Basmati exports surge after floor price removal

The Centre’s decision to remove the floor price for basmati rice exports is expected to spur a flurry of orders from the Middle East, Europe and the Americas, leading exporters said, helping India increase its share of the global market.

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Earlier this month, India, which is the world’s biggest rice exporter, removed a floor price of $950 per metric tonne for basmati rice.

“This change has enabled exporters to offer basmati rice at more competitive prices globally, which is likely to drive higher export volumes,” Akshay Gupta, head of bulk exports at KRBL Ltd, said.

When restrictions were imposed, they helped Pakistan gain basmati market share. However, with the removal of the MEP, India would be able to reclaim the lost share, said Dev Garg, director of ViExport.