Government may slash minimum export prices for basmati

• New Delhi is expected to reduce the minimum export price for basmati rice from USD1200 per metric ton to USD 950, following complaints from farmers and exporters about the market distortions induced by the price floor.
• The USD1200 price floor was imposed in August 2023 to bolster local supply to counteract food price pressures. Exporters have reportedly halted purchases of basmati rice from farmers due to the price floor.
• While the floor was expected to be slashed during the new harvest season, the government announced on 14 Oct that it intends to maintain the floor price until further notice. Authorities say that the price floor is being actively reviewed.
• A curb on the exports of non-basmati rice is still in place.

External Link : https://economictimes.indiatimes.com/news/economy/foreign-trade/india-likely-to-cut-floor-price-for-basmati-rice-exports-sources-say/articleshow/104666706.cms