India inks deals to export 500,000 metric tons of Basmati rice: Report
New Delhi: India has entered into agreements to export about 500,000 metric tons of newly harvested basmati rice, making the most of the strong demand from key markets in Europe and the Middle East, Reuters reported citing rice traders.
India exports over 4 million tons of basmati annually, a high-quality long-grain variety renowned for its fragrance, to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates, and the United States.
The European market also represents a major destination for this rice.
In an effort to steady the domestic prices, India had suspended non-basmati white rice exports in June and subsequently marked a minimum export price (MEP) or floor price of $1,200 per ton for basmati in August.
However, this measure led to a decline in exports of the premium rice variety and left farmers burdened with surplus stocks of the new-season rice.
In order to address this, the government reduced the floor price for basmati exports to $950 per ton last month.
Following the adjustment to the floor price, which had initially caused a halt in trade after the August decision, there has been a resurgence in basmati rice transactions, the report said, citing the traders.
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