India Cuts Minimum Export Price for Basmati Rice to $950 per Tonne
Decrease in basmati rice export floor price comes after trader complaints about uncompetitive market conditions and slowing shipments, aiming to rejuvenate trade and regain market share from Pakistan.
- The Union government of India has reduced the minimum export price (MEP) of basmati rice from $1,200 per tonne to $950, in response to trader complaints that the previous floor price was uncompetitive and hindering exports.
- The reduction comes after a halt in overseas shipments by a leading exporters' body, citing the high floor price as a challenge to compete, particularly against Pakistan, another major exporter of the premium rice variety.
- The initial floor price was implemented in August to stabilize domestic prices, which led to a significant slowdown in shipments and protests by farmers and exporters.
- India exports more than 4 million tonnes of basmati rice annually to various countries such as Saudi Arabia, the United Arab Emirates, Iraq, Iran, and the United States. The decrease in MEP is expected to reinvigorate this trade.
- Despite the reduction in MEP for basmati rice, the Indian government continues to impose export restrictions on other varieties of rice, such as white non-basmati rice, to keep a check on local prices.
Reuters 
