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Trade Trends News
26-09-2023
India will reduce the floor price of Indian aromatic rice exports in the coming days after millers and traders complained of a sharp drop in overseas sales of the premium aromatic grain.
India will cut the floor price of Indian aromatic rice to $850 per tonne from $1,200 per tonne to help millers and traders ship rice grades, sources said.
Last month, India set the floor price or minimum export price (MEP) for transportation of basmati rice at $1,200 per tonne.
Authorities said the MEP was implemented to help New Delhi ensure that non-Indian aromatic rice is not exported as Indian aromatic rice.
After banning the export of broken rice last year, India surprised buyers by banning the export of widely consumed non-basmati white rice in July this year.
"The decision to reduce the price of basmati rice will help farmers who have suffered losses due to fall in exports," said Prem Garg, president of the Federation of Indian Rice Exporters.
"The move will also help India maintain its pre-eminent position in the global basmati rice market."
Garg said India will face an oversupply of quality rice as Indian aromatic rice is not widely consumed in the country and the new season crop will enter the market from next month.
"Large stocks will hit prices and hurt farmers and the Indian rice industry, so the initiative to reduce MEPs will be very helpful," he said.
India and Pakistan specialize in growing high-quality aromatic Indian aromatic rice. India exports about 4 million tons of Indian aromatic rice to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates and the United States.
Vijay Setia, a leading exporter in the northern state of Haryana, one of India's breadbaskets, said, "The price of $1,200 per ton in the European Parliament is too high and that's why most millers and traders are not able to export basmati rice."
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