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| This aerial photograph shows houses submerged with floodwater at Chak Ali Sher village in Wazirabad district of Punjab province, on August 28, 2025. — AFP |
Flood-hit India, Pakistan face rising basmati prices amid crop losses
Torrential rains and widespread flooding across the key basmati-growing regions of India and Pakistan have raised concerns about reduced output of the premium grain, driving prices higher on expectations of tighter supplies. Basmati rice, grown exclusively in both countries, commands nearly double the price of regular rice and is heavily exported to markets such as Britain, the Middle East, and the United States.
The recent floods have caused significant damage to standing crops, though experts suggest the overall losses could remain contained if there is no further heavy rainfall. “Floods have severely affected the basmati crop, but with waters now receding, losses are expected to remain limited provided there is no additional rainfall,” said Nitin Gupta, senior vice president at Olam Agri India.
India’s northern states of Punjab and Haryana, which account for over 80% of the country’s basmati production, were hit hard as rivers including the Ravi, Chenab, Sutlej, and Beas overflowed in late August and early September. In Pakistan, Punjab province—responsible for more than 90% of the nation’s basmati crop—also saw thousands of hectares of rice, sugarcane, corn, cotton, and vegetables submerged.
The flooding struck farmers just as basmati and cotton were nearing harvest. “Conservative estimates put the damage at 20% of basmati rice grown in Pakistan. This will definitely push prices higher in both local and international markets,” said Ibrahim Shafiq, export manager at Latif Rice Mills Pvt Ltd.
In both countries, paddy seedlings are typically transplanted in June and July, with harvest beginning in late September. This year, the industry had been expecting a bumper crop, but the damage now threatens to tighten supplies. Traders have already increased basmati prices by around $50 per ton in the past week, and further hikes are possible if shortages persist through harvest, according to Gupta.
Initial government assessments in India suggest that nearly one million hectares of crops, including paddy, cotton, and pulses, were affected in Punjab and Haryana. In Pakistan, similar devastation has disrupted the agricultural cycle at a crucial time.
Still, some industry officials believe the price surge may be short-lived. Karachi-based trader Chela Ram Kewlani noted that the current spike is largely driven by reports of crop damage and expects prices to stabilize once fresh supplies from the new harvest reach the market.