Challenges Faced by Indian Basmati Rice Farmers: Losses Loom
Published on: October 18, 2023.
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India’s Decision to Maintain Basmati Rice Export Floor Price Could Impact Overseas Sales
India’s decision to keep the current floor price for basmati rice exports has sparked concerns among farmers and millers, who believe it will negatively impact overseas sales of the premium rice variety. This move could also have repercussions on farm income and leave growers with large stocks of the new-season variety. It is worth noting that India and Pakistan are the only countries that grow basmati rice.
India, one of the leading exporters of basmati rice, ships over 4 million metric tons of this premium long-grain variety to countries like Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates, and the United States. In August, New Delhi had set a floor price, also known as the minimum export price (MEP), of $1,200 per ton. There were expectations that this MEP would be lowered, but the government has decided to maintain it until further notice.
India, being the largest rice exporter worldwide, has also imposed restrictions on the export of non-basmati rice in an effort to control domestic prices ahead of important state elections.
Farmers and millers fear that the decision to maintain the floor price could hamper their overseas sales and affect their revenue. It also puts them at risk of being burdened with excessive stocks of the new-season variety.
It remains to be seen how this decision will impact India’s rice industry and whether there will be any adjustments made to the floor price in the future. In the meantime, industry stakeholders are closely monitoring the situation and hoping for a favorable outcome.
For more information, please visit the source article on BR Website.
Source: BR Website
