NEW DELHI: India is likely to cut the floor price for basmati rice exports and replace the 20 per cent export tax on parboiled rice with a fixed duty on overseas shipments, Indian government sources said Thursday, in an apparent move to help India retain its market share against Pakistan.
The world’s biggest rice exporter imposed various curbs on exports in 2023 and continued them in 2024 to keep local prices in check ahead of the general elections held in April-May.
India is expected to lower the basmati rice’s minimum export price (MEP) to $800-$850 a metric ton, down from $950 a ton, to boost shipments, said the sources, who didn’t wish to be identified as they are not authorised to talk to media.
Lowering the MEP would help India retain its market share against Pakistan, which exported a record amount of rice this year due to New Delhi’s export curbs.
India and Pakistan are the leading exporters of basmati rice. New Delhi exports more than 4 million metric tons of basmati — the premium long-grain variety famed for its aroma — to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates and the United States.
New Delhi is also expected to drop the 20 per cent export tax on parboiled rice and introduce a minimum export tax to stop under-invoicing of shipments, the sources said.
The government was examining possibilities of easing rice export curb, including resuming white rice exports, Indian media reports said.
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