India reduces minimum price for basmati rice exports to boost shipments
Published on: October 27, 2023.
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India has reduced the floor price for basmati rice exports from $1,200 per metric ton to $950, according to a government source. This decision comes after complaints from farmers and exporters that the high floor price was harming the trade by delaying shipments.
The minimum export price (MEP) of $1,200 per ton was implemented in August to control domestic prices before key state elections. It was expected to be lowered with the arrival of the new harvest season, but on October 14, the government announced that it would maintain the price until further notice. This decision upset farmers and exporters who claimed that the new season’s rice crops had caused a decline in domestic prices.
Atul Garg, managing director at GRM Overseas (GRMO), stated that the reduction in price will restore the competitiveness of Indian basmati rice in the global markets. Exporters are now working to regain the ground they lost due to the high floor price.
India and Pakistan are the leading exporters of basmati rice. India exports over 4 million metric tons of basmati rice, which is known for its aroma, to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates, and the United States.
This year, India is expected to produce more basmati rice than the previous year as farmers have expanded their cultivation areas following record returns. However, farmers have been struggling to sell paddy because millers and traders have stopped making purchases at key wholesale markets.
With the reduction in floor price, it is expected that millers and traders will resume buying paddy, which will help stabilize paddy prices that have dropped by nearly 20% in the last two months.
To read the original article, click [here](https://headtopics.com/news/india-cuts-floor-price-for-basmati-rice-exports-amid-complaints-against-higher-cost-11944724).
