Global Rice News

The Indian government is considering reducing the Minimum Export Price (MEP) for basmati rice in order to make rice more affordable for domestic consumers and to help farmers obtain better prices, according to sources familiar with the matter. The current MEP is $1,200 per tonne, but the proposed reduction could bring it down to $850 per tonne.

An interministerial committee will make the final decision on the matter, although the date of their meeting is not yet known. The Department of Food and Public Distribution is actively considering a review of the FOB price of the contract for the issuance of RCAC by APEDA for the export of basmati rice.

This move comes in response to recommendations from rice exporters from agricultural states like Punjab, Haryana, and Uttar Pradesh. These exporters have been urging the government to lower the MEP for basmati rice in order to improve their competitiveness in the global market. Currently, the high MEP of $1,200 per quintal has led to Indian rice exporters losing orders to competitors from Pakistan and Thailand, which has negatively impacted India’s position in the international rice market.

By reducing the MEP, the government aims to address these concerns and strengthen India’s status as a leading exporter of premium basmati rice. This decision is expected to benefit both the rice industry and Indian consumers, ensuring access to affordable rice options while supporting farmers in obtaining competitive prices for their produce.

In conclusion, the Indian government is considering reducing the MEP for basmati rice to make rice more affordable for consumers and to support farmers in obtaining better prices. This move is in response to recommendations from rice exporters, who have been facing challenges due to the high MEP. By lowering the MEP, India aims to improve its export competitiveness and strengthen its position in the global rice market.

Source: [CNBCTV18](https://www.cnbctv18.com){:target=”_blank” rel=”nofollow”}