Growth of the Indian Basmati Rice Market in the Arab World

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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.
• Due to the phenomenal growth in sales the Indian
  basmati market has moved from being just a
  commodity to being a branded commodity.
• 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.
• Rice has been a staple grain in Arab cuisine for
  ages. This is true not only for the Gulf Arab
  states, but also for the Levant (also known as
  the Eastern Mediterranean) and other Arab
  markets. The region has fulfilled its needs for
  rice largely from the Indo-Pak region, Egypt, and
  Thailand. Each of these rice growing regions
  provides rice of different varieties with varying
  properties and is thus used for different dishes.
  But the most popular variety of rice consumed is
  the basmati from India/Pakistan because of its
  distinct properties.

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• Some of the common properties of Indian basmati
  rice are
• Non-sticky, fluffy, remains separate after
  cooking
• Elongates almost double on cooking
• High volume expansion
• Possesses the natural fragrance (aroma)
  characteristic of basmati
• Easily digestible
• 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. It is used for making a number of
  dishes that are an integral part of Arab cuisine.
  Also a large number of the spices used in Arab
  cuisine are also those emphasized in Indian
  cuisine. This is a result of heavy trading and
  historical ties between the two regions, and also
  because many South Asian expats live in the Gulf
  Arab states.
• Some of the common rice dishes in the Arab world
  are Mandy, Bukhary, Kawazy, Zurbian, Chicken
  Biryani, Mutton Biryani, Fish Biryani, Vegetable
  Biryani, Pulao Biryani, and plain rice both white
  and Sella (parboiled). Although Indian basmati
  rice has been the hot favorite of the Arabs of
  the Gulf Region, over the last few years we are
  seeing a phenomenal rise in the consumption of it
  in the Levant countries. The below chart
  elucidates this trend in the region.

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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 Biryanifor 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.

• Due to the phenomenal growth in sales the Indian
  basmati market has moved from being just a
  commodity to being a branded commodity. There has
  been the emergence of a plethora of brands in
  this category across the Arab world. Tilda was
  the first mover in this direction. immediately
  after the first gulf war in 1991. It has been the
  dominant player since then despite the entry of
  other brands like India Gate, Dawat, Kohinoor,
  Himalyan Crown, Indian Star, Dunar, Radikal, and
  Raindrop to name a few. The entry of these new
  brands has also fragmented the Indian basmati
  rice market with most players bringing in more
  than one variety of Indian basmati. While Tilda
  was selling only the traditional Indian basmati,
  India Gate came into the market with a new
  variant called 1121 Indian basmati. While the
  former offered aroma as the key product
  attribute, which is most suitable for plain
  steamed rice and green peas pulao, the latter
  offered elongation post cooking (2.2 times the
  raw grain size) as the USP (unique selling
  point)which is very suitable for all types of
  Biryanis.

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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.

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