1 Jul 2025
Basmati rice export prices have plunged to their lowest levels since 2008, even as export volumes remain robust. According to trade sources, exporters have managed to sustain earnings during the ongoing marketing year—beginning in October 2024—thanks to higher shipment volumes, despite a sharp fall in per-tonne prices and the removal of a minimum export price (MEP).
In May 2025, the average export price of basmati rice dropped by over 23% to $831 per tonne, compared to $1,080 a year earlier. The decline follows a season-opening drop of 20% in October 2024, which saw prices fall to $977 per tonne, down from $1,226 the previous year. Over the past eight months, prices have slipped a further 15%.
Historically, basmati prices reached a milestone in 2007–08, when the annual average surged over 53% to $907 per tonne, crossing the $1,000 mark for the first time in the following year. Since then, prices have seen modest fluctuations, with a notable peak in 2014–15, when they averaged over $1,220 per tonne.
Despite the price dip, basmati exports from October 2024 to April 2025 rose by 16% to 3.99 million tonnes (mt), compared to 3.43 mt during the same period last year, according to official data.
Industry experts suggest the current pricing scenario warrants a re-evaluation of India’s basmati export standards, which have remained largely unchanged for over 25 years. They pointed out that last year's surge in demand—driven by the Russia-Ukraine conflict—had pushed prices significantly higher. Although similar demand continues this year, the abundant kharif harvest in 2024 has led to oversupply, contributing to the ongoing price slide.
Some exporters have managed to secure better-than-average rates, but the overall trend remains bearish. The removal of the $950 per tonne MEP in September 2024, following industry appeals, has also played a role in driving prices lower.