India exports 500,000 tons of new season basmati rice
Published on: November 15, 2023.
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India’s basmati rice exports have received a boost with contracts signed to export around 500,000 metric tons of the new season’s rice to Europe and the Middle East, according to traders. Basmati rice, a premium long-grain variety known for its aroma, is highly sought after in countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates, and the United States. Europe is also a significant market for this rice.
In order to stabilize domestic prices, India had previously banned the export of non-basmati white rice in June. However, this decision hindered exports of the premium variety and resulted in farmers being burdened with large stocks of new-season rice. To address this issue, the Indian government recently reduced the minimum export price (MEP) for basmati rice from $1,200 to $950 per ton.
This reduction in the floor price has revitalized the basmati rice trade, leading to a renewed interest and export contracts for around 500,000 metric tons. Despite the MEP, Indian traders have managed to sign export deals between $1,000 and $1,500 per metric ton. Turkey, Iraq, and Saudi Arabia have emerged as the top buyers of basmati rice this year.
Despite the challenges, traders remain optimistic that they will be able to export the usual annual volume of approximately 4 million metric tons of basmati rice. The demand for the aromatic rice variety continues to drive the growth of India’s basmati rice exports, making it a lucrative business for rice exporters in the country.
Source: [BRecorder](https://www.brecorder.com)
