Summary:

India's recent move to reduce the minimum export price (MEP) for basmati rice is likely to dramatically increase demand from the Middle East, Europe, and the Americas. The removal of the $950 per metric ton minimum price allows Indian exporters to offer more competitive pricing. Mr. Akshay Gupta of KRBL Ltd. believes that this adjustment will boost export volumes ahead of the new season crop's arrival.

The previous minimum export price (MEP) limited certain grades of basmati rice shipments. Its withdrawal now provides global purchasers with greater options, according to Gaurav Bhatia, director of DD International. India and Pakistan are the only producers of quality basmati rice, and previous restrictions allowed Pakistan to gain market dominance. With the MEP gone, India may recapture this share, as stated by Dev Garg of ViExport. In the first four months of the fiscal year, India's basmati rice exports increased by 20% year-on-year to 1.9 million metric tons, with output expected to rise by 10-12% this year.

Source: IBEF 

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