Basmati rice export prices plummet below government MEP, global buyers stay away
The export price of basmati rice plummeted below the government-fixed minimum of $950/tonne to $800-$850/tonne, reducing domestic prices to Rs 65/kg. Despite low prices, global buyers are scarce. Exporters attribute this to uncertainty caused by the government’s fluctuating minimum export price, previously raised to $1200/tonne in August and then lowered to $950/tonne in October. Importing countries rushed to purchase, leading to high initial quantities but subsequent market challenges persist.
The export price of basmati rice has fallen way below the governmentfixed minimum export price of $950 per tonne to $800-$850 per tonne, and despite the low prices, there are few global buyers.
Domestic prices too have fallen from Rs 75 per kg to Rs 65 per kg on low export offtake. Exporters said importing countries had bought good quantities of basmati rice from India in a hurry following the uncertainty created by the government by once increasing the MEP to $1200 per tonne last August and then bringing it down to $950 per tonne in October, two large exporters said.
