BASMATI RICE: INDIA'S GIFT TO THE WHOLE WORLD

Introduction
Basmati, the unique aromatic quality rice is a natures gift to Indian sub-continent.
Epicureans acclaimed its delightful fragrance, taste and texture which makes it the best
among the aromatic rices of the world. It is cultivated on the foot hills of the Himalayas and
the whole ambience of the environment bestowing unique properties to this specialty rice.
Basmati rice is unique among other aromatic long grain rice varieties due to its delicious
taste, distinct flavour and superior aroma, which literally make it King of Rice. Indian
basmati rice market is likely to continue its upward journey on the back of mounting export
demand along with revival of domestic consumption demand. Shift in cultivator's interest
from non - basmati to basmati along with availability of high yielding varieties of basmati
rice in domestic market might embrace the spiral trend of domestic basmati production. India
produces more than 70% of the world basmati rice production and the rest is produced by
Pakistan. India's Basmati rice production has been sizzling from around 3 million tonne in
2008-09 to 4.5 million tonne in 2009-2010 seasons, and is estimated to have zoomed further
to 7.2 million tonnes in marketing year 2010-11. Haryana, Punjab, Himachal, Uttarakhand,
Delhi, Uttar Pradesh and J&K are the states where Basmati rice is grown in India. After
record surge for the past couple of years, the basmati rice production for 2011-12 is likely to
increase by 10-12% to reach around 7.90-8 million tonnes.
Varieties of Indian Basmati Rice
There are many varieties of Basmati rice grown in India. Under Section 5, Seed Act,
1966 of India has notified eleven varieties of Basmati Rice. This has helped the farmers in
having a varietal choice for cultivation and the rice industry to make available the rice to the
choice of the consumers. Numbers of varieties of Basmati rice are available in India and
Pakistan. But, India is the largest producer and exporter of Basmati rice in the world. Details
are given below.
1. Basmati 370
2. Basmati 386
3. Type 3

4. Taraori Basmati (HBC-19)

5. Basmati 217
6. Ranbir Basmati (IET-11348)
7. Pusa Basmati - I (IET-0364)
8. Punjab Basmati -1 (Bauni Basmati)
9. Haryana Basmati-1(HKR228/IET 10367)
10. Kasturi (IET-8580)
11. Mahi Sugandha
Basmati rice from the Indian sub-continent is highly priced in the international and
domestic markets for its unique quality. The traditional Basmati varieties are tall, prone to
lodging, photoperiod and thermo sensitive and very low yielding. Therefore, in order to
combine the quality attributes of traditional Basmati rice in high yielding background, a
systematic Basmati improvement programme was initiated by Dr. M.S. Swaminathan at the
Indian Agricultural Research Institute (IARI), New Delhi in the mid sixties.
World Scenario
In the international market rice is traded under two main categories such as Fragrant
and Non Fragrant. In case of fragrant rice, India dominates the trade with its Basmati Rice
followed by Pakistan. Basmati rice is the leading aromatic fine quality rice of the world trade
and it fetches good export price in the international markets. Basmati exports from India peak
during March-April period and the November-December period. Gulf region is the major
market for Indian basmati rice and inside Gulf, Saudi Arabia accounts for the major chunk of
basmati imports from India. European Union is the next important market for Indian basmati.
The EU buys roughly around 1-1.5 lakh tons of basmati rice on an average.
Saudi Arabia is the biggest importer of Indian basmati rice followed by UAE and
Kuwait. The US and the UK are the other major buyers of basmati rice from India. It is also
exported to other West Asian and European states. Iran is considered as the biggest buyer of
Pusa 1121, a rice variety which commands almost 50% of basmati exports from India. There
is great scope of increasing the consumption of basmati worldwide. This is possible by
identifying new potential markets and strategically promoting this unique variety. Despite
global food inflation, it is projected that basmati rice exports are likely to rise in the next
fiscal with new markets and the increasing global demand for premium rice.

Production of Basmati Rice in India

India is the largest producer and exporter of basmati rice in the world. The annual
production in the country hovers at around 10-15 lakh tons a year, of which around two-thirds
is exported and the remaining is consumed, within the country. India produces more than
70% of the worlds basmati rice and the rest is produced by Pakistan. Basmati supply has
increased at 17% in the last 10 years. In spite of the rapid increase in production on account
of increasing preference of farmers for basmati rice, the entire incremental produce was
consumed by the Gulf. There is still unsatisfied latent demand in other parts of the world.
The major paddy growing states of Punjab, Haryana and Uttar Pradesh, are likely to
see 20-25 percent decline in non-basmati rice production this kharif season on account of
decrease in the crop sowing area due to low rain and shift towards basmati rice.
Table 1.0 Area, Production and Yield of Basmati Rice in India
During the year 2001 to 2011
Area & Production, 000 Million Tonnes, Yield Per Hectare

S.No
1
2
3
4
5
6
7
8
9
10

Year
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011

Area
44.9
41.18
42.59
41.91
43.66
43.81
43.91
45.54
41.85
36.95

Production
93.34
71.82
88.53
83.13
91.79
93.36
96.69
99.18
89.13
80.41

Yield
2079
1744
2077
1984
2102
2131
2202
2178
470
2177

Source: Apeda

Table 1.0 reveals that the Area, Production and Yield level of Basmati rice in India
during the year 2001-02 to 2010-11. The area and production of basmati rice in India in 2001
onwards slightly decrease and few years slightly increased still 2009 and 2009. After 2009
the area and production is low to compare previous years because the global economic
slowdown and global economic crisis the reason for reducing the basmati rice production as
well as the global market demand.

Basmati Rice Producing States in India

India is the largest producer and exporter of basmati rice in the world. Basmati rice
means the "queen of fragrance" or the perfumed one. This type of rice has been grown in
the foothills of the Himalayas for thousands of years. In India, Basmati rice is characterized
by extra long, superfine slender grains having a length to breadth ratio of more than 3.5,
sweet taste, soft texture, delicate curvature and an extra elongation with least breadth-wise
swelling on cooking. This highly aromatic rice is India's gift to the whole world. India
produces more than 70% of the world basmati rice production during the year 2010 and 2011.
In India the major basmati rice producing states are Haryana, Punjab, Himachal, Uttarakhand,
Delhi, Uttar Pradesh and Jammu & Kashmir. After record surge for the past couple of years,
the basmati rice production for 2011-12 is likely to increase by 10-12% to reach around 7.908 million tonnes.

Table 2.0 State wise Area, Production and Yield of Basmati Rice in India during the year 2007-2008 to 2009-2010
Area And Production Trend (In lakh tonnes) and Hectares and productivity in quintals
2007-2008

2008-2009

2009-2010

State/Year

Area

Production

Yield

Area

Production

Yield

Area

Production

Yield

Punjab

392.2

395.86

42.93

392.85

1678.88

42.74

520.49

2191.79

42.110127

Haryana

190.7

793.85

41.63

187.41

606.43

32.36

393.37

453.99

11.541043

Uttar Pradesh

52.65

206.67

39.25

95

472

49.68

291.31

1153.09

39.582919

Uttarakhand

0.95

3.88

40.84

2.8

12.64

45.14

15.18

61.08

40.237154

41.61

678.06

2769.95

40.85

1220.35

3859.95

31.62986

Total
336.5
1400.26
Source: All India Rice Export Association

Table 2.0 reveals that the State wise Area, Production and Yield of Basmati rice in India during the year 2007 to 2010. In 2010-2011 the
total area under cultivation of Basmati rice in India is about 776000 hectares and the total estimated production is about 1196000 tonnes. The
largest basmati rice producing state is Haryana which contribute 60 per cent and the other major contributors are Punjab, Uttar Pradesh and
Uttarakhand. To increasing the area, production and yield of Basmati rice during the year 2007-2008 onwards, but in the year 2009-2010 is
increased in certain percentage of growth. In the national and international demand of Basmati rice consumption to increase in year by year, so
the Basmati rice producers to increase the area and to increase huge volume of production. According to agricultural statistical data reports to say
in recent years the non basmati rice producing farmers to switch over the Basmati rice production, because to increase the global demand and
to get the high profit of the harvesting.

Export of Basmati Rice from India

India is to play a major role exporting Basmati rice in recent years. According to an
official data in April-July 2010, India's basmati rice exports crossed 5.5 lakh tonne while
industry sources said exports were to the tune of 9.04 lakh tonne during the same period. The
contracted amount for exports till August was more than 1.15 million tonne showing a
picking up of exports by the end of the year, which is likely to be 15-20% more than last year.
The sharp gains were mainly due to crop damage in Pakistan. Indian rice export is expected
to reach around 2.65 million tonnes in 2010-11 against 2.20 million tonnes in

2009-2010.

While in 2011-12, traders are eying around 3 million tonnes of basmati exports.

Table 3.0 Export of Basmati Rice from India

during the year 2002 to 2010
Quanity in 000 tones, Value RS. In Crore

Year

Qty

Value

2001-2002

4156.87

3678.63

2002-2003

4259.08

3772.77

2003-2004

2640.57

2174.94

2004-2005

3615.10

3945.02

2005-2006

2921.60

3178.17

2006-2007

3704.85

4257.88

2007-2008

1456.52

4344

2008-2009

1675.58

9476

2009-2010

2245.17

12000

2010-2011*
Source: Apeda

2658.67

15000

Table 3.0 show that Export of Basmati rice from India during the year 2001 to 2011.
In the year 2001 to 2007 maximum quantity of basmati rice export from India, after 2007 the
export of basmati rice slumping down due to the global financial crisis and china and some
other countries not buy the Indian basmati rice in few years, but later now they are also open
the door to buy Indian basmati rice. So 2009 after that 2009 to still now India play a major
role in the global basmati rice market and Indian basmati rice get a high brand image in the
global standards. This is the reason India to lead Basmati export in past few years.

Table 4.0 Country wise major Export of Basmati Rice from India during the year 2007 to 20011
Qty in KG, Value in RS. Lakh

S.No

Country

2007-2008
Qty
Value

2008-09
Qty

2009-10
Value

Qty

2010-11
Value

Qty

Value

SAUDI ARABIA

5,43,530.24

2,03,834.60

52,44,01,672 3,10,280.84 64,04,04,411

3,29,547.41

57,35,42,154

2,90,117.35

UNITED ARAB
EMIRATES

1,93,102.03

68,983.28

45,61,46,513 2,78,620.50 61,61,25,134

3,09,465.31

61,11,65,470

2,72,561.61

KUWAIT

1,13,066.57

40,168.30

11,15,47,247

73,393.68

13,94,73,567

1,03,014.17

15,95,64,831

1,01,723.96

YEMEN REPUBLC

71,377.56

29,108.34

3,14,75,680

17,515.88

6,18,09,916

29,548.25

6,23,16,100

26,332.34

UNITED KINGDOM

49,958.53

13,715.18

6,25,63,102

43,103.89

3,69,66,433

19,589.45

7,15,16,563

32,340.75

UNITED STATES

35,738.68

14,210.11

3,96,25,126

27,259.70

2,59,22,133

15,349.93

4,21,52,170

22,213.67

JORDAN

13,565.22

5,754.19

38,54,390

2,446.57

92,35,900

4,990.28

2,33,09,756

10,255.04

IRAN

4,428.96

2,033.41

17,09,47,471

98,075.99

36,46,02,510

2,05,308.71

42,04,02,607

1,89,902.06

NETHERLAND

3,085.34

813.16

1,11,47,302

6,529.60

44,68,715

2,364.21

2,15,81,909

9,989.93

10

IRAQ

148.08

64.54

60,71,207

3,447.63

69,60,478

3,590.26

3,12,39,593

14,006.85

Source: Apeda

Table 4.0 reveals that the country wise export of basmati rice from India during the
year 2007 to 2011. India exports of basmati rice in various countries like Saudi Arabia,
United Arab Emirates, Kuwait, UK, USA, and Iran. Saudi Arabia is the biggest importer of
Indian basmati rice followed by UAE and Kuwait. The US and the UK are the other major
buyers of basmati rice from India. It is also exported to other West Asian and European states.
Iran is considered as the biggest buyer of Pusa 1121, a rice variety which commands almost
50% of basmati exports from India. There is great scope of increasing the consumption of
basmati worldwide. This is possible by identifying new potential markets and strategically
promoting this unique variety. Despite global food inflation, it is projected that basmati rice
exports are likely to rise in the next fiscal with new markets and the increasing global demand
for premium rice.

India's basmati rice export in 2011-12 may rise by 15-20percent on the year to around
3 million tonnes due to shortage of the grain. In medium term, demand for basmati will
continue to grow due to its preference over other rice varieties worldwide and insufficient
production. Also, domestic demand is set to grow by 15% annually due to increased spending
power of consumers. Increased demand from key importing countries like Saudi Arabia, Iran,
Kuwait and the UK coupled with inclusion on cheaper hybrid basmati varieties has boosted
India's export. The hybrid variety of basmati rice is relatively cheaper compared with the
traditional basmati rice and has gained acceptability in the export markets. India's basmati
rice exports have increased by an annual rate of 28% during 2007-08 to 2009-10, the report
said.
In India, normally around 70-80% of population is consuming non-basmati rice but
now we see significant change in consumption behaviour from non- basmati to basmati rice
in the domestic market. This is mainly due to introduction of branded and package basmati
rice in many retail outlets. India's growing middle class has augmented the domestic demand
of branded rice. Moreover, introduction of modern food retail formats has also propelled the
packaged food market, facilitating the availability, visibility and accessibility of branded
products. Many branded products players expecting that branded basmati rice sales might
grow at around 15 percent in the domestic market compared to five percent for unbranded
rice.

Factors affecting Basmati Rice Prices\

Weather has profound influence production and monsoon plays key role in its
production and productivity.
Since Basmati Rice has high export orientation, import demands from other countries
do affect price considerably.
Overall sentiments in the rice market do affect Basmati price trends.
Government export import policy.
Economic performance of importing countries and other fragrant rice from other
country to influence the market.
Domestic demand and consumption.
Ideas to improving the Basmati Rice Production
1. The government to the conduct research to introduce new high yielding varities of
basmati rice.
2. Government to induce the farmers and to identify the global market opportunities and
demand for the basmati rice cultivation.
3. Introducing new basmati rice cultivating patterns.
4. To identify the new basmati producing areas in India.
5. Farmers to producing high quality and most demanded variety of basmati rice
Conclusion
Rice is one of the most important food crop of India and 2nd of the world. It feeds
more than 50% of the world population. It is the staple food of most of the people of SouthEast Asia. Asia accounts for about 90 % and 91 % of worlds rice area and production
respectively. Among the rice growing countries, India having the largest area under rice in the
world and in case of production it is next to China. However, productivity of India is much
lower than that of Egypt, Japan, China, and Vietnam, USA & Indonesia and also the average
productivity of the world. It contributes 42 % of total food grains production and 45 % of the
total cereal production in the country. The US Department of Agriculture expects that
increase in the export demand for Indian basmati rice may be balanced by the expected
higher domestic supply due to increase in area and production during 2010-11. According to
India Rice Exporters Association, the carryover stock for current year is around 3 lakh tonnes
but for the next year it is estimated to be five times higher at 1.5 million tonnes. Pakistani, the
only competitor of India, is exporting approximately 80000 tonnes per month. Generally the
Indian Basmati rice market to get a high standard due the quality.