Flooding in key Basmati Price-producing regions of India and Pakistan slashes crop yields and triggers a rapid spike in prices, threatening both local food security and global export markets.
Heavy monsoon rains and severe flooding across major Basmati Price rice-growing zones in India and Pakistan have raised the alarm on crop damage and food inflation. India’s Punjab and Haryana—responsible for over 80% of its basmati output—and Pakistan’s Punjab province, which accounts for more than 90% of its production, were particularly hard-hit as swollen rivers spilled into farmlands.Reuters
Early estimates reveal nearly one million hectares of farmland in India’s northern plains and thousands more in Pakistan have suffered flood-related damage. In Pakistan, initial forecasts point to crop losses nearing 20%, compounding the pressure.Reuters
The floods are already reverberating through markets: industry reports indicate basmati prices have surged by approximately $50 per ton in local and international trading. Further price hikes are expected if the harvest outlook worsens.Reuters
While some analysts say the current price jump may stabilize with the arrival of the fresh harvest, the widespread disruption could continue influencing export flows and domestic availability.Reuters
Summary
- Impact scope: Floods have ravaged key basmati-producing zones in both countries.
- Production hit: Estimated crop losses reaching up to 20%.
- Market effect: Prices have already risen by $50 per ton, with potential for more increases.
- Outlook: Price relief may depend on the next season’s harvest, but current inflation risks remain high.
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