The rise in rice prices is once again putting pressure on household budgets. A significant increase in prices has been observed for both basmati and non-basmati rice. According to a report by The Economic Times, the increase in global demand is driven by many countries actively purchasing rice to ensure food security amid the conflict between the US and Iran.
Furthermore, the decrease in rainfall in South India has intensified pressure on the domestic market. In the first quarter of the 2026-27 fiscal year, the price of basmati rice rose by 15-20% compared to the same period last year, while non-basmati rice increased by 20-25%. Traders and exporters predict that prices will remain high until the new harvest arrives in October-November, reducing consumer hopes for a quick relief.
According to reports, rice from India is being actively purchased by Gulf countries. The rise in demand has also affected basmati rice, which is widely used in dishes such as biryani. In the first quarter of the 2026-27 fiscal year, the price of basmati rice reached about 100 rupees per kilogram, whereas last year it was around 85 rupees per kilogram. Prices for non-basmati rice have risen similarly; for example, Sona Masuri rice, which cost 51-52 rupees per kilogram last year, is now selling for 63-64 rupees per kilogram. In the near future, prices are not expected to fall due to high demand and limited supply in the market.
In the 2025-26 fiscal year, India exported a record 6.52 million tonnes of basmati rice to 154 countries. Saudi Arabia remains the largest buyer of Indian rice, and demand is also coming from West Asia. However, the speed of rice shipment batches has slowed down due to payment and transportation issues in the Persian Gulf region. This has not reduced demand but only increased deferred demand due to delivery delays.
Government procurement and uneven rainfall also influence the domestic market. B V Krishna Rao, Chairman of the Rice Exporters Association, noted that the rise in rice prices is also due to government purchases for the public distribution system. In the state of Telangana, the government provides non-basmati rice through the PDS system. Additionally, low rainfall levels in Andhra Pradesh, Karnataka, and Telangana have contributed to maintaining high prices.