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Growth of the Indian Basmati Rice Market in the Arab World

Basmati Rice is grown in the Indo-Pak subcontinent and is considered the most preferred variety of rice consumed in nearly all parts of the Arab world.<br>https://www.amira.net/retailer/

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Growth of the Indian Basmati Rice Market in the Arab World

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  1. Growth of the Indian Basmati Rice Market in the Arab World • Basmatiriceis grownin theIndo-Paksubcontinentandisconsideredthe mostpreferredvarietyof riceconsumed innearlyallpartsoftheArab world. • Dueto thephenomenalgrowth in sales theIndian basmatimarkethasmoved frombeing justa commodity tobeingabrandedcommodity. • Indian basmaticontinues to enjoya robustgrowth in the Arabmarkets, especially in the traditionally non-basmatimarkets likeJordan,Lebanon, Egypt,Iraqetc.Thistrendislikelyto continue in thenextfewyearsand therebyoffers tremendousopportunities for therice traders in theregion. • Ricehas beena staplegrainin Arabcuisine forages. This istrue notonly fortheGulf Arab states,butalsofortheLevant (alsoknownas theEasternMediterranean)andother Arab markets. Theregionhasfulfilleditsneedsforricelargely fromtheIndo-Pak region,Egypt,and Thailand. Eachofthese ricegrowingregionsprovides rice ofdifferentvarieties withvarying propertiesandisthususedfordifferentdishes. Butthemostpopular varietyofrice consumed is thebasmatifromIndia/Pakistanbecauseofitsdistinctproperties.

  2. Someofthe commonproperties ofIndianbasmati rice are: • Non-sticky,fluffy,remains separateafter cooking • Elongates almostdoubleoncooking • Highvolume expansion • Possesses thenaturalfragrance(aroma) characteristic ofbasmati • Easily digestible Basmati rice isgrownintheIndo-Pak subcontinentandisconsideredthe mostpreferredvariety ofrice consumedinnearly allparts oftheArabworld.Itisusedformaking a numberofdishes thatare anintegralpartofArabcuisine.Also alargenumber ofthespicesusedinArabcuisine arealsothoseemphasizedinIndiancuisine. Thisis a resultofheavytrading andhistoricalties betweenthetworegions, andalsobecausemanySouthAsianexpats liveintheGulfArab states. Someofthe commonricedishesinthe Arabworldare Mandy,Bukhary,Kawazy,Zurbian, ChickenBiryani,MuttonBiryani, FishBiryani, VegetableBiryani,PulaoBiryani, andplainrice bothwhiteandSella(parboiled). AlthoughIndianbasmatiricehas beenthehotfavoriteofthe Arabs oftheGulfRegion,overthelastfew yearsweareseeing a phenomenalriseinthe consumptionofitintheLevantcountries.Thebelow chart elucidatesthis trendintheregion.

  3. One of the reasons for this changing trend is the return of a number of native people who have been living in the Gulf back to their home countries, these people have developed a taste for dishes like Biryani—for which basmati is the most suitable rice.The consumption of Indian basmati is also growing in the traditional basmati markets of the Gulf and Iran. This trend is likely to progress with the passage of time as people in the Arab world are likely to continue to patronize the Indian basmati rice and consumption continues to grow. Dueto the phenomenalgrowthinsales theIndianbasmatimarket hasmoved frombeingjusta commoditytobeing abrandedcommodity.There hasbeentheemergenceofaplethora of brands inthis categoryacross theArabworld.Tildawas the firstmoverinthisdirection. immediatelyafter the firstgulfwarin1991.Ithasbeenthedominantplayersince thendespite theentryofother brands likeIndiaGate,Dawat,Kohinoor,HimalyanCrown, IndianStar, Dunar, Radikal,andRaindroptonameafew. The entryofthese newbrandshas alsofragmentedtheIndianbasmatiricemarketwithmost players bringing inmorethanonevarietyofIndianbasmati.WhileTildawas sellingonlythe traditionalIndianbasmati, India Gatecameinto themarketwithanew variantcalled 1121 Indianbasmati.Whiletheformerofferedaroma as thekey productattribute,whichismost suitable forplain steamedriceand greenpeaspulao,thelatter offeredelongationpostcooking (2.2times theraw grain size) astheUSP(unique sellingpoint)—whichis verysuitableforall types ofBiryanis.

  4. sold in different forms with each country having its own market dynamic. While the lower gulf markets like the UAE, Oman, Qatar, Bahrain, and Kuwait are raw rice markets, the other markets like KSA (Kingdom of Saudi Arabia), Iraq, Yemen, Lebanon, Jordan, etc. are parboiledrice (also called Sella rice) markets. Parboiling is obtained by steam boiling the rice paddy before processing. This makes the cooking of various dishes like Mandi, Khabsah, etc. much easier. • Indian basmati continues to enjoy a robust growth in the Arab markets, especially in the traditionally non-basmati markets like Jordan, Lebanon, Egypt, Iraq etc. This trend is likely to • continue in the next few years and thereby offers tremendous opportunities for the rice traders in the region.

  5. For More Information:www.amira.netwww.amira.net/retailer/

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