india reduces basmati rice export floor price to boost international business
Published on: October 27, 2023.
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India Cuts Basmati Rice Export Price, Boosting Competitiveness
In a move to address concerns raised by farmers and exporters, India has reduced the floor price for basmati rice exports. The government source confirmed that the price has been lowered from $1,200 per tonne to $950 per tonne. The initial decision to impose a minimum export price (MEP) of $1,200 per tonne was made in August to control domestic prices ahead of state elections. However, with the arrival of the new season harvests, farmers and exporters called for a reduction in order to boost trade.
India, along with Pakistan, is a major exporter of basmati rice. With over four million tonnes exported annually, countries such as Iran, Iraq, Yemen, Saudi Arabia, the UAE, and the US rely on Indian basmati rice. This reduction in export price will improve the competitiveness of Indian basmati rice in the global markets, according to Atul Garg, managing director at GRM Overseas.
The decision to lower the export price follows challenges faced by farmers in selling their paddy. Millers and traders had stopped coming to key wholesale markets, resulting in a lack of purchases. However, with the new lower export price, it is anticipated that buyers will resume their purchases, stabilizing paddy prices that have seen a nearly 20% decline over the past two months.
India, being the world’s largest rice exporter, has also limited exports of non-basmati rice varieties.
For more information on Indian basmati rice exports, please visit [Source].
