HS Code:
Basmati rice, classified under HS Code 1006.30.20 (semi-milled or wholly milled rice, whether or not polished or glazed), is a long-grain aromatic rice primarily grown in the Indian subcontinent. Known for its distinct fragrance and fluffy texture when cooked, Basmati rice is a premium agricultural product with significant cultural and economic importance. It is a staple in South Asian cuisine and has gained popularity worldwide for use in dishes like biryani and pilaf. The trade of Basmati rice is influenced by factors such as agricultural policies, climate conditions, and intellectual property disputes over geographical indications.
Total Trade Volume
Approximately 5.5 million metric tons
Data from 2022
Source
International Trade Centre (ITC), USDA Reports, and FAO Statistics
4.5 million metric tons
81.8% of global Basmati trade of total trade
Increasing
0.8 million metric tons
14.5% of global Basmati trade of total trade
Stable
0.1 million metric tons (re-exports)
1.8% of global Basmati trade of total trade
Increasing
0.05 million metric tons (re-exports)
0.9% of global Basmati trade of total trade
Stable
0.03 million metric tons
0.5% of global Basmati trade of total trade
Decreasing
Average Rate
10-15% ad valorem
Highest Rate
Up to 50% in certain markets like the European Union (under specific quota limits)
Lowest Rate
0-5% in GCC countries under free trade agreements
Growing demand in Middle Eastern markets
Increased exports from India and Pakistan to countries like Saudi Arabia and UAE due to large South Asian expatriate populations and cultural preferences.
2021-2022
Rising organic Basmati rice segment
Shift toward organic and sustainably grown Basmati rice in Western markets like the US and EU, leading to premium pricing and higher profit margins for exporters.
2020-2022
Impact of climate change on production
Erratic monsoons and water scarcity in the Indian subcontinent have led to fluctuating yields, affecting export volumes and prices.
2019-2022
India secured Geographical Indication (GI) status for Basmati rice in the EU, a move contested by Pakistan, which also claims origin rights. This has led to ongoing negotiations over shared GI status.
September 2021
Potential market access advantages for Indian exporters in the EU, while Pakistan may face challenges unless a compromise is reached.
India lifted certain restrictions on non-Basmati rice exports in 2022 but maintained close monitoring of Basmati exports to ensure domestic supply stability amidst global food security concerns.
October 2022
Increased export opportunities for Indian traders, stabilizing global Basmati prices after a period of volatility.
Agricultural research institutes in India and Pakistan introduced high-yield, disease-resistant Basmati variants to boost production and meet growing global demand.
March 2023
Expected to enhance export volumes in the coming years, potentially reducing prices due to higher supply.