India’s Basmati rice production is likely to fall this year on nearly 4 per cent drop in acreage, mainly in west Uttar Pradesh and Haryana. This will potentially help exporters to demand better rates from overseas buyers amid the on-going tension in the West Asian countries, which is the key market for the Indian aromatic rice. Last year, the domestic production was about 10 million tonnes (mt).
According to industry sources, the acreage under Basmati crop is about 1 lakh hectare (lh) lower than 24.9 lh in 2025. The only positive aspect is the area in Punjab, where the acreage remains the same as last year, sources said. The production in the northern State may be higher compared with last year, when the crop was damaged by heavy rain and floods.
However, since the Basmati area was estimated at about 27.5 lh in 2024, the fall in acreage for the second consecutive year is likely to impact its prices this year.
Low in non-GI States too
Basmati is also grown in some non-GI (Geographical Indications) states like Madhya Pradesh where the acreage is lower due to deficient rainfall. Overall rice (both Basmati and non-Basmati) acreage in Madhya Pradesh was 1.75 lh less (as on September 4) from year-ago. In 2025 Kharif, the rice acreage was 42.10 lh in Madhya Pradesh, official data show. Industry estimates put Basmati area at 6-7 lh in the state and the entire fall (in rice acreage) this year said to be in Basmati alone.
In 2025-26, India exported 6.52 mt worth $ 5.67 billion of Basmati rice with an average realisation of nearly $870/tonne. During April-June of current fiscal, exports have been reported at 1.54 mt worth $ 1.44 billion and value realisation at about $938/tonne, according to APEDA data.
Global prices up
In Karnal, Haryana, farmers have started bringing Pusa 1509 variety Basmati, which arrives first due to shorter duration than other varieties, and currently it is selling at Rs 3,950/quintal. Traders said that the Basmati crop from both local as well as from neighbouring Shamli district (Uttar Pradesh) is in good demand since the area under the premium Pusa 1121 is said to be lower and there is expectation of further increase in prices.
Currently, Indian basmati is quoted at $1,160 a tonne. Prices are up 15-20 per cent compared with last year.