India likely to cut floor price for basmati rice exports, sources say
Basmati rice exports news: The government is likely to bring down the floor price, or minimum export price (MEP) for basmati rice, to $950 per metric ton from $1,200 a metric ton, said the sources, who did not wish to be named because the decision has not been made public.
Basmati rice exports news: India is expected to cut the floor price it has set for basmati rice exports, government and industry sources said on Tuesday, after farmers and exporters complained it was damaging trade. The government is likely to bring down the floor price, or minimum export price (MEP) for basmati rice, to $950 per metric ton from $1,200 a metric ton, said the sources, who did not wish to be named because the decision has not been made public.
India imposed a $1,200 per ton MEP on basmati rice shipments in August to keep a lid on local prices ahead of key state elections. The MEP was expected to be cut with the arrival of the new season harvests, but the government said on Oct. 14 said it would maintain it until further notice, angering farmers and exporters who said the new crop had led to a drop in domestic prices.
Authorities later said they were actively reviewing the MEP. India and Pakistan are the only growers of basmati rice. New Delhi exports more than 4 million metric tons of basmati - the premium long-grain variety famed for its aroma - to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates and the United States.
"The decision to lower the MEP would help both farmers and exporters who suffered on account of the $1,200 MEP," said Prem Garg, president of the Indian Rice Exporters Federation. The MEP hit the trade so severely that exporters stopped buying the rice from farmers, he said. The decision would help resume trade in basmati rice, said Vijay Setia, a leading exporter from the northern state of Haryana. India, the world's biggest rice exporter, has also curbed exports of non-basmati rice varieties.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
IRCTC Dividend 2024: Railway PSU announces 200% interim dividend - Check record date and other details
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
07:40 AM IST