India, the world’s leading rice exporter, is facing pressure from domestic traders to relax export restrictions to maintain their market share. As the country prepares for a strong harvest, traders are urging the government to either eliminate or reduce the minimum export price on premium basmati rice.
The All India Rice Exporters Association (AIREA) has requested that the government consider lowering the minimum export price from US$950 per ton to US$750 per ton in anticipation of a bumper crop. Currently, India only allows exports of basmati and parboiled rice varieties, with a 20% export tax imposed last year to prevent domestic shortages due to erratic weather conditions.
India’s export restrictions have impacted around 30% of its global rice shipments, with exports to over 150 countries. The bans on non-basmati and common rice varieties were implemented last July, except for shipments aimed at addressing food security concerns in other countries.
The export curbs were largely seen as a political move to control inflation ahead of national elections earlier this year. India’s rice traders are now urging the government to reconsider these restrictions to maintain their global market presence and capitalize on the upcoming strong harvest.
[ad_2]
Source link
