The rising global demand for premium Basmati rice: Opportunities for Indian exporters
Basmati rice, known for its long grains, delicate fragrance, and distinctive flavour, is experiencing a surge in global demand, especially in its premium forms. According to industry reports, the Basmati rice market size is estimated to reach $31.6 billion by 2027, growing at a CAGR of 9.1 per cent over the forecast period of 2022-2027. This growth is being fueled by increasing global interest in healthy, high-quality grains and a rising preference for traditional and specialty rice varieties in Western markets. For Indian exporters, this upward trajectory presents a golden opportunity to tap into evolving consumer preferences and reaffirm India’s position as the world’s leading supplier of basmati rice.
A premium staple going global
Traditionally a staple in South Asian households, basmati rice has now made its way into mainstream diets across the globe, from gourmet kitchens in Europe to health-conscious homes in North America. Factors like growing awareness of ethnic cuisines, rising disposable incomes, and an increasing inclination toward natural and organic food products are driving this shift.
Premium basmati rice, often aged for enhanced texture and flavour, also appeals to wellness-focused consumers due to its low glycemic index, gluten-free composition, and rich nutrient profile. As more consumers seek food that offers both taste and health benefits, basmati rice is emerging as a preferred alternative to regular long-grain and processed white rice.
India’s leadership in the Basmati landscape
As of recent data, India accounts for over 70 per cent of global basmati rice exports, with major markets including Iran, Saudi Arabia, the UAE, the United Kingdom, and the United States. In FY 2023–24, India exported more than 5.24 million tonnes of basmati rice, compared to 3.94 million tonnes in FY 2021–22. This shows a 14.93 per cent increase in the amount exported and a 22.05 per cent rise in the value of exports. Basmati rice also made up 1.34 per cent of India’s total exports, highlighting its growing global demand and India’s strong position as a leading producer and exporter.
What gives Indian exporters a competitive edge is a robust supply chain, superior milling infrastructure, favorable climatic conditions in basmati-producing regions, and the Geographical Indication (GI) status that protects its authenticity and heritage. Moreover, the Agricultural and Processed Food Products Export Development Authority (APEDA) ensures strict adherence to global quality standards, further reinforcing buyer confidence.
Market expansion and trade leverage
Trade agreements such as the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and proposed Free Trade Agreements (FTAs) with the European Union and other nations are expected to ease market access, reduce tariffs, and improve export competitiveness. Additionally, Indian companies are increasingly leveraging digital platforms and e-commerce to reach global consumers directly. With a rising diaspora population and growing international interest in Indian cuisine, Indian exporters are well-positioned to cater to both ethnic and mainstream markets.
Challenges that require strategic response
Despite the optimism, certain hurdles must be addressed. Price volatility in the global market, changing pesticide regulations (especially in the EU), and climate-related disruptions in rice-growing regions can impact supply consistency and profitability. India also faces stiff competition from Pakistan, which exports a similar variety of basmati rice. Therefore, maintaining superior quality, traceability, and brand distinction is critical for sustaining India’s leadership position.
To capitalise on the growing global appetite for premium basmati rice, Indian exporters should focus on strategic initiatives such as brand building, where basmati is positioned not merely as a grain but as a symbol of Indian heritage and culinary excellence. Product innovation is also key, introducing convenient, nutritious, and diverse rice-based products that cater to evolving consumer needs. Additionally, market diversification beyond the traditional buyers in the Middle East and the UK into Africa, Southeast Asia, and Latin America will be crucial in spreading risk and unlocking new growth.
The author is Joint Managing Director, DRRK Foods
Published on May 10, 2025
