Global Rice News

India Reduces Floor Price for Basmati Rice Exports

In a move to address the concerns of farmers and exporters, India has decided to cut the floor price for basmati rice exports. The floor price has been reduced from $1,200 per tonne to $950 per tonne, according to a government source. This decision comes after farmers and exporters raised complaints that the high minimum export price (MEP) was hindering the trade and causing shipment delays.

The Indian government had initially imposed the $1,200 per tonne MEP in August as a measure to control local prices before crucial state elections. However, with the arrival of the new season’s harvests, it was widely expected that the MEP would be revised downwards. Surprisingly, on October 14th, the government announced that the MEP would remain unchanged until further notice. This announcement drew criticism from farmers and exporters who argued that the new season’s rice crops had led to a decline in domestic prices.

The decision to lower the floor price is expected to provide relief to farmers and exporters alike. By reducing the MEP to $950 per tonne, India aims to encourage more exports of basmati rice and facilitate smoother trade operations. This move will not only benefit the farming community but also ensure the continuity of the rice export business, which is a vital sector for the Indian economy.

Basmati rice holds significant importance in the global market, with demand coming from various countries. It is known for its distinct aroma, long grains, and delicate texture, making it a popular choice for consumers around the world. By reducing the MEP, India aims to maintain its competitiveness in the international rice market and strengthen its position as a leading basmati rice exporter.

With this decision, both farmers and exporters will have the opportunity to capitalize on the new season’s rice crops and price fluctuations in the international market. The revised floor price will provide flexibility and enable them to cater to the demands of global buyers more effectively.

In conclusion, India’s decision to lower the floor price for basmati rice exports is a significant step towards supporting the farming community and boosting the country’s rice export industry. By addressing the concerns raised by farmers and exporters, India is ensuring the smooth functioning of the trade and maintaining its position as a key player in the global basmati rice market.

Source: [Source Article](https://www.dawn.com)