- India is planning to reduce the floor price for basmati rice exports from the current $1,200 per metric tonne to $950 per metric tonne.
- The minimum export price (MEP) for basmati rice was initially set at $1,200 per metric tonne in August to stabilize local prices before state elections.
- The government’s decision to maintain the MEP at $1,200, despite the new crop leading to lower domestic prices, has raised concerns among farmers and exporters.
- India and Pakistan are the primary producers of basmati rice, with India exporting over 4 million metric tonnes of this premium long-grain variety to several countries.
- The reduction in the MEP is expected to benefit both farmers and exporters and help restart trade in basmati rice.