Global Rice News

The Central government of India has announced a reduction in the floor price for basmati rice exports, in an effort to boost the country’s rice industry. The floor price has been lowered from $1,200 per tonne to $950 per tonne. This decision comes amid concerns that higher prices were hindering the export of basmati rice.

The government had initially raised the floor price to $1,200 per tonne in August, in an attempt to increase the availability of basmati rice in the domestic market. This move was made as food inflation was on the rise at the time. However, this higher floor price made Indian exports of basmati rice less competitive compared to Pakistan, which also exports a significant amount of basmati rice.

The decision to reduce the floor price was prompted by protests from farmers and traders who were unhappy with the export curbs on basmati rice. These protests coincided with assembly elections taking place in key states. In response to the concerns raised by industry representatives, Food Minister Piyush Goyal assured that the minimum export price (MEP) would be reviewed.

Food Secretary Sanjeev Chopra stated that the government has actively been reviewing the MEP, indicating the government’s commitment to addressing the concerns of the rice industry. The reduction in the floor price is expected to make Indian basmati rice more competitive in the international market, boosting exports and benefiting rice suppliers and exporters.

According to data, India’s basmati rice exports reached approximately 2 million tonnes valued at Rs 2,200 crore during the period of April to August. This represents a 12% increase in value compared to the same period in the previous year. However, exports had slowed down due to the high MEP.

This decision to lower the floor price for basmati rice exports is a positive development for the rice industry in India. It is expected to revive exports and make Indian basmati rice more competitive in the global market.

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