India plans to reduce the basmati floor price from $1,200 per metric ton to $850 per metric ton. The move is expected to aid millers and traders in exporting the rice grade. The decision follows a drop in international basmati rice prices, and it aims to promote rice exports. Read on for more information.
India is losing its global market share in basmati rice as a result of the government’s decision to set a minimum export price. At a recent food fair in Istanbul, no Indian companies were able to secure orders for the new basmati crop. Global buyers are resorting to tactics such as delaying payments and pressuring Indian basmati traders to fulfill old orders. India produces five varieties of basmati rice and exporters are not buying rice from farmers due to the lack of orders.
