Global Rice News

India’s basmati rice exports are set to receive a boost as the country has signed contracts to export around 500,000 metric tons of the new season crop to top buyers in Europe and the Middle East. Traders believe that there is robust demand for this premium long-grain variety of rice.

India is a major exporter of basmati rice, shipping over 4 million tons annually to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates, and the United States. Europe is also a significant market for Indian basmati rice.

To stabilize domestic prices, India had imposed a ban on non-basmati white rice exports in June. However, this ban was lifted in August, and a minimum export price (MEP) of $1,200 per ton for basmati rice was set. This high floor price hindered exports and resulted in a surplus of new-season rice.

To address the issue, the Indian government reduced the floor price for basmati rice exports to $950 per ton last month. This move has breathed new life into the basmati rice trade, and traders have already signed export contracts for approximately 500,000 metric tons.

Prem Garg, president of the Indian Rice Exporters Federation, mentioned that there has been substantial interest in India’s new basmati rice crop, and despite the previous MEP of $1,200 per metric ton, they were unable to sign any deals. Now, with the lower floor price, they expect to export their usual annual volume of around 4 million metric tons.

The top buyers of Indian basmati rice this year include Turkey, Iraq, and Saudi Arabia. Traders have been able to secure export deals ranging between $1,000 and $1,500 per metric ton.

This development is expected to boost India’s basmati rice industry and support farmers who were burdened with excess stocks. The lower floor price has reinvigorated trade and is likely to result in significant export volumes.

Source: [Business Standard](https://www.business-standard.com)