India reviewing floor price for basmati rice exports
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
The Indian government said on Sunday it is actively reviewing the floor price it has set for basmati rice exports even as it continues to curb overseas shipments.
The decision comes after New Delhi, the world’s biggest rice exporter, said on Saturday said it will maintain a $1,200 per ton minimum export price (MEP) on basmati rice shipments, which was first imposed in August to calm local prices.
Saturday's move had raised concerns among exporters, who were worried about a sharp drop in shipments due to the government decision.
The government's Sunday statement said there was a general decline in prices as the new rice crop has started arriving and the minister for consumer affairs had met exporters who told the government the floor price was adversely affecting exports.
Following the meeting, a review of the floor price "is under active consideration of the government," the statement said.
The MEP aims to help authorities ensure that non-basmati rice is not exported as basmati rice.
India in July banned exports of non-basmati white rice and later imposed a 20% duty on exports of parboiled rice.
