Basmati rice price in India stable despite export restrictions
Published on: October 14, 2023.
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India Upholds Basmati Rice Export Floor Price Indefinitely
India reinforces its status as the world’s top rice exporter by proclaiming it will indefinitely uphold the floor price for basmati rice exports. This resolution came to light after a recent government order was issued, emphasizing continued efforts to moderate the outflow of this precious grain.
Maintaining Minimum Export Price
As a strategy to stabilize domestic prices ahead of key state elections, rice exporters from India initially implemented a Minimum Export Price (MEP) of $1,200 per tonne on basmati rice shipments back in August. This move aimed to limit excessive exportation, and originally had an end date set for Sunday. Instead, the government has now resolved to extend the MEP indefinitely, ensuring basmati rice market stability.
Regulating Rice Export Varieties
The Indian government had previously established measures to control the outflow of non-basmati white rice in July. On Friday, they reinforced these steps by levying a 20% duty on parboiled rice export, in an expansive endeavor to oversee the export of all rice varieties.
Double Benefit of MEP
The MEP’s extension is twofold in its benefits. It helps stabilize basmati rice prices and deters misrepresentation of non-basmati rice as its pricier counterpart in global markets. This step exemplifies India’s dedication to maintaining the integrity of its rice exports, safeguarding the reputation of its top-tier basmati rice, and verifying that international markets accurately receive its assortment of rice offerings.
Navigating the Global Rice Trade Scene
While navigating complicacies related to the worldwide grain trade and domestic political dynamics, the decision to prolong the MEP mirrors a forward-thinking strategy. It aims to protect not only India’s home economy, but also its significant role in the worldwide rice market.
India-Sri Lanka Ferry Service
In other news, the India-Sri Lanka ferry service is set to bolster Trade and reinforce bilateral bonds, according to Prime Minister Modi. This service is seen as a milestone in boosting people-to-people relations between the two nations.
