Project report for Basmati Rice Cultivation

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Rice is the most important cereal food crop of India, occupying one-fourth of the gross cropped area of the country. As the basic food crop, rice is cultivated comfortably in a hot and humid climate. There is a vast scope for the supply of organic Basmati rice in the international market. India accounts for a lion’s share of Basmati rice exports and credit goes to Haryana. More than 85% of the global Basmati exports are from India.  Haryana contributes 7% of India's agricultural exports and 60% of India's Basmati rice export. Basmati Rice means the rice varieties possessing aroma and gives pleasant flavour and get doubled in length after cooking. In India Basmati rice is characterized by extra-long, superfine slender grains having a length to breadth ratio of more than 3.5, with sweet taste and soft texture.   The Basmati rice is also stated to be the Pearl of Rice. Basmati Rice possess a great potential as an export material as well, its higher yield may help in shaping our deformed economy during COVID-19 disaster periods. The strengthening exports is a combined result of an increasing demand from Iran and the rise in prices that have been taking place over the last three years. Haryana, Punjab, Himachal Pradesh, Uttarakhand, Uttar Pradesh, Jammu and Kashmir, and Delhi are the major basmati rice producing states in India. In Pakistan, the Punjab province is the largest producer of the paddy crop.

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Market potential & Strategy

The basmati rice market is being aided by the rising export demand for rice, globally. Basmati rice accounts for 2.1% of the total rice production. In 2020, the global production of rice reached almost 497.76 million metric tons. While rice is consumed as a staple food across world regions, demand for specialty rice is increasing exponentially following the growing appetite for aromatic rice. Basmati rice is majorly preferred to consume on various occasions and ceremonies including marriages, Eid, and house & corporate parties. Thus, consumption of basmati rice on occasions is considered to major driver for the market growth.  Furthermore, a sizeable export of basmati rice across the world has generated the need for a stronger supply chain to establish a fair outcome benefiting all the supply chain participants starting from farmers to the consumers. The rising population is also acting as a catalyst for the growth of the basmati rice market. The increasing disposable income in the major consuming nations is driving the market growth. The rising disposable income is leading to increased consumption of premium products and, thus, is providing further impetus for the global basmati rice market growth as basmati rice is perceived as a premium variety. With the increasing health consciousness among the consumers, the basmati variety is being increasingly preferred due to being rich in nutritional value and having a lower fat content.

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