Indian Rice Prices High Due to Strong Demand from Importing Nations

15-Sep-2026 03:43 PM

New Delhi. With no signs of easing tensions between the US and Iran, various nations are becoming concerned about their food security. Countries in the Gulf region are showing increased interest in purchasing rice.

Prices are trending upwards due to robust global demand for Indian rice. Compared to the previous year, the first quarter of the current fiscal year (April–June 2026) saw a significant price hike: 15–20% for Basmati rice and 20–25% for common (non-Basmati) rice. Paddy production in South India is likely to decline due to reduced rainfall and a smaller area under cultivation. There are also apprehensions regarding a drop in paddy and rice production in South and Southeast Asian countries due to the impact of El Niño.

Rice prices are expected to remain high and firm until the arrival of the new paddy crop in October–November. Prices for various rice varieties and categories have also risen in the global market in recent weeks. According to a leading trade analyst, importing nations are making concerted efforts to ensure food security, leading to aggressive procurement—particularly of rice and wheat.

Countries in West Asia, the Middle East, and the Gulf region are purchasing large quantities of rice from India. The average market price of Basmati rice rose from ₹85 per kg in April–June 2025 to around ₹100 per kg in April–June 2026. Basmati rice export performance remained steady.

Prices of non-Basmati rice have also surged. The price of Sona Masuri rice has increased from ₹51–52 per kg to ₹63–64 per kg. Stocks of old-crop rice are running low, while the supply of new-crop rice is still some time away. The outlook on the export front remains positive.