India’s Possible Basmati Rice Export Price Cut Boosts Shares of Rice Producers
Published on: October 25, 2023.
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Shares of rice companies are trading positively following reports of the government’s plan to reduce the minimum export price (MEP) of basmati rice. The current MEP levels are impacting rice shipments. The government is expected to issue a formal notification to reduce the MEP to $950 per tonne, down from the current $1,200 per tonne. This decision comes after recommendations were made by rice exporters from Punjab, Haryana, and Uttar Pradesh. The industry has been urging the government to lower the MEP for basmati rice in order to improve export competitiveness.
This reduction in MEP is seen as a positive development by the rice industry stakeholders. They have been facing challenges in securing international orders due to the high MEP of $1,200 per quintal. At recent global food fairs in Istanbul and Iraq, Indian rice exporters lost orders to competitors from Pakistan and Thailand. The proposed reduction aims to address these concerns and strengthen India’s position as a prominent exporter of premium basmati rice.
Shares of rice companies, including KRBL, LT Foods, and Chaman Lal Setia, are trading higher on the news. Kohinoor Foods has seen a significant surge in shares, with a 5% increase. The overall market response to this development has been positive.
This move is expected to benefit not only the rice industry but also Indian consumers. It will ensure the availability of affordable rice options while supporting rice farmers in obtaining competitive prices for their produce.
In conclusion, the government’s plan to reduce the MEP of basmati rice is a welcomed decision by the rice industry. It aims to address the challenges faced by exporters and strengthen India’s position in the international rice market.
Source: [CNBC-TV18](https://www.cnbctv18.com)
