India Aims to Boost Basmati Rice Exports to Vietnam, Indonesia, and the Philippines

With growth in basmati exports slowing, the Indian government is preparing to send a delegation to Vietnam, Indonesia, and the Philippines in the coming months, as per news reports. These countries, though major rice producers themselves, are being targeted to widen the demand base for India’s long-grain basmati rice.

Current Export 

India exported basmati worth $5.9 billion in FY25, recording a 1.73% year-on-year increase. This was a sharp drop from the 22.05% growth seen in the previous year. Price restrictions and increased competition impacted the overall export value during the period.

In October 2023, India reduced the minimum export price (MEP) for basmati from $1,200 to $950 per tonne. The MEP was eventually removed in September 2024. Exporters had earlier reduced prices to stay competitive and access new markets during the restriction period.

Low Exports to Target Nations

Shipments of basmati to Vietnam, Indonesia, and the Philippines were valued at only $15.27 million in FY25. These markets have traditionally consumed short-grain or sticky rice, with Vietnam also being a major exporter and supplier to Indonesia and the Philippines.

India is the world’s top exporter of basmati and the second-largest rice producer, holding a 25% global share. Within the country, Punjab accounts for 42.7% of total basmati production, followed by Haryana and Uttar Pradesh.

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Market Expansion

The planned outreach is aimed at introducing basmati rice in countries that do not traditionally consume it. The goal is not to replace local varieties but to increase exposure and create a new consumer base in these regions.

Conclusion

India is shifting focus to non-traditional markets like Vietnam, Indonesia, and the Philippines to support its slowing basmati export growth. These efforts are part of a broader plan to stabilise prices and reduce dependence on existing buyers.

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