risk and unlock new growth.
The author is a joint managing director, Drk Foods
Posted on May 10, 2025
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