Performance of India’s Basmati Rice Exports: Growth, Instability and Share Analysis

Abstract

India's agriculture sector is a significant contributor to the country's economy, with agricultural commodities forming a substantial part of its export basket. Basmati rice, in particular, is a major export earner, with India holding a dominant position in the global market due to its superior quality and strong demand. This study aims to examine the growth and instability in the export of basmati rice and assess its share in total agricultural trade. The scope emphasises post-WTO trends, highlighting the influence of productivity, cost structure, domestic policies, global demand, logistics and environmental conditions on India’s agricultural trade performance. The methodology was designed to provide a comprehensive assessment of trade performance. Secondary data for 22 years (2000-01 to 2021-22) were analysed using Compound Growth Rates (CGR), Coefficient of Variation (CV) and Cuddy-Della Valle Instability Index (CDVI) to measure growth and instability. Periodic analysis was performed across three intervals as Period I (2000-01 to 2010-11), Period II (2011-12 to 2021-22) and the overall/entire period (2000-01 to 2021-22) to capture temporal changes.  The analysis of basmati rice export values at current prices revealed notable trends in growth and volatility across distinct periods. In conclusion, the analysis of rice export data revealed growth in rice export quantity and values, both at current and constant prices, under the conditions of significant volatility. The growth in rice export quantity was attributed to strong demand for basmati rice in international markets and comfortable production in the country.