India likely to cut floor price for basmati rice exports to $950 MT

In response to concerns raised by farmers and exporters, the Indian government is considering a reduction in the floor price set for basmati rice exports. This move is expected to alleviate the challenges faced by those involved in the trade. Government and industry sources revealed that the minimum export price (MEP) for basmati rice may be lowered from $1,200 per metric tonne to $950 per metric tonne. The sources, who preferred to remain anonymous, noted that the decision has not yet been officially announced.

The Indian government initially imposed a $1,200 per tonne MEP on basmati rice shipments back in August. This measure was implemented to control local prices in anticipation of key state elections. While it was anticipated that the MEP would be adjusted with the arrival of new season harvests, the government announced on October 14th that it would be maintained until further notice. This decision led to discontent among farmers and exporters who pointed out that the new crop had caused a decline in domestic prices.