Heavy rain and widespread flood in major basmati rice growing regions of India and Pakistan have now raised concerns over the basmati rice price in these two regions. Further the rains have also raised questions over the output of the premium staple.
Notably, Indian and Pakistan exclusively grow aromatic basmati rice which is supplied across the globe. The aromatic basmati rice grown in these two regions are sold for nearly twice the price of regular varieties and is primarily imported by Britain, the Middle East, and the United States.
India, Pakistan Face Rising Basmati Rice Price Amid Crop Losses
Floods have affected the paddy crop, however with water levels now receding, losses are expected to remain limited provided there is no additional loses due to rainfalls as quoted by the senior vice president of Olam Agri India.
Northen states of India, Punjab and Haryana contribute over 80% of the country’s total basmati rice production, whereas Pakistan’s Punjab province accounts for more than 90% of its total output. Heavy rainfall in August and earlier in this month caused important rivers the Ravi, Chenab, Sutlej, and Beas rivers to overflow, flooding these regions. Initial assessments by experts indicate that major crops such as paddy, cotton, and pulses are among the most affected crops and nearly one million hectares so far have been affected in Punjab and Haryana. Another major cultivator of aromatic basmati rice Pakistan’s Punjab province is also affected by the widespread rain and flood submerging rice, sugarcane, corn, vegetables, and cotton on thousands of hectares. With harvesting of paddy crop starting in late September in India and Pakistan floods have hit the farmers hard.
Rise in Basmati Rice Price is Temporary
As quoted by industry officials including, Karachi-based Chela Ram Kewlani, the current rise in basmati rice price is temporary and is fuelled by reports of crop damage. The price will ease once supply from new harvest season arrives in market.