Floods Dampen Basmati Dreams: Rice Prices Surge Amid Crop Challenges
Heavy rains and flooding in India and Pakistan's basmati-growing regions have disrupted production, leading to surging rice prices. Despite the receding water levels, around 20% of Pakistan's crop is damaged. Producers anticipate price increases, though new harvest supplies may soon offer relief.
Recent heavy rains and extensive flooding in India and Pakistan's basmati rice-cultivating areas have caused worries about production shortfalls, driving prices upward amid anticipated supply reductions.
India and Pakistan are the exclusive producers of the fragrant basmati rice, a staple that commands nearly double the price of ordinary varieties and is largely imported by Britain, the Middle East, and the United States. While floods have substantially impacted the basmati rice crop, with receding waters, losses are expected to be limited if further rainfall does not occur, according to Nitin Gupta of Olam Agri India.
Punjab and Haryana in India contribute over 80% of their national basmati output, while Pakistan's Punjab produces more than 90% of its basmati. Late August and early September rains caused river overflows, flooding these critical agricultural zones. Initial assessments report substantial damage to various crops, including a significant impact on rice and cotton harvests. The industry, previously hopeful for a bumper crop, now faces supply diminutions and looming price hikes.
(With inputs from agencies.)
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