Basmati Exports
Exporters urge PM to cut minimum export price of basmati to $700/tn
This story was originally published at 16:37 IST on 30 August 2024
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NEW DELHI – Indian rice exporters have written to Prime Minister Narendra Modi urging him to intervene to reduce the minimum export price of basmati from the current $950 per tn.
In a letter to Modi, the All India Rice Exporters Association asked the government to consider reducing the minimum export price of basmati rice to $700 per tn as the current high minimum export price has made Indian basmati rice uncompetitive internationally.
"Pakistani rice is priced about $50-$100 lower per metric ton (tn) in the international market, while we are unable to export below $950 per metric ton (tn). As a result, Pakistan is capitalising on this situation by selling their rice at $800 per metric ton (tn)," the association said in its letter.
To regain competitiveness, India should consider lowering the minimum export price to $700 per tn, enabling Indian exporters to sell rice at $750-$800 per tn in the international market, it said.
Informist had on Aug 23 reported that the government is likely to cut the minimum export price of basmati rice to around $850 per tn from $950 per tn. A notification to this effect may be issued within two weeks, the report said, citing a senior government official.
The association has, however, asked for a floor price lower than what the government has been discussing. "It is important to lower the floor price to $700 per tn, and we are confident that with the opportunity to sell at this reduced price, we will be able to price our rice at $750-800 per tn in the global market," the letter said.
The organisation also assured the government that no non-basmati rice will be exported under the lower export floor price as the global prices for non-basmati rice varieties are hovering below $600 per tn. End
Reported by Pallavi Singhal
Edited by Saji George Titus
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