NEW DEHLI: Indian exporters have criticized their government for keeping the present floor price for basmati rice, claiming the move will allow Pakistan to take over the global market.
Pakistan and India are the only basmati rice growers. India exports more than 4 million metric tons of basmati to countries such as Iran, Iraq, Iran, Yemen, Saudi Arabia, the United States, and the United Arab Emirates.
In August, it set a floor price, or minimum export price (MEP), of $1,200 a ton. It was predicted to cut this MEP, but on Saturday, the government revealed it would maintain the floor price until following notice.
A leading exporter who asked for anonymity told Reuters, that farmers were frustrated saying Pakistan could seize control of the basmati rice market in the short term.
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India has also restricted the export of non-basmati rice varieties to keep domestic pricing under control before important state elections.
Sukrampal Beniwal, a basmati grower in the country’s north, said the farmers were having massive losses adding there were no buyers.
A leading exporter from northern Haryana, one of India’s breadbaskets, Vijay Setia, said, “The decision to continue with the $1,200 MEP is a big blow to us.” He demanded that the government immediately cut it to $850-$900 a ton.
According to Beniwal, millers and dealers stopped coming to several wholesale markets to buy, which has made it difficult for basmati rice growers to sell their products.
According to dealers, Basmati rice prices have decreased by more than 20% since the government implemented the MEP.
The government does not purchase basmati to increase state reserves, and it is not a commonly consumed food in India.
