India to lower minimum export price for basmati rice

India is set to reduce the Lfloor price for basmati rice exports in response to concerns raised by millers and traders about a significant decline in overseas sales of this premium aromatic grain.

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According to sources familiar with the matter, India will lower the basmati floor price from $1,200 per metric ton to $850 per metric ton to facilitate the export of this rice grade. These sources, who requested anonymity as they are not authorized to speak to the media, confirmed this decision.

The move comes after India had previously established the floor price, known as the minimum export price (MEP), for basmati rice shipments at $1,200 per metric ton last month. Authorities had imposed the MEP to ensure that non-basmati rice was not being exported under the guise of basmati rice.

In July, India surprised buyers by imposing a ban on the export of widely consumed non-basmati white rice, following a ban on broken rice exports the previous year.

Prem Garg, president of the Indian Rice Exporters Federation, welcomed the decision to lower the basmati MEP. He pointed out that this adjustment would benefit farmers who were experiencing losses due to declining exports and help India maintain its leading position in the global basmati rice market.