Basmati export prices have recently declined to a minimum export price (MEP) of $950/tonne from over $1,050, with some premium Basmati varieties dropping to about $1,200/tonne from $1,300. Despite this, Basmati rice exports increased by 12.3% to 4.11 million tonnes during the January 2023-24 fiscal, up from 3.66 million tonnes in the previous year, with the value of exports rising 20.2% to $4.59 billion from $3.82 billion. This growth is largely due to increased demand from countries like Saudi Arabia and Iraq. The average export realisation until January was about $1,120/tonne, compared to nearly $1,045 the year before. In Punjab, the prices for various Basmati paddy varieties ranged from ₹3,200-3,600/quintal for Pusa Basmati 1509 to ₹6,300-₹6,600/quintal for traditional Basmati CSR 30 in November 2023. Despite a slowdown in demand from overseas buyers due to increased freight costs, industry experts expect the market to normalize soon. The current decline in Basmati export prices is viewed as a normal market trend influenced by demand-supply issues, with over 90% of the fiscal year's shipments already completed, following a similar growth trend.
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