Consideration of reducing the minimum export price of basmati rice to $950 per tonne

Mumbai: The government is considering reducing the minimum export price of basmati rice. Considering the complaints of farmers and exporters that the trade is being lost due to the high minimum price, the government is likely to reduce the price limit to $950 per tonne. The minimum export price of basmati is currently $1200 per tonne.

To maintain the availability of rice in the country and keep the price under control, the government has fixed the minimum export price of basmati at 1200 per tonne in August this year. Exporters cannot export below this price.

Exporters are arguing that India's prices are high in the global basmati trade, making it difficult to stay competitive.

Rice is the main kharif crop. Planting operations for the current season have been completed. But the new crop of rice will start coming from January. However, the sources said that the government is reviewing the export prices keeping in mind the demands raised from various levels.

With the current year's monsoon being disproportionate in some areas, the government's eye is also currently on rice production. Keeping in mind that assembly elections are being held in five states of the country in November, the government wants to take vigilance to ensure that food prices do not increase. India and Pakistan are major producers of Basmati. India's basmati rice is mainly exported to Yemen, America, Saudi Arabia, UAE etc.

It is also being reported that exporters have stopped buying rice from farmers because of the high minimum export price.