Basmati exports to UK to touch 2.5 lakh metric tonnes

By Admin

26 Jul, 2025

India's Basmati rice exports to the United Kingdom are poised for a significant leap, thanks to the landmark India-UK Comprehensive Economic and Trade Agreement (CETA) signed in London in the presence of Prime Minister Narendra Modi and his UK counterpart Keir Starmer. The pact is expected to uplift India’s agri-export sector, particularly benefiting farmers in Punjab the country’s leading Basmati-producing state.

Customs Duty Removed on Brown Rice

A key provision under the CETA is the removal of customs duty on brown rice, which is expected to elevate India’s Basmati shipments to the UK from the current 1.85 lakh metric tonnes (MT) to 2.5 lakh MT annually. Given that the UK imports nearly 3 lakh MT of Basmati rice every year, this policy shift is a game-changer for Indian exporters, who have long faced tariff disadvantages compared to competitors like Pakistan.

Level Playing Field for Indian Exporters

“This agreement opens up vast opportunities,” said Ranjit Singh Jossan, Vice-President of the Basmati Rice Millers and Exporters Association of India. He pointed out that until now, India had a 55% market share, while Pakistan held 44%, largely due to lower pesticide residue levels and its historic Basmati rice appeal. The new deal levels the field, paving the way for India to consolidate its position as a global leader in Basmati exports.

Steady Growth in Exports

India’s Basmati exports to the UK have shown a consistent upward trend:

• 2021–22: 1.29 lakh MT
  
  

• 2022–23: 1.43 lakh MT
  
  

• 2023–24: 1.85 lakh MT
  
  

In comparison, Pakistan exported 1.09 lakh MT in the latest year. The CETA covers all GI-tagged Basmati varieties, including the popular 1121 and Pusa 1401 grown in Punjab, Haryana, and Madhya Pradesh.

Punjab to Reap the Most Benefits

Punjab, accounting for nearly 40% of India’s total Basmati production, is expected to be among the biggest beneficiaries. In 2022, India’s Basmati exports were valued at ₹48,000 crore, with Punjab contributing a lion’s share. The UK also acts as a strategic entry point to the broader European market, enhancing India’s export potential beyond just Britain.

MSMEs and Rural Economy Get a Push

Jossan emphasized that duty-free access will boost MSMEs, farm incomes, and rural development. He also highlighted steps taken to address quality concerns: “Punjab has banned harmful pesticides over the last three years. Haryana is progressing too. Awareness among farmers is rising, and quality is improving.”

Milled Rice Left Out of the Pact

However, there’s a note of disappointment over the exclusion of semi-milled and wholly milled rice (HSN Code 1006:30) from the duty-free list. Exporters have long sought its inclusion, but with no progress on that front, opportunities in this category remain limited.

Broader Impact of CETA

Nearly 95% of India’s agricultural exports to the UK such as millets, cotton, groundnuts, fruits, vegetables, onions, spices, pickles, tea, and coffee will now be duty-free under CETA. Together, agriculture and food processing make up 25.4% of the total value of agreed goods under the pact.

In 2023–24, India exported 59.42 lakh MT of Basmati rice, with major buyers being:

• Saudi Arabia: 11 LMT
  
  

• Iraq: 8 LMT
  
  

• Iran: 7 LMT
  
  

• Yemen: 3 LMT
  
  

• USA: 3 LMT
  
  

Future Outlook

With tariff barriers removed, quality controls improving, and policy support intensifying, Indian exporters are confident of a stronger presence in premium markets like the UK. This progress aligns with India’s vision of ‘Make in India’ and ‘Vocal for Local’, boosting not only exports but also global recognition of India’s traditional rice varieties.