The stagnant floor price for India’s basmati rice exports is causing a steep decline in overseas sales, with severe implications for farmers’ incomes. This is compounding woes for Indian rice exporters, potentially allowing Pakistan to seize the short-term basmati market.

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Rice exporters and traders suspend procurement due to high minimum export price (MEP). The decision, impacted by India’s maintenance of a high MEP for basmati rice, has raised concerns about sustainability as it rivals Pakistan’s significantly lower rates. Leading bodies advocate for this procurement halt, anticipating impacts on trade viability.

The Indian government is reassessing the minimum export price for basmati rice due to concerns over price hikes negatively impacting exports. This consideration follows requests from rice exporters for a reduced export rate, amidst measures to control domestic rice supply and prices. The review will reportedly also consider international prices.

High floor price for Indian Basmati rice exports imposed by the government is causing significant financial setbacks for farmers and rice exporters. The $1,200 per ton price is limiting overseas sales and creating surplus stock, with calls for urgent price cut to reinvigorate the faltering industry.

India sustains its minimum export price for basmati rice at $1,200 a ton, impacting overseas sales, affecting farmer income, and potentially leading to massive stockpiles. With sales dwindling, this decision poses a significant threat to India’s basmati rice industry and paves the way for Pakistan to take over the market.

Rice exporters in Punjab, Haryana and Uttar Pradesh have halted grain collection due to the government’s decision to maintain the high minimum export price (MEP) for basmati rice at USD 1,200 per tonne. Concerns arise as this pricing is deemed economically unviable for the procurement and export of the grain.

“Crucial changes in Pakistan’s business landscape are anticipated as petrol prices decrease for the second time, signaling an overall economic improvement. National Business Group Pakistan’s leader, Mian Zahid Hussain, attributes this positive turn to declining international oil prices and the strengthening of the Pakistani Rupee.”

Basmati rice farmers in Haryana are grappling with a procurement boycott by private traders, triggered by the government’s decision to set a minimum export price cap of $1,200 per tonne. This has left farmers in uncertainty, potentially leading to price deterioration across all basmati varieties.