Exporters have sought removal of the minimum export price (MEP) of $950/tonne for basmati rice to maintain the export momentum this fiscal, taking into account large stocks and bumper harvest forecast.
They said prices of the aromatic and long grain have gone down in the domestic as well as global markets. In FY24, India exported a record 5.24 million tonne (MT) of aromatic rice valued at $5.83 billion. Domestic prices have declined by Rs 10/kg to Rs 65 because of higher stocks compared to previous years.
Trade sources said that in the kharif season of 2024, the country has produced 8 MT of aromatic rice, which is about 20% higher than the previous year. Around 1.5 MT is consumed domestically. Sources said around 1.5-2 MT of basmati rice is carried forward into the current fiscal.
In October last year, the government reduced the minimum export price for basmati rice to $950/tonne from $1,200/tonne. The aromatic and long grain rice commands a premium in the global market. India has a share of around 80% in the world aromatic rice market, while Pakistan holds a share of around 20% in basmati rice exports.
