Basmati rice exports from India have declined significantly in recent months due to the government’s decision to impose a minimum export price (MEP) of $1,200 per quintal.
The MEP was imposed in August 2023 in an attempt to curb domestic inflation and ensure food security. However, the high MEP has made Indian basmati rice less competitive in the global market.
As a result, basmati rice exports from India have fallen by over 30% in the first six months of the 2023-24 financial year compared to the same period last year.
The decline in basmati rice exports has had a negative impact on Indian farmers and exporters. Farmers are getting lower prices for their basmati paddy, and exporters are losing business to competing countries such as Pakistan.
The Indian government is under pressure from farmers and exporters to reduce the MEP on basmati rice. However, the government has so far refused to do so.
The government’s decision to impose a high MEP on basmati rice has been criticized by economists and trade experts. They argue that the MEP is distorting the market and harming Indian farmers and exporters.
The decline in basmati rice exports is a matter of concern for the Indian government. Basmati rice is a major source of foreign exchange earnings for India. It is also a valuable source of employment for millions of Indians.
The Indian government needs to review its MEP policy on basmati rice in order to protect the interests of Indian farmers and exporters, and to boost India’s foreign exchange earnings.