Need to remove basmati rice floor price to boost shipments
Indian authorities need to promptly cut or remove a floor price for basmati rice exports to help farmers to boost overseas sales of the premium grade and avoid a glut that would further erode farm income, millers said. ?
India and Pakistan, the only growers of basmati, both try to promote the premium grade of rice in a manner similar to French Champagne or Darjeeling tea.
New Delhi exports 4-5 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. ?
Europe is another big market for the rice. ?
Last year New Delhi set a floor price, or minimum export price (MEP), of $1,200 a metric ton and later cut the MEP to $950 a ton.
India, the world's biggest rice exporter, also curbed exports of non-basmati varieties in an attempt to keep a lid on domestic prices. ?New Delhi exports 4-5 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. ?
Europe is another big market for the rice. ?
Last year New Delhi set a floor price, or minimum export price (MEP), of $1,200 a metric ton and later cut the MEP to $950 a ton.
India, the world's biggest rice exporter, also curbed exports of non-basmati varieties in an attempt to keep a lid on domestic prices. ?