Latest reports indicate that Basmati Rice global consumption is expected to witness significant growth, by 2023 the consumption is estimated to be 17613.7.9 K MT! Analysts have also revealed that the Packaged Basmati Rice market will also continue to boom, rice being the third most consumed staple around the world.
The global Basmati Rice market is valued at USD 10,290 million in 2020 and is expected to reach USD 18,320 million by the end of 2026, growing at a CAGR of 8.5% during 2021-2026. Prices will maintain the slow downward trend that has been present in recent years.
Basmati grains contain about 0.09 ppm of this aromatic chemical compound naturally, a level that is about 12 times more than non-basmati rice varieties, giving basmati its distinctive spicy fragrance and flavour. This natural aroma is also found in cheese, fruits and other cereals. It is a flavoring agent approved in the United States and Europe, and is used in bakery products for aroma.
Australia faces shortage
Australia is facing a rice shortage with the country predicted to run out of the domestically-grown product by the end of the year. Low rainfall, dry weather and COVID-19 panic buying have all been linked to the diminishing stock. SunRice, the country’s biggest rice supplier, has lost more than $400million in exports.
98 per cent of Australias rice is grown in southern NSW, which is at risk of collapse with the last two years of zero water allocations.
Pakistan Farmers call for protecting Basmati rice
Farmers have urged the government to take prompt measures for the protection and promotion of Basmati rice in and outside of Pakistan and also at all international forums.
They argue that their basmati rice fully qualifies and deserves the geographical indication (GI) tag, and the trademark of basmati belongs to Pakistan, which is an ongoing issue with India.
Indian basmati rice severely impacted
There has been a marked increase in export orders despite the lockdown when it comes to this sector. Some attribute it to the slow resurgence in the restaurant industry after the relaxation of the lockdown. However, some mention there may be an impact due to issues with Iran which is one of the major importers of the two commodities. Delayed payments from Iran on the back of the “depleting balance” in the rupee-rial trade account is the problem.
Iran is one of the major importers of basmati rice accounting for nearly a third of India’s total exports of the commodity. Ever since the US imposed sanctions on Iran, India could not engage in dollar-denominated trade with the country.
Basmati rice exporters from India are renegotiating with importers from Australia, Canada, and western Europe. The new contracts are to be signed this month after overseas cargo rates climbed aproximately 50% over the past month.
India vs. Pakistan: Basmati Battle at the European Union
Basmati is grown in various parts of India as a special long grain aromatic rice. It is raised and produced in a particular geographical region of the Indian sub-continent, below the foothills of the Himalayas. The area is a part in northern India, below the foothills of the Himalayas forming a part of the Indo-Gangetic Plains (IGP).” Since India has already applied for the GI tag of Basmati rice , it will have the sole ownership if Pakistan’s opposition fails.
Kenya’s bounty harvest
Rice farmers in Mwea, Kirinyaga County are celebrating a bounty harvest thanks to the ratoon training program launched by Yara East Africa in June with rice farmers in Mwea County to help boost rice quality and good yields. Good fertilizer with the needed nutrients provides for good yields and profit for the farmers. They are celebrating the success they have seen since the launch of good seeding and processing of rice in June this year which has seen farmer yields increase by 27 %.
70% of rice is grown in the Mwea County, where many smallholder farming families are realizing harvests on farmlands once considered too poor to cultivate, to contribute to the country’s social and economic growth. Since they lacked the requisite farm machinery such as tractors to till the land, they engaged manual labour to prepare the farm into sizable plots which were then leveled to allow for holding of water.
Tradelinks Sourcing
With over 10 years sourcing premium quality Rice from the best farms around the world, our Quality Assurance team have their boots on the ground supervising the whole process, starting from the paddy fields, throughout the milling up until loading the shipping containers. Our Quality Control starts with implementing procedures in the paddy, which is tested for processing suitability, following through to the state of the art milling process which ensure de-stoning, polishing, grading and color sorting that will guarantee the end product meets the buyers specification and set parameters.
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