Rice prices are shooting through the roof right now. Global demand and poor rainfall in South India have pushed both Basmati and non-Basmati rates up. Traders say you will not see any price drop until the new harvest arrives in October. Record exports and a tight domestic supply are making things worse for the common man.
Rice prices are hitting the common man hard. Both Basmati and non-Basmati varieties are currently burning a hole in the pocket. Countries around the world are rushing to ensure food security because of the US-Iran tensions, and this has suddenly spiked the global demand for rice. Poor rainfall in South India has also hit the domestic market badly. Because of this high demand, the Basmati rice we use for biryani has crossed Rs 100 per kg. Last year around this time, it was just Rs 85 per kg.
No relief until October
Basmati rice prices have jumped by 15 to 20 percent in the first quarter of this financial year compared to last year. Non-Basmati rice prices have also gone up by 20 to 25 percent. Traders and exporters clearly say that prices will not come down until the new harvest arrives in October and November. This means buyers will not get any relief in the coming months.
Indian Basmati floods the Gulf
The boom in the export market is heavily influencing Basmati prices. Indian Basmati has massive demand abroad. India exported a record 6.52 million tonnes of rice to 154 countries in the last financial year. Saudi Arabia buys the most rice from us. There are some minor shipping delays right now because of payment and transit issues in the Gulf corridor, but the demand remains huge.
Domestic market crisis
The 2025 harvest sold out much faster than anyone expected. Stocks are running very low until the new crop comes in October. This domestic shortage is driving up prices even more than the exports. The Rice Exporters Association says that massive government procurement for the Public Distribution System has caused this inflation. The government distributes non-Basmati rice through rations in Telangana. On top of this, the lack of rain in Andhra Pradesh, Karnataka, and Telangana has made the crisis much worse.
The market experts believe that prices will not drop anytime soon, as the new Kharif harvest is still weeks away. Rates will only change when the new crop hits the market, rainfall improves, and foreign buying slows down.