Government Lowering Minimum Export Price (MEP) of Basmati Rice and Allows 75,000MT Export to UAE
New Delhi, 26th September 2023 - In response to Pakistan's recent decision to set a price of $1,050 per tonne for basmati rice, the Indian government is considering a reduction in the Minimum Export Price (MEP) of this prized commodity. Reports suggest that the Centre may lower the MEP by approximately $300 per tonne from its current rate of $1,200 per tonne in a bid to maintain competitiveness in the international rice market.
The move comes amid concerns of a potential impact on India's rice exports, given the significant price difference between Indian and Pakistani basmati rice. By adjusting the MEP, Indian authorities aim to ensure that Indian basmati rice remains an attractive choice for global buyers.
The Directorate General of Foreign Trade (DGFT) issued a notification stating, "Export of 75,000 metric tonnes (MT) of Non-Basmati White Rice (under HS code 1006 30 90) to the UAE is permitted through NCEL." This decision reflects the government's commitment to facilitating rice exports and tapping into new markets.
Earlier, the government took a proactive stance on rice exports by permitting the export of broken rice to several countries. This included a significant allocation of 5 lakh tonnes each to Senegal and Gambia, 2 lakh tonnes to Indonesia, 1 lakh tonnes to Mali, and 48,804 tonnes to Bhutan. These strategic export decisions aimed to bolster India's position as a prominent rice exporter in the global arena.
The Indian government has a history of taking proactive steps to ensure the competitiveness of its agricultural exports. Adjusting the MEP for basmati rice demonstrates its commitment to maintaining its stronghold in the international rice market. This move is expected to not only safeguard the interests of Indian rice farmers and exporters but also maintain India's position as a leading global supplier of high-quality basmati rice.
As discussions around the potential MEP adjustment continue, stakeholders within the Indian agricultural sector and international trade community will be closely monitoring developments to gauge the impact on India's basmati rice exports and its overall competitiveness in the global rice market.