After the removal of MEP, the pace of export of Indian Basmati rice will increase

24-Sep-2024 08:56 PM

New Delhi. Leading exporters say that after the government's decision to remove the minimum export price (MEP) fixed for Basmati rice,

orders for this long grain premium quality aromatic rice from Middle East Asia, Ukraine and America are expected to increase significantly, which will give India a good opportunity to increase its share in the global market.

It is worth noting that India has remained the largest exporter of rice in the world for more than a decade. The government had implemented a minimum export price of $ 1200 per tonne for Basmati rice in August 2023, which was reduced to $ 950 in October 2023 and now it has been completely abolished.

The abolition of MAP just a few weeks before the arrival of the new crop of Basmati paddy will facilitate the producers and exporters of Basmati rice in formulating their strategy.

According to a leading exporter organization, this policy change will help Indian exporters to offer their Basmati rice at a more competitive price in the global market, which can lead to a good increase in exports.

Actually, Minimum Export Price (MEP) was becoming a hindrance in the export of certain categories of Basmati rice and it was necessary to remove it.

The government has taken the right decision at the right time. Now global buyers will get an opportunity to access a whole range of options.

It is worth noting that premium grade Basmati rice is produced only in India and Pakistan and it is also exported from here.

MAP was not imposed in Pakistan, so it was able to increase its shipment by offering export of its Basmati rice at a price lower than India, but now it will have to face a tough challenge and tough competition from India.

This may reduce its exports, while the excellent export of Basmati rice from India is expected to continue.