With the average realizations in Basmati rice per kg steadily increasing, it’s reaching a high point where it was close to 10 years ago.
over the past year the value of basmati rice exports has been steadily increasing too, which are good signs for this space.
Unfortunately with floods in Pakistan, there might be an opportunity for India to grasp some market share in the near term.I had come across this document that shared the market size b/w the two countries. source: link
A few interesting points to note from this document in regards to Basmati:
- The top importing markets for Pakistan’s Basmati include UAE, Kazakhstan, KSA, Oman, Kenya
and Somalia. - Pakistan and India are the top producers of Basmati. They together account for 90% of total
exports. In 2021, 0.737 million tons of Basmati rice was exported to UAE, Saudi Arabia, Oman,
Yemen, China, UK, Kazakhstan, USA and Kenya at an average price of $900/ton. Pakistan still
had a surplus quantity of 0.84 million tons. - The top importing markets for Basmati rice in the world include European Union, Middle East,
KSA, Iran, USA, UK, Belgium, Yemen, Spain, Italy and Qatar. - Price trends over the past 5 years:
5. Pakistan’s market share in UAE has also squeezed as compared to pre-pandemic era. Pakistan’s share in Kazakhastan, Kenya, Somalia, and Italy is increasing. These markets are promising for Pakistan as India has not captured these markets as of yet. < Opportunity for indian players to grab some short term opportunity here >
- Overall market:
disc: Invested as a techno funda bet, no trades in the last 30 days. (https://invst.ly/z2muh)
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